Small and medium-sized enterprises that have been worst hit by the COVID-19 pandemic will now benefit from a KSh 5 Billion kitty from the State Department of Trade.
According to Trade Chief Administration Secretary Lawrence Karanja, small businesses engaged in the manufacture of personal protection equipment (PPEs) will be given top priority when disbursing these funds and awarding government tenders.
The KSh 5 Billion cash is being doled out as part of the Government’s credit guarantee scheme, to assist struggling start-ups. In addition, SMEs that have difficulty in accessing markets will be offered a buyer- of- last- resort option by the state.
A recent survey by Kenya Private Sector Alliance(KEPSA) found that SMEs have been hardest hit by the effects of COVID-19 on the economy.
A total of 2,466 businesses participated in the survey, with 81 per cent reporting they have been impacted by Covid-19.
“Small and mid-sized companies reported the largest impact (high to very high) at 85% and 83% in comparison to 78% of micro-enterprises and 70% of large companies,” Kepsa said in the report.
The tourism and education sectors have received the most impact, with 95% and 93% of them respectively reporting very high impacts due to the closures of schools and most tourist spots.
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