The National Treasury has announced a plan to unveil a loan facility that will enable Small and Medium sized Enterprises (SMEs) to access more capital and address the challenges they face when starting their businesses.
“We already have the draft regulation to operationalize this fund which will be subjected to public participation throughout the country as from Monday 27 and see how the SME’s will access the fund,” Capital Business quoted Industrialization Principal Secretary, Francis Owino.
Apart from access to capital, other challenges that SMEs face include minimal reach to crucial information, lack of diversification of products and a high cost of production, resulting from the high cost of energy.
Furthermore, the fund seeks to enable Juakali traders in the country specialize in mass production and manufacturing of goods that will be subject to a set of standards, in order to become suppliers of affordable housing programme.
Once the Cabinet approves the fund, it will be accessible to traders operating in Biashara Centers to be set up across the country under new trade policy.