Linet Okemwa, a 26-year-old single mother of two who lives with a disability, runs a small homemade detergents business in Bahati Sub-County, Nakuru County, which supports her family. In October 2023, Linet attended group dynamics and financial literacy training conducted by GROOTS Kenya a consortium member of the Jiinue Growth Program (JGP), which bridges the funding gap for micro, small, and medium-sized enterprises (MSMEs) in Kenya.
Before joining JGP, Linet’s weekly earnings were just KES 1,500. In 2023, she received a KES 15,000 Jiinue working capital loan through the 4G Capital lending window, which she was expected to repay in three months.
MSMEs play a critical role in Kenya’s economy, contributing up to 80 percent of employment and 40 percent of the country’s GDP. With an estimated 7.41 million MSMEs in the country, there is vast potential for job creation. Despite their importance, MSMEs, especially those led by young people face significant obstacles, including limited business skills, access to networks, and access to financial resources. In response to this, JGP combines financial support with customized technical assistance and a coordinated approach among various players in the entrepreneurial ecosystem. The program supports young women and men to improve their resilience and livelihoods by increasing their earnings, life skills, and business skills, thereby contributing directly to their pursuit of finding dignified and fulfilling work.
At the training, Linet gained valuable financial skills. Additionally, the financial support transformed her business, increasing her weekly income from KES 1,500 to KES 4,000. With the additional earnings, she purchased a smartphone to advertise her products on social media, boosting her online presence.
JGP offers short- and medium-term loan capital to help young men and women-led micro-enterprises and small businesses to grow and become sustainable. The program has tech-enabled platforms for loan origination and servicing, making provision of short- and medium-term financing more efficient, especially for young people who are more tech-inclined. This funding covers short- and medium-term working capital loans, purchase order financing, and asset financing. Most of the financing offered includes a mix of secured and unsecured debt, along with technical assistance which is emphasized as a means of making sure that those who benefit from it are trained in financial management before and after accessing the funds.
Before joining JGP, Linet’s disability caused her to struggle with social anxiety, limiting her sales potential. However, she overcame this challenge, gaining confidence and communication skills. She was appointed the chairperson of her group, further enhancing her self-esteem.
Linet credits GROOTS Kenya for this transformation, saying, “GROOTS imenifanya we na confidence Kulikov kitambo na sasa Niko more open-minded. Nimeanza kufikiria jinsi naweza weka biashara engine na kuweka duka ili niche muzungu sana.” (Translation: “GROOTS has given me the confidence I didn’t have before. I am now more open-minded and thinking of starting another business and opening a shop, so I don’t have to move around so much.”)
The program partners with the Mastercard Foundation and consists of a consortium of partners who include Grassroots Business Fund supported by DT Global in project management, 4G Capital, Powered by People, Kenya Private Sector Alliance, Kenya National Chamber of Commerce and Industry, and GROOTS Kenya. This collaborative effort brings a wealth of expertise and resources to the table that allows the program to tap into different skills and resources to ensure it provides a comprehensive solution to the financial and technical challenges that MSMEs face.
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