Murang’a: Bankers have called on the government to scale up financial support for Micro, Small and Medium Enterprises (MSMEs), saying the sector remains the backbone of Kenya’s economy. Speaking during the awarding of a Sh1 million prize to the winner of the recently concluded Shinda Milioni promotion campaign by IandM Bank at Kenol Branch in Murang’a, the bank’s Central Region Managing Director Michael Muchoki emphasized the importance of empowering small businesses for sustaining national growth.
According to Kenya News Agency, Muchoki highlighted that MSMEs are crucial drivers of the economy and require impactful and consistent financial support along with other incentives. He pointed out the necessity for the government to enhance access to affordable loans and financial facilities, enabling small businesses to multiply their income and significantly contribute to the country’s economic development.
Muchoki also commended the government’s efforts in lowering the Central Bank lending rate, noting that this policy shift has allowed commercial banks to gradually reduce interest rates for loans. “We encourage the government to continue with such incentives because they help banks lower lending rates, making credit accessible to more small business owners,” he added. He further stressed that affordable borrowing for SMEs leads to their growth, which, in turn, boosts the economy.
IandM Bank’s Head of SMEs, Eunice Kinyanjui, addressed the ongoing challenges hindering the growth of small enterprises, such as limited financing and inadequate business skills. She remarked that many SMEs fail not due to a lack of ideas, but due to insufficient financing and professional business management knowledge. Kinyanjui explained that IandM Bank provides training, skills, and easy access to banking services through online and mobile platforms to support their customers.
Additionally, Kinyanjui mentioned that IandM Bank has reduced and, in some cases, waived certain banking costs to alleviate financial pressure on entrepreneurs and encourage more of them to engage with the formal financial system.
The winner of the Sh1 million grand prize, Francis Kanyi, a small-scale entrepreneur and farmer from Kangema, expressed immense gratitude, describing the prize as a life-changing moment. Kanyi’s family business was devastated by a fire last year, leaving them struggling to recover. He plans to use the prize money to revive his business and get back on his feet.
Kanyi also called on the government to create a more enabling environment for small traders by reducing taxes and revenue obligations on small businesses. He emphasized that when small enterprises are relieved of heavy charges, they have the potential to grow and employ more people.
The Shinda Milioni campaign is part of IandM Bank’s broader strategy to deepen financial inclusion and support the growth of MSMEs across the country.
