At least 394,000 people in Kisii County have benefited from Sh400million Individual Hustler Fund since it was launched in November last year through mobile money platforms.
This was revealed by the Principal Secretary, State Department of Micro, Small and Medium Enterprises Development, Ms. Susan Atieno Mang’eni, during a visit to Bonchari constituency to chart a way forward towards fostering sustainable livelihoods by promoting development of Small Enterprises in the area.
Mang’eni who was accompanied by the Micro and Small Enterprises Authority (MSEA) Executive Officer, Mr. Henry Rithaa urged the youth to pay back the grants noting repayment rate currently stood at 56.4 percent in the county.
Mang’eni was speaking at Suneka in Itibo ward at the Constituency Industrial Development Center (CIDC) noted that prompt repayment would raise and residens’ bargaining power for higher limits of the loan to grow their businesses.
She reiterated that the bottom-up model of economic growth by Kenya Kwanza government was the best to spur economic growth by mainstreaming and harnessing the potential of Micro and Small Enterprises.
Mang’eni said they had found good opportunity in leather chain, wood work and vegetables value addition at the center, although there was need for relevant machinery to make the center more viable.
She said the site needed to be expanded to make it a light industry to the level of Kariobangi in Nairobi which she said was the backbone of the city’s economy.
The PS disclosed that concerted effort between the constituency Development Fund, Youth fund, Kenya Industrial Estate and Hustler Fund among others will be utilized to buy machinery and upgrade technology to ensure the CIDC was fully operational.
Mang’eni promised immediate capacity building programs for traders and financial products for value chains especially dairy value chain, edible oil from groundnuts, tea and bananas and other traditional crops found in the area.
Area legislator Dr. Charles Onchoke noted the importance of the collaboration saying it will go a long way in revamping the industrial centre which has been dormant for a long time.
Onchoke said it will also offer employment for the youth in the constituency and reduce poverty levels which currently stands at 43.5 per cent in the area, besides helping achieve the country’s vision 2030 among other plans by the national government.
One leather artisan and trader Shedrack Kimulu appealed to the collaborating partners to move with speed in implementing the plans citing myriad of challenges including competition from the mitumba industry, poor access to credit, high cost of raw materials and outdated technology.
MSEA specifically focuses on providing policy guidance, capacity building, access to finance, and market development support to MSEs at the national level while the Bonchari Constituency Office seeks to address the socio-economic needs of the local population, through targeted development initiatives and resource allocation.
According to a recent report by the Kisii county MSME Development office on capacity Building and Training, MSEA and the Constituency Office recognizes the importance of enhancing the skills and capabilities of MSEs for sustainable growth and can therefore collaborate in organizing training programs, workshops, and mentorship opportunities to empower MSEs with the necessary knowledge and skills in various areas such as entrepreneurship, financial management, marketing, and product/service improvement.
By building the capacity of MSEs, they increase the chances of success and long-term viability of these enterprises through access to Finance and Credit Facilities.
The report states that on Market Development and Linkages, MSEA supports MSEs in identifying market trends, enhancing product quality, branding, and packaging, as well as connecting MSEs to potential buyers, suppliers, and distributors at the national and international levels.
The Constituency Office on the other hand can complement these efforts by facilitating local market access and establishing connections with local businesses, institutions, and government entities to promote MSE products and services within the constituency.
Bonchari CIDC is situated on a plot of land that is roughly 1.5 acres and is currently inhabited by Suneka Juakali Association which has 56 members that engage in a variety of enterprises in the agri-business, trade, service, and manufacturing sectors.
The CIDC’s activities include baking, welding, tent manufacturing, Leather works and value addition to local vegetables among others.
In Bonchari constituency, MSEA has conducted sensitization programs on formalization of MSEs by registering seven associations namely Suneka Juakali Association, Bonchari Subcounty Bodaboda Riders and Owners Association, Bonchari Youth Traders Association, Bomariba Ward Golden Youth Empowerment Association, Bogiakumu Ward Combined Youth Association, Bomorenda Ward Youth Association and Riana Ward Youth Enterprise Association.
Also present during the event was area County commissioner Tom Anjere and Youth Development Enterprise fund CEO Josiah Moriasi among others.
