• About Us
  • Advertise
  • Privacy Policy
  • Contact Us
Hotnews
  • National
  • Region
    • All
    • Central
    • Coast
    • Eastern
    • Nairobi
    • North Eastern
    • Nyanza
    • Rift Valley
    • Western
    Kariokor leather Market to employ 10,000 workers after deal with Kenya Leather Development Council- Sonko

    Nairobi county employee declines to go on transfer

    Sakaja unclogs drainage to   Curb Flooding

    Sakaja unclogs drainage to Curb Flooding

    Nairobi County nominee for County Secretary is incompetent-MCAs

    Nairobi County nominee for County Secretary is incompetent-MCAs

    Miriam Kighenda’s body, daughter Amanda Mutheu retrieved from the Indian Ocean

    Malindi court restrains man from evicting businesswoman Vivien Nasimiyu Wamalwa from their matrimonial home

    Suspect in 53 million fake Gold scam charged in court

    Suspect in 53 million fake Gold scam charged in court

    Trans Nzoia Women Rep Siyoi tells PLWDs to Register, pledges to fund their tenders

    Trans Nzoia Women Rep Siyoi tells PLWDs to Register, pledges to fund their tenders

  • World
  • Agriculture
  • Business
  • Health
  • Lifestyle
    • All
    • Fashion
    • Food
    • Travel
    Tik Tok reminisces best moments in 2019

    Kenyans promote exciting cultural diversity on TikTok

    Tik Tok reminisces best moments in 2019

    TikTok’s favorite duo serving serious #couple goals

    My mother was against my music but bought me a book, says Migori star fashion Model

    My mother was against my music but bought me a book, says Migori star fashion Model

    Lilian Ng’ang’a dumps Governor Alfred Mutua

    Lilian Ng’ang’a dumps Governor Alfred Mutua

    Tik Tok reminisces best moments in 2019

    5 Billion soccer fans connected on Tik Tok to celebrate best UEFA Euro 2020 moments

    Can your Overall Lifestyle Affect your Success in Work or Business?

    Can your Overall Lifestyle Affect your Success in Work or Business?

    Trending Tags

    • Fashion Week
  • Education
  • Opinion
    • All
    • Editorial
    Duale’s impeccable record as Majority leader speaks for itself-ODM MPs

    Duale must be President William Ruto’s “Mr Fix it”

    Micro, Small and Medium Entrepreneurs Need Innovative Support for Quicker Recovery

    Micro, Small and Medium Entrepreneurs Need Innovative Support for Quicker Recovery

    Survival, Resilience and Renewal Strategies for MSMEs

    Survival, Resilience and Renewal Strategies for MSMEs

    Odinga asks Kenyans to prepare for referendum before December since “Reggae is still on”

    Luo Nyanza should abandon Raila Odinga and embrace other political leaders

    Know and Understand Your Children This Christmas

    Know and Understand Your Children This Christmas

    Odinga asks Kenyans to prepare for referendum before December since “Reggae is still on”

    Raila Odinga being conned by Kenyatta’s mandarins- Should learn from History

  • Politics
  • Sports
  • Video
No Result
View All Result
  • National
  • Region
    • All
    • Central
    • Coast
    • Eastern
    • Nairobi
    • North Eastern
    • Nyanza
    • Rift Valley
    • Western
    Kariokor leather Market to employ 10,000 workers after deal with Kenya Leather Development Council- Sonko

    Nairobi county employee declines to go on transfer

    Sakaja unclogs drainage to   Curb Flooding

    Sakaja unclogs drainage to Curb Flooding

    Nairobi County nominee for County Secretary is incompetent-MCAs

    Nairobi County nominee for County Secretary is incompetent-MCAs

    Miriam Kighenda’s body, daughter Amanda Mutheu retrieved from the Indian Ocean

    Malindi court restrains man from evicting businesswoman Vivien Nasimiyu Wamalwa from their matrimonial home

    Suspect in 53 million fake Gold scam charged in court

    Suspect in 53 million fake Gold scam charged in court

    Trans Nzoia Women Rep Siyoi tells PLWDs to Register, pledges to fund their tenders

