- November 17, 2019
- 3 minutes read
How To Stop 1000 SMEs From Dying Daily
1,000 SMEs close down daily in Kenya. 30,000 SMEs close down monthly in Kenya. 450,000 SMEs close down annually in…
1,000 SMEs close down daily in Kenya. 30,000 SMEs close down monthly in Kenya. 450,000 SMEs close down annually in Kenya.
At least 1,000 businesses are set up in Kenya daily. The ratio of one business being set up and another one dying is 1:1.
The SME sector employs 86 percent of Kenyans. The sector contributes 45.6 percent to the GDP and is crucial in sustaining the financial inclusion in Kenya.
The government has remained mute in the tribulations faced by the SME. The truth is, the government is 90 percent to blame for the SMEs dying in Kenya.
The government in power does not determine the success or the failure of a business.President Uhuru Kenyatta
The government of the day has made the business environment so difficult that the SMEs barely have room to breathe.
Kenyan commercial banks have for a long time been reluctant to lend to the SMEs because majority of them are considered as risky borrowers.
Banks have a big role to play in supporting the SMEs in Kenya. Banks are the main avenues that SMEs can use to access credit.
National Assembly repealed the Interest Cap, setting banks free to set interest rates on their loans.Juma
With the repeal of interest rate cap, there is hope that banks will start lending to the SMEs.
The government has a big role to play in helping the SME sector grow. The sector is the most taxed. Why can’t the government harmonize the taxes so that there are no different taxes at different levels.
Do we want to help SMEs?
Let the government create an enabling environment
Let the banks cater for the SMEs by giving the credit.
Let KRA have friendly taxes for the SME