KBA, KIM Sign MoU to train micro, small and medium sized enterprises

KBA, KIM Sign MoU to train micro, small and medium sized enterprises

The Kenya Bankers Association (KBA), the banking industry umbrella body, and the Kenya Institute of Management (KIM) have signed a Memorandum of Understanding (MoU) towards the development of a curriculum tailored to Micro, Small and Medium Sized Enterprises (MSMEs) to be coordinated under KBA’s Inuka Enterprise Development program.

The implementation of the program is a show of the banking industry’s commitment to empower MSMEs to grow their businesses to profitability and stability. The banking industry, through KBA, last year pledged to establish the program after calls from the public to assist MSMEs in their ability to access capital.

The KBA Inuka Enterprise program will be available during the third quarter of this year free of charge to MSMEs via an online platform that the Association will launch to deploy the training material that will be developed by KIM. In addition, the Association will hold targeted face-to-face training in Nakuru and Nairobi.

The signing of the MoU comes at a time when MSMEs have faced difficulty in accessing credit from banks as a result of the enactment of the 2016 Banking (Amendment) Act.

“According to the Central Bank of Kenya, lending to micro, small and medium-sized enterprises fell by 5.7 per cent or approximately Sh13 billion between August 2016 and April 2017,” said KBA Chief Executive Officer Habil Olaka.

Kenya currently leads in Africa in terms of the proportion of bank capital that is directed to the SME sector. Total commercial bank lending to MSMEs was approximately Sh233 billion as at August 2016.

“This drastic move away from MSMEs to larger companies and Government was due to the industry shifting towards less risky investments following the enactment of the 2016 Banking (Amendment) Act. We therefore need to assist this segment in derisking their businesses so they can access the capital they need to run and grow their businesses,” he said.

“KIM and KBA share mutual interests in building the capacity of MSMEs. This is engrained in our various initiatives and KBA is pleased to have KIM on board to help develop the industry’s training program,” added Mr. Olaka.

KIM is a professional membership-based organization that builds individuals and organizations capacity through practical industry-based training programmes that drive business excellence in Africa. With its 22 branches, countrywide and over 60 years’ experience in knowledge industry, KIM has successfully helped organizations drive global competitiveness through Organizational Performance Index (OPI) which leads to the prestigious annual Company of the Year Awards (COYA) and SME of the Year Awards (SMOYA).

“This Inuka Enterprise Program is a demonstration of the key role MSMEs play in fulfilling Vision 2030 and reaffirms KBA and KIM’s commitment to the development of Kenya’s economy. We are delighted by KBA’s decision to work with KIM and assure you that we will always live up to our brand promise, which includes collaborating with the like-minded partners like KBA,” said Mr. Ndegwa.

Previous Ministers commit to ensure food security as Kenya eyes drought recovery
Next Raila goes for Uhuru’s key allies

You might also like

Latest 0 Comments

News headlines- Ruling on doctors’ union officials jail sentence on Friday 3rd February 2016

Ruling on doctors’ union officials jail sentence on Friday Striking doctors’ union officials will know their fate on Friday when the court makes a ruling on their suspended one-month jail sentence. Employment and

News 0 Comments

Surrender or be killed, IS jihadists told

The prime minister of Iraq has urged the Islamic State group to surrender as government troops close in on its last urban stronghold in the country, Mosul. Haider al-Abadi appeared

Business 0 Comments

KCB announces plans to lay off workers as banking sector players move to stem losses

Unspecified number of KCB employees are likely to be laid off August 2016, a move expected to eat into banks’ margins and profits. Kenyan lenders have also turned to mobile

0 Comments

No Comments Yet!

You can be first to comment this post!

Leave a Reply