    Trans Nzoia Women Rep Siyoi tells PLWDs to Register, pledges to fund their tenders

  • World
  • Agriculture
  • Business
  • Health
  • Lifestyle
    • All
    • Fashion
    • Food
    • Travel
    Tik Tok reminisces best moments in 2019

    Kenyans promote exciting cultural diversity on TikTok

    Tik Tok reminisces best moments in 2019

    TikTok’s favorite duo serving serious #couple goals

    My mother was against my music but bought me a book, says Migori star fashion Model

    My mother was against my music but bought me a book, says Migori star fashion Model

    Lilian Ng’ang’a dumps Governor Alfred Mutua

    Lilian Ng’ang’a dumps Governor Alfred Mutua

    Tik Tok reminisces best moments in 2019

    5 Billion soccer fans connected on Tik Tok to celebrate best UEFA Euro 2020 moments

    Can your Overall Lifestyle Affect your Success in Work or Business?

    Can your Overall Lifestyle Affect your Success in Work or Business?

    Trending Tags

    • Fashion Week
  • Education
  • Opinion
    • All
    • Editorial
    Duale’s impeccable record as Majority leader speaks for itself-ODM MPs

    Duale must be President William Ruto’s “Mr Fix it”

    Micro, Small and Medium Entrepreneurs Need Innovative Support for Quicker Recovery

    Micro, Small and Medium Entrepreneurs Need Innovative Support for Quicker Recovery

    Survival, Resilience and Renewal Strategies for MSMEs

    Survival, Resilience and Renewal Strategies for MSMEs

    Odinga asks Kenyans to prepare for referendum before December since “Reggae is still on”

    Luo Nyanza should abandon Raila Odinga and embrace other political leaders

    Know and Understand Your Children This Christmas

    Know and Understand Your Children This Christmas

    Odinga asks Kenyans to prepare for referendum before December since “Reggae is still on”

    Raila Odinga being conned by Kenyatta’s mandarins- Should learn from History

  • Politics
  • Sports
  • Video
No Result
View All Result
Hotnews
No Result
View All Result

Micro, Small and Medium Entrepreneurs Need Innovative Support for Quicker Recovery

In all this, irrespective of industries, the Micro, Small and Medium-sized Enterprises (MSMEs), have been particularly hard hit by reduced customer footfall and disruptions in supply chains, among other biting effects of the pandemic.

hotnews by hotnews
March 9, 2022
in Opinion
0 0
0
Micro, Small and Medium Entrepreneurs Need Innovative Support for Quicker Recovery

KCB Bank CEO Joshua Oigara.

Share on FacebookShare on Twitter

BY JOSHUA OIGARA

The COVID-19 pandemic has largely been framed as a public health crisis,
over one and a half years since it hit Kenya.

However, its economic impact has been severe and widespread.

The effects have been felt across the economy, significantly afflicting all sectors and households.
In all this, irrespective of industries, the Micro, Small and Medium-sized
Enterprises (MSMEs), have been particularly hard hit by reduced customer
footfall and disruptions in supply chains, among other biting effects of
the pandemic.

The widespread job losses and income cuts have also meant
depressed demand for MSMEs’ goods and services, due to reduced purchasing
power.
This has left MSMEs struggling and barely surviving.

A survey by the Kenya Private Sector Alliance (KEPSA) in October 2020 indicated that about 64% of the MSMEs surveyed had experienced a high or very high negative impact on their businesses from COVID-19.

These included loss of customers, liquidity challenges, high cost of operations, inability to pay salaries, and reduced labor productivity.

The MSMEs’ typically limited liquidity, financial flows and reserves, has
left them more vulnerable, compared to the larger corporates.

Thus, the pandemic, like any other shock, is guaranteed to throw them off balance in a very short time, effectively putting their survival in jeopardy.

This is cause for concern, considering the integral and strategic role that
MSMEs play in the economy.

This ranges from creating employment opportunities to supporting value chains across industries.

It is, therefore, important that these businesses are cushioned from such negative
effects, are supported to ride the wave of the crisis, and are enabled to
succeed.

When MSMEs thrive, the ripple effect snowballs and is more widespread,
inclusively, and sustainably across the economy.

