- Stakeholders want financing solutions tailored to different MSME needs
- The forum examined ways to reduce lending risks and widen access to capital
- Recommendations will shape upcoming discussions on MSME financing and growth
Stakeholders have called for a re-engineering of Kenya’s Micro, Small and Medium Enterprises (MSMEs) financing ecosystem to increase access to capital, reduce investment risks and provide financing solutions suited to different sectors and value chains.
The call was made during a Stakeholder Consultative Forum on Attracting and Unlocking Private Sector-Led Financing for MSMEs held in Nairobi, bringing together key players from the financial and business sectors.
The forum brought together key players including CMA Board Chair Ugas Mohammed, MSEA Board Chair James Mureu, NSE Board Chair Tom Mulwa, Vision 2030 Delivery Secretariat Board Chair Emmanuel Kombe, Sidian Bank CEO John Okulo, and SME Support Centre’s Linda Onyango, alongside other financial sector representatives.
The stakeholders discussed ways of making financing more accessible to MSMEs, including reducing the risks associated with lending to small businesses and developing funding solutions that reflect the realities of different sectors and value chains.
The forum also examined the role of capital markets in providing growth capital for larger MSMEs, while highlighting the need for better segmentation of businesses to ensure financing products respond to their specific needs.
Participants further stressed the importance of strengthening business development skills to complement the technical training offered through universities and Technical and Vocational Education and Training (TVET) institutions.
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The meeting follows discussions held during Africa Capital Week in Nairobi last week, where industry leaders highlighted the persistent financing gap facing African MSMEs and called for greater use of patient capital and alternatives to traditional bank debt.
The Africa Capital Week discussions also highlighted the importance of investment readiness, stronger governance, transparent financial records and digital transaction histories in helping MSMEs attract institutional investment.
Recommendations from the consultative forum are expected to contribute to discussions during Financial Inclusion Week and the National MSME Summit scheduled for November 2026.
The stakeholders said a more responsive financing ecosystem will be critical to enabling MSMEs to expand, create jobs and play a greater role in Kenya’s economic transformation as the country looks beyond Vision 2030.
By Lizzy Aluga
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