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Kenya keen on transforming smallholder agriculture into modern sector

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The authorities of Kenya purposed to rework smallholder agriculture into a modern sector and SMEs have been recognized as key actors and beneficiaries of the transformation.

Ministry of Trade, Industrialisation and Enterprise Development, Cabinet Secretary, Betty Maina, stated that additional growth of the sector is essential to poverty discount and financial development, and subsequently stays central to the National Agenda, as demonstrated by the presence of Food Security as one of many Pillars within the Big 4 Agenda.

Maina stated this in a speech learn on her behalf by the Micro and Small Enterprises Authority (MSEA) CEO, Henry Rithaa, throughout the launch of the Strategic Plan for the Micro Enterprises Support Programme Trust (MESPT) for the interval 2021-2025.

Maina stated that MESPT is named a champion for Smallholder Farmers and Agri-SME Growth by their work in capability constructing, enterprise advisory providers, agricultural financing options, value-chain and market techniques growth.

SME sector

The CS lauded MESPT for persistently working and constructing a portfolio of Sh6.2 billion sustainable financing which has to this point been disbursed to 36 Financial Institutions and 250,000 end-users by 55 monetary merchandise.

“Most remarkable is the creation of a total of 70,000 jobs at various levels of the market system, the engagement of 100,000 farmers in various value chains and the generation of Kshs.6.8 billion total sales turnover by the targeted small-holder farmers,” stated Maina.

She highlighted that the SME sector in Kenya is the life drive of the Country’s financial system constituting about 98 % of all the companies within the nation using about 15 million Kenyans and generate 80 % of latest jobs yearly.

“I must laud all stakeholders in this sector because despite the challenges currently being faced by SMEs, particularly from the ripple effects of the Covid-19 Pandemic, on aggregate, this segment has still shown a steady growth over the years representing a contribution of nearly 40 percent to the Gross Domestic Product (GDP),” stated the CS.

She stated that some key businesses inside her ministry which can be actively supporting agricultural and its worth addition chain embody the Kenya Export Promotion and Branding Agency (KEPROBA), the Micro and Small Enterprises Authority (MSEA), the Kenya Industrial Estates (KIE), the Kenya Industrial Research and Development Institute (KIRDI) and the Kenya Bureau of Standards (KEBS) amongst others.

MESPT CEO, Rebecca Amukhoye, stated that their goal is to assist small holder farmers and SME’s by worth chain growth by providing reasonably priced credit score to monetary establishments for improved enterprise competitiveness and job creation.

“We are focused on solving pressing challenges such as climate change, access to finance, food safety, women and youth unemployment by providing unique business models which increase agricultural productivity and access to markets,” stated Amukhoye.