The World Bank has approved a $50 million International Development Association (IDA) credit to increase scale innovation and productivity amongst Kenya’s Small & Medium Enterprises.
The Kenya Industry and Entrepreneurship project (KIEP) is expected to benefit some 33,050 individuals and 2,393 firms. It will support the ambitious development targets outlined in Kenya’s development agenda that require significant growth in private sector jobs and overall productivity.
Currently, Kenya lacks the adequate skills that can produce a solid pool of internationally competitive, technology enabled businesses. SMEs, which are key drivers of the economy, face difficulties in improving their productivity due to poor managerial practices and information failures around how to upgrade. The country also has limited contact between traditional industry and technology enabled startups; a missed opportunity for both sides.
The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa.
