Stakeholders Urged to Strengthen Partnerships and Expand Inclusive Financing to Boost Enterprise Development



The Principal Secretary for the State Department for Micro, Small and Medium Enterprises (MSMEs), Susan Mang'eni, has challenged financial institutions to redesign their lending models to better serve micro, small and medium enterprises, saying affordable and inclusive financing is key to accelerating Kenya's economic transformation.
Speaking as the Guest of Honour during the Kenya Development Corporation (KDC) Customer Networking Forum and Awards in Nairobi, the PS said financial products should reflect the realities faced by entrepreneurs, especially those at the bottom of the economic pyramid. She noted that small traders, including mama mbogas, often use part of their loans to meet essential family needs such as school fees and medical expenses, and lenders should factor in this social impact when designing repayment structures.

Mang'eni called on KDC and other financial institutions to establish a clear business graduation model, where enterprises benefit from affordable financing, mentorship and coaching before transitioning to commercial lending. She emphasized that concessional financing should help businesses grow rather than become a permanent source of support, allowing more startups and young entrepreneurs to access funding.

She also urged financial institutions to channel part of their Corporate Social Responsibility (CSR) budgets towards grants, incubation programmes, business development services and entrepreneurship training to prepare young people, women and persons with disabilities to become investment-ready and creditworthy.
The PS reaffirmed the government's commitment to strengthening the MSME sector through initiatives such as the Green Investment Fund, the Credit Guarantee Scheme and export promotion programmes aimed at helping businesses scale, adopt green technologies and access regional and international markets.
The forum brought together KDC customers, development partners, financial institutions, government agencies and business leaders to strengthen partnerships, exchange ideas and explore innovative financing solutions. The event also recognized outstanding KDC-supported enterprises whose businesses are creating employment, promoting industrialization, expanding exports and contributing to sustainable economic development across Kenya. Mang'eni encouraged entrepreneurs to share their success stories, saying they inspire others, demonstrate the impact of government interventions and attract additional investment into the MSME sector.

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