Government disburses Sh7.9b Uwezo Fund to boost MSMEs

LINET WAFULA- KNA

The Government has disbursed Sh7.9 billion to over 82,000 groups across the country under the Uwezo Fund since its inception, Principal Secretary for the State Department of Micro, Small, and Medium Enterprises (MSMEs) Development, Susan Mang’eni, has announced. 

Speaking at the Eliud Kipchoge Showground in Kapsabet during the distribution of Uwezo Fund cheques worth Sh7.1 million to 40 groups in Emgwen SubCounty, Mang’eni emphasized the transformative potential of the fund. 

“Uwezo Fund is a flagship Vision 2030 programme aimed at empowering women, youth, and persons with disabilities by providing access to finances to promote businesses and enterprises,” she stated. 

The fund adopts a bottom-up approach, devolving decision-making to the grassroots and aligning with the Sustainable Development Goals of eradicating extreme poverty and hunger, promoting gender equality, and empowering women. 

Highlighting the importance of small and medium enterprises (SMEs) in Kenya’s economy, Mang’eni noted, “SMEs contribute significantly to our economy. 

Kenya has a potential workforce of 20 million, but only 1 million are in civil service. 

Elevating the SME sector to a primary sector is a step towards harnessing this untapped potential.” 

She called for intentional, business-oriented approaches, adding that government officers would be on the ground for two days to sensitize the public on available opportunities. 

The PS also discussed the achievements of the Hustler Fund, revealing that 24.6 million Kenyans have borrowed from the fund, with 2 million borrowing for business purposes.

“We have disbursed Sh56.7 million, and borrowers are diligently repaying. This culture of borrowing and repaying on time is commendable,” she said. 

To mark the second anniversary of the Hustler Fund later this month, the government will unveil a new product, ‘The Bridge Loan,’ she said. 

This facility will target borrowers with a good repayment history, tripling their loan limits and extending the repayment period to 30 days. 

It will serve as a bridge to the SME loan product, which offers larger sums to upgrade businesses. 

Mang’eni urged citizens to form sector-specific groups, such as those in dairy farming, to help the government identify their needs and secure markets for their products. 

She also highlighted plans to introduce special loans to boost value addition in sectors like dairy, edible oils, and other manufacturing chains. 

Area MP Josses Lelmengit, who attended the event, used the platform to launch the Constituency Strategic Plan 2023–2028.