The British High Commission in Kenya has announced a USD5.2 million fund (approximately Ksh667 million) to support Micro, Small and Medium Enterprises (MSMEs) in Kenya.
In a statement on Tuesday, November 5, the High Commission disclosed that the fund aims to mobilise up to USD300 million (Ksh38.85 billion) of sustainable finance to provide affordable credit to MSMEs.
According to the High Commission, the fund will support at least 10,000 MSMEs and improve access to basic services for over 200,000 people.
"The ‘Listed SME Debt Fund’, sponsored by FSD Africa, aims to mobilise up-to USD $300 million (Ksh 38.85 billion) of sustainable finance to provide affordable credit to Micro, Small and Medium Sized enterprises.
"Of this amount, the funds targets to raise USD $240 million from domestic institutional investors and the rest from foreign investors. The fund will support at least 10,000 MSMEs; 50,000 households; create, protect and support over 89,000 jobs; and improve access to basic services for over 200,000 people," the British High Commission stated.
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It further declared that the fund is not specific to a sector and therefore will meet the needs of Kenyan business owners by lowering the cost of borrowing money.
"The fund will be listed and managed in Kenya. It aims to provide an attractive investment opportunity for Kenyan investors, by de-risking investments in MSMEs, whilst still offering attractive returns."
British High Commissioner to Kenya Neil Wigan stated that the fund bolsters the UK’s financial toolkit in Kenya, which has supported long-term job creation and economic growth over many years.
He added that the UK's economic relationship with Kenya is the cornerstone of the UK-Kenya strategic partnership.
"We must lower the cost of borrowing for Kenyans. This fund further bolsters the UK’s financial toolkit in Kenya, which has supported long-term job creation and economic growth over many years, and it will deliver for all the hardworking hustlers of this country—especially women, young people and persons with disabilities—who are often pushed right to the margins of the Kenyan economy," Wigan remarked.