Jobs are protected and quality of life enhanced for more households, among other economic benefits.
Of all the kinds of support that businesses require to cushion themselves
during such rough patches, the financial kind ranks top.

This effectively puts the financial services sector, particularly, in the driver’s seat, to protect these businesses from the harsh effects of the pandemic.

Throughout the pandemic, banks have gallantly stepped up to the frontline,
cushioning the economy.

Across industries, businesses and individuals have had their loans restructured to give them more time to repay among other measures.

However, there is need for banks and other players in the sector to go the
extra mile in protecting MSMEs, the lifeblood of the economy.

With the uncertainty surrounding the fast-evolving pandemic, it is still unclear how
long it will be here, or the form and shape that it will take.

A business-as-usual approach will not cut it for the situation that
businesses find themselves in presently.

The recently launched credit guarantee scheme by the National Treasury and
seven local banks is one such innovative approach towards unlocking credit
for MSMEs.

This assurance from government will enhance banks’ confidence to
lend to businesses, on flexible terms.
Basically, the participating commercial banks will independently review the
ability of the businesses to repay the loan and determine applicable
interest rate based on risk of default.

The Treasury will guarantee 25% of the loan in case of defaults while the Bank will take up the balance under third-party credit risk mitigation scheme.

This initiative is a sure game changer for the MSMEs as they seek to stay afloat in the wake of the economic crisis.

Besides, this will go a long way in supporting rural-based businesses to
flourish, touching on a vast majority of the Kenya’s population.

This will contribute significantly towards driving sustainable and inclusive growth
that leaves no one behind.

The rural population is still locked from certain advantages and opportunities that the urban population and large businesses enjoy.

Access to credit facilities is one such factor.

The challenge for the banking industry now is to design concessional loans
for businesses, with much more favorable terms.

Though in dire need of working capital, to stay afloat, the  normal terms may not be suitable for businesses.

Adequate financing is critical to not only help them weather these tough times, but also put them in good stead to recover and build back better.

This is for example the inspiration behind KCB Bank’s new, discounted MSME loan that comes with the options of being either secured or unsecured.

Alongside such innovative financing, businesses also need training and
advisory support to weather effects of the pandemic.

In the unfamiliar territory that businesses are increasingly finding themselves in,
opportunities for continuous up skilling, puts them in good stead to
effectively deal with the situation and thrive.

It is such out-of-the-box support that could be the difference between
MSMEs staying in operation or struggling and eventually having to fold, at
a huge cost to the economy.

These may just be the straws that businesses clutch on to weather the pandemic.

The pandemic has been a wake-up call for banks to rethink their business
models and sharpen their priorities to create opportunities for MSMEs to
navigate the crisis.


*The writer is the KCB Group PLC Chief Executive Officer and Managing
Director*

 

Like us on facebook

https://web.facebook.com/hotnewspublications

Follow us on Twitter

https://twitter.com/hotnewsk

Website:

https://hotnews.co.ke/

hotnews

hotnews

Related Posts

Duale’s impeccable record as Majority leader speaks for itself-ODM MPs
Opinion

Duale must be President William Ruto’s “Mr Fix it”

September 15, 2022
Survival, Resilience and Renewal Strategies for MSMEs
Opinion

Survival, Resilience and Renewal Strategies for MSMEs

March 9, 2022
Odinga asks Kenyans to prepare for referendum before December since “Reggae is still on”
Opinion

Luo Nyanza should abandon Raila Odinga and embrace other political leaders

March 10, 2021
Know and Understand Your Children This Christmas
Opinion

Know and Understand Your Children This Christmas

December 1, 2020
Odinga asks Kenyans to prepare for referendum before December since “Reggae is still on”
Opinion

Raila Odinga being conned by Kenyatta’s mandarins- Should learn from History

October 29, 2020
Change strategy on COVID-19, it is not about buying Body bags- Aden Duale tells Kagwe
Opinion

Change strategy on COVID-19, it is not about buying Body bags- Aden Duale tells Kagwe

August 7, 2020
Load More

Stay Connected test

  • 108 Followers
  • 87.1k Followers
  • 143k Subscribers
  • 23.4k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest
MP Didmus Barasa plays cat and mouse game with Karen landlady over rent arrears

