North Eastern SMEs get Sh885m project funding

Business
By Macharia Kamau | Jul 20, 2024
Tana River Governor Samuel Godhana Dhadho. [File, Standard]

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.

"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.

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