The third National Capital Markets SME Forum was attended by the Micro and Small Enterprises Authority (MSEA) and the Capital Markets Authority (CMA), who worked together to explore the potential and problems facing SMEs in the capital markets.
According to data from the Kenya National Bureau of Statistics (KNBS), the SME sector employs 15 million of Kenya’s total workforce of 18 million people, or about 85% of all non-farm employment.
Access to affordable loans, market access, infrastructure issues, and logistical difficulties are a few of the difficulties MSEs encounter. Building product development capacity is necessary for the MSEs to raise standards and quality.
The adoption of e-commerce depends on company digitization, which most MSEs are unable to execute, missing out on the opportunities that are accessible.
Due to the lack of collateral, a significant number of MSEs in Kenya are informal, have low financial resources, and face significant obstacles when trying to use traditional financial institutions to launch new firms. This financial difficulty is widespread in Kenya, especially hurting rural women entrepreneurs and other socially disadvantaged populations.
Henry Rithaa, CEO of MSEA, noted in a statement that the event brings together important figures in the SME and capital markets sectors to investigate sustainable and cutting-edge financing methods that assist the micro enterprises’ sector.
Rithaa stated that the MSE sector’s capital markets should be strengthened through capacity building, policy-aligned tactics, and other incentives.
Mr. Wycliffe Shamah highlighted that the main issues facing SMEs are the difficulty in obtaining finance, the high cost of capital, and the inability of profitable companies to expand.
In order to develop the MSME sector into a dynamic actor, he said, “Stakeholder engagement within and beyond the capital markets fraternity is important. The capital markets become the new focal point for catalysing the intended transition.”
The Public Offers, Listings and Disclosures (POLD) Regulations have been updated, and Investment Crowdfunding Regulations have been created, according to Mr. Shamiah. These changes have been made to help MSMEs.