SMEs Set to Benefit From Kes 5B COVID-19 Stimulus Package
Small and Medium Enterprises (SMEs) affected by the spread of COVID-19 are set to benefit from a Ksh 5 billion stimulus package from the government.
Trade Chief Administration Secretary Lawrence Karanja says small businesses manufacturing personal protective gears will be prioritized when disbursing the funds and awarding government tenders.
A report by the Kenya Association of Manufacturers and auditing firm KPMG indicates that 37 per cent of SMEs have scaled-down their production since the first case of COVID-19 was reported in Kenya.
This is due to cash flow constraints as the economy is grappling with reduced business activities as a result of Coronavirus.
To stimulate economic activity, the government announced that it will disburse Ksh 5 billion under the credit guarantee scheme to struggling start-ups hit by the adverse effects of COVID-19.
Karanja says small businesses engaged in the production of personal protective gear to help contain the spread of the COVID-19 pandemic, will be prioritized in the distribution of the funds.
In addition, some of the small businesses will be offered a market of their products by the government.