USAID loans Sh850m to small traders in Northern counties

 

Lamu County Governor, Issa Timamy and Nadhif Jama, Governor, Garissa County (centre) 

Over 7,500 micro, small, and medium enterprises (MSMEs) across five Northern Kenyan counties have benefited from over $6.6 million (Sh850 million) lending from USAID Kuza’s Impact for Northern Kenya Fund in the last two years.

So far, the funding has created over 13,000 direct jobs in diversified sectors in Lamu, Tana River, Garissa, Wajir, and Mandera counties.

The sectors include horticulture and agro-processing, fisheries and aquaculture, livestock, and dairy.

At least 71.99 percent of the Fund’s client enterprises are women-owned businesses.

Enterprises in Lamu County received the largest share of the overall loans at $2.57 million (Sh331 million) followed closely by Tana River County at $2.52 million Sh325 million).

Garissa County MSMEs received loans totaling $815,684 (Sh105.2 million), while entrepreneurs in Wajir and Mandera counties received loans valued at $418,014 (Sh53.9 million) and $318,057 (Sh41.2 million) respectively.

Agribusinesses in Tana River County received the majority of financing, totaling over $ 2.1 million (Sh270.9 million) in loans to entrepreneurs in horticulture, pastoralism, crop farming, and fishing.

Notably, over 10 percent 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.

The conference was organized by USAID Kuza and themed Unveiling Opportunities: redefining Northern Kenya as an Investable Destination brought together approximately 380 attendees, 30 percent 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 economic growth in the region.

Emphasizing the potential of Kenya’s livestock production at the conference, Kenya’s immediate former CS Trade and Attorney General nominee Rebecca Miano said the government is actively seeking partnerships with domestic and international.

“Tana River County has all the potential for agriculture. We have maize in Galana Kulalu, rice in Bura and multiple irrigation schemes along the belt of River Tana.

"Currently, we are exporting green grams to the USA,'' Tana River County governor Dhaho Godhana said.

“This conference is an opportunity for us to strategize and examine the competitive advantage for each county, then with the proper investment, capitalize on opportunities to make significant contributions to the nation,'' Garissa governor Nadhif JamaGovernor said.

"Kenya has concluded discussions on the Kenya-UAE Comprehensive Economic Partnership Agreements that further open 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 will host plans for the Northern Kenya Impact Investment Conference in Nairobi in October.

by VICTOR AMADALA