North Eastern SMEs get Sh885m project funding
Business
By
Macharia Kamau
| Jul 20, 2024
Over 7,500 micro, small, and medium enterprises (MSMEs) across five northern Kenyan counties of Lamu, Tana River, Garissa, Wajir, and Mandera have benefited from over $6.6 million (Sh885 million) lending from USAid Kuza's Impact for Northern Kenya Fund in the last two years.
The project has created over 13,000 direct jobs in diverse sectors, including horticulture and agro-processing, fisheries and aquaculture, livestock, and dairy.
According to USAid, 71.99 per cent of the Fund's client enterprises are women-owned businesses.
Enterprises in Lamu county received the largest share of the overall loans at $2.6 million (Sh333 million) followed closely by Tana River County at $2.5 million (Sh320 million). Garissa County MSMEs received loans totaling $815,684 (Sh104.4 million) while entrepreneurs in Wajir and Mandera counties received loans valued at $418,014 (Sh55.5 million) and $318,057 (Sh40.7 million) respectively.
Agribusinesses in Tana River County received $2.1 million (Sh268.8 million) in loans to entrepreneurs in horticulture, pastoralism, crop farming, and fishing.
READ MORE
Orphan who benefited from Ebenezer scholarship excels in KCSE
Kenya's 'night runner': How a rural ritual with links to witchcraft became an urban staple
Museveni: still seeking power after 40 years of rule
Phasing out 8-4-4: KCSE exams enter final stretch
Concern over growing inequality as 47,798 candidates score E
Great Wall tenants accuse management of alleged negligence
Parents worry as 8-4-4 learners face neglect amid CBE transition
State faces new IMF test as loan talks resume
Let's prioritise quality learning this year
Saudi Arabia sets executions record in 2025, putting 356 people to death
"Notably, over 10 per cent of the loans went to climate-Smart enterprises, with enterprises in Garissa leading climate financing with $115,630 (Sh14.8 million) in loans," said USAid in a statement.
Investment potential
The organisation highlighted the progress of the USAID Kuza project during the recent investment conference bringing together the five counties and held in Lamu County.
The conference, themed Unveiling Opportunities: redefining Northern Kenya as an Investable Destination brought together approximately 380 attendees, 30 percent of whom were women.
Leaders from the region said there is immense potential that remains unexplored.
"Tana River County has all the potential for agriculture. We have maize in Galana Kulalu, rice in Bura and multiple irrigation schemes all along the belt of Tana River. Currently, we are exporting green grams to USA," said Dhaho Godhana, Governor, Tana River County.
The Ministry of Trade and Industry emphasised the potential of Kenya's livestock production at the conference and said it is actively seeking partnerships with domestic and international investors to spur the Northern region's economic transformation.