Bank loans

SMEs Urged to Adopt Bank Loans to Boost Growth

Small businesses were urged to take advantage of available financial solutions offered by banks to boost their business and drive growth.

It was during the opening ceremony of the Inua Biashara Day 2022 forum, organized by the Kenya Bankers Association.

It brought together government, private sector companies and entrepreneurs to find common ground to find financial solutions after the effects of the Covid-19 pandemic.

Speaking at the event Principal Secretary for National Treasury and Planning Julius Muia said banks have enough financial products and if used well can revolutionize the MSME industry.

” Microphone, Small and medium enterprises are key drivers of economic growth but they still struggle to access credit, I urge all banks not to neglect the sector due to their high risk portfolio but to support them,” Muia said. .

Muia also urged lenders to come up with a simplified analysis on how to work with MSMEs on the ground to guide them and develop tailor-made financial solutions.

His sentiments were echoed by the KBA board member I&M Bank CEO Kihara Maina which encouraged MSMEs to apply for the Inuka Enterprise program.

“Difficulty in accessing credit, whether from formal or informal sources, remains a significant constraint faced by MSMEs. The banking sector encourages MSMEs to apply and participate in the Inuka Enterprise program which aims to empower micro-enterprises to formalize, small enterprises to professionalize their management and medium-sized enterprises to optimize their operations and increase their economic productivity,” he said.

During the round table, the entrepreneurs were advised by Patrick NyangwesoDirector of Operations at the Kenya National Chamber of Industry and Commerce (KNCCI), to develop a positive relationship with their respective banks in order to secure loans from them.

“Make sure you develop a relationship with your bank as an MSME. I encourage you to contact your bank, not only when opting for financial services, but also to contact banks to find out about other services they offer .”

Copyright Capital FM. Distributed by AllAfrica Global Media (allAfrica.com)., source English press service