Over 7,500 micro, small, and medium enterprises (MSMEs) across five northern Kenyan counties – Lamu, Tana River, Garissa, Wajir, and Mandera – have benefited from over $6.6 million (Ksh867 million) lending from USAID Kuza’s Impact for Northern Kenya Fund in the last two years.
Financing through the Impact for Northern Kenya Fund has created over 13,000 direct jobs through in diversified sectors, including horticulture and agro-processing, fisheries and aquaculture, livestock, and dairy. 71.99% of the Fund’s client enterprises are women-owned businesses.
Enterprises in Lamu County received the largest share of the overall loans at $2,575,835, followed closely by Tana River County at $2,527,122.
Garissa County MSMEs received loans totalling $815,684, while entrepreneurs in Wajir and Mandera counties received loans valued at $418,014 and $318,057 respectively.
Agribusinesses in Tana River County received the majority of financing, totalling over $2.1 million in loans to entrepreneurs in horticulture, pastoralism, crop farming, and fishing. Notably, over 10% of the loans went to climate-smart enterprises, with enterprises in Garissa leading climate financing with $115,630 in loans.
These figures were highlighted during the recent Lamu, Tana River, Garissa, Wajir, and Mandera County Investment Conference held in Lamu County on June 27th. The conference which was organized by USAID Kuza and themed Unveiling Opportunities: redefining Northern Kenya as an Investable Destination brought together approximately 380 attendees, 30% of whom were women.
Among the participants were investors, local entrepreneurs, government officials, and development partners who discussed ways to create opportunities and build sustainable development and economic growth in the region.
Emphasizing the potential of Kenya’s livestock production at the conference, Kenya’s Cabinet Secretary for Investment, Trade and Industry, Rebecca Miano said on June 26th, “As a Ministry, we are actively seeking partnerships with domestic and international investors to spur the Northern region’s economic transformation. Kenya has concluded discussions on the Kenya-UAE Comprehensive Economic Partnership Agreements that further opens up preferential export markets for our goods within the Gulf region. These Agreements provide huge export markets for investors in this region.”
Key discussions at the conference included Financing and Climate-Smart Agriculture, promoting drought-resistant crops, efficient irrigation systems, and innovative water management strategies like rainwater harvesting. Sand dams and water pans were identified as solutions to conserve water during dry periods.
County speakers and panelists stressed the need for ongoing policy and institutional support from governments and development partners like USAID Kuza to implement climate-smart solutions and investments, creating an enabling environment through supportive policies.
USAID Kuza plans to host the “Northern Kenya Impact Investment Conference” targeting all of counties of the Frontier Counties Development Council Region in Nairobi in October 2024.
Read: Pastoralists, Farmers In Northern Kenya To Benefit From Kenya-UAE Agreement
>>> USAID LMS to showcase Northern Kenya’s livestock sector gains at the Meat Expo 2024
