Kenya Government To Guarantee Loans Offered to MSMEs in New Bill
The Kenyan Government is set to act as a guarantor of loans given to Micro, Small and Medium Enterprises (MSMEs) owned by special interest groups who secure tenders with the Government.
Legislators in supporting the changes acknowledged youths, women and persons with a disability were facing challenges accessing finance to do business with the Government.
The enactment of the 2010 constitution set the stage for financial empowerment for youth, women and persons with disability through access to government opportunities.
The idea was boosted by passage of The Public Procurement and Disposal (Amendment) Bill, 2013 which provided that women, youth and persons with disabilities get 30% of all the government tenders.
Despite efforts to enhance access of government opportunities by the special groups, the challenge of financing the tenders has also been real for the small and micro-enterprises.
The National Assembly adopted the public finance management amendment bill sponsored by Finance Committee and is set to take effect if amendments to the public finance management act are assented into law.
Once assented into law, Treasury Cabinet Secretary Ukur Yattani will be required to establish a scheme to ensure they access loans.
Supporting the bill, the Members of Parliament also faulted the delay by Government agencies and County Governments to clear pending bills for the small and micro-enterprises in the counties.