MP Didmus Barasa plays cat and mouse game with Karen landlady over rent arrears

July 23, 2019
Panic as KFS set to recover grabbed Langata and Bomas land

Panic as KFS set to recover grabbed Langata and Bomas land

February 28, 2020
DCI Officers hunt for Titus Naikuni in Kajiado over Sh 65 Billion dam scandal

DCI Officers hunt for Titus Naikuni in Kajiado over Sh 65 Billion dam scandal

July 23, 2019
Junior officers, matatu drivers protest Pangani traffic chief’s daily bribe target of Sh 7000-exposure to Covid-19

Junior officers, matatu drivers protest Pangani traffic chief’s daily bribe target of Sh 7000-exposure to Covid-19

April 10, 2020
Securex Agencies CEO Tony Sahni   advises Kenyans on what to do in cases of terror attacks.

Securex Agencies CEO Tony Sahni advises Kenyans on what to do in cases of terror attacks.

0
Ex -MP wants Nyumba Kumi initiative legalized to reduce terror incidences.

Ex -MP wants Nyumba Kumi initiative legalized to reduce terror incidences.

0
Saboti MP urges President Uhuru to include Education in his big four agendas

Saboti MP urges President Uhuru to include Education in his big four agendas

0
Setback to conservationists as Tanzania lifts ban on trophy hunting

Setback to conservationists as Tanzania lifts ban on trophy hunting

0
Kariokor leather Market to employ 10,000 workers after deal with Kenya Leather Development Council- Sonko

Nairobi county employee declines to go on transfer

March 26, 2023
Sakaja unclogs drainage to   Curb Flooding

Sakaja unclogs drainage to Curb Flooding

March 26, 2023
Mt Kenya Leaders tell off Ichungwa, Nyoro-ask them to respect Uhuru

Mt Kenya Leaders tell off Ichungwa, Nyoro-ask them to respect Uhuru

March 23, 2023
Finance CS Ukur Yattani distances himself from grabbed Mombasa road land

Yattani defends Telkom Kenya buyout, says letting the Telco go was endangering National Security

March 23, 2023

Recent News

Kariokor leather Market to employ 10,000 workers after deal with Kenya Leather Development Council- Sonko

Nairobi county employee declines to go on transfer

March 26, 2023
Sakaja unclogs drainage to   Curb Flooding

Sakaja unclogs drainage to Curb Flooding

March 26, 2023
Mt Kenya Leaders tell off Ichungwa, Nyoro-ask them to respect Uhuru

Mt Kenya Leaders tell off Ichungwa, Nyoro-ask them to respect Uhuru

March 23, 2023
Finance CS Ukur Yattani distances himself from grabbed Mombasa road land

Yattani defends Telkom Kenya buyout, says letting the Telco go was endangering National Security

March 23, 2023
Hotnews

Hot News is a Website Publishing News in Kenya. At Hot News, we inform, Entertain and Educate. We seek to ensure you -HEAR THE HUMAN STORY.

Follow Us

Browse by Category

  • Agriculture
  • Business
  • Central
  • Coast
  • Eastern
  • Editorial
  • Education
  • Fashion
  • Food
  • Health
  • Lifestyle
  • Nairobi
  • National
  • news
  • North Eastern
  • Nyanza
  • Opinion
  • Politics
  • Region
  • Rift Valley
  • Sports
  • Travel
  • Western
  • World

Contact Us

Email:info@hotnews.co.ke
Tel No: 0702481580

Recent News

Kariokor leather Market to employ 10,000 workers after deal with Kenya Leather Development Council- Sonko

Nairobi county employee declines to go on transfer

March 26, 2023
Sakaja unclogs drainage to   Curb Flooding

Sakaja unclogs drainage to Curb Flooding

March 26, 2023
  • About Us
  • Advertise
  • Privacy Policy
  • Contact Us

© 2020 HOTNEWS

No Result
View All Result
  • Politics
  • Business
  • Agriculture
  • Health
  • Lifestyle
  • National
  • Opinion
  • Region
  • Video
  • World

© 2020 HOTNEWS

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In