Absa Bank Kenya has pledged Sh100 billion in a bid to foster the growth of Micro, Small and Medium Enterprises (MSMEs) across various value chains for the next three years.

Absa says the funding is meant to enhance the resilience of MSMEs by boosting access to working capital in what the bank says is its role to spur economic development in Kenya.

Absa Bank Kenya MD and CEO Abdi Mohamed, who was speaking at the bank’s Annual Business Club Forum, said the firm will continue to play a key role in the growth of MSMEs.

“As a Bank, we are fully cognizant of the immense contribution that MSMEs make to Kenya’s economy through job creation and their contribution to the GDP,” said Abdi.

He added, “We particularly recognise the need to avail sustainable finance solutions and expertise to cushion these businesses in times of unexpected downturns.”

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Abdi said the move complements the bank’s four-pronged approach for its SME customers, including access to markets, information, mentorship, coaching, and sustainable finance.

Cooperatives and MSMEs Development CS Simon Chelugui said the ministry set several key measures to create an environment in which MSMEs can thrive to realise their full potential.

In a speech read on his behalf by Micro and Small Enterprises Authority Director General and CEO Henry Rithaa, Chelugui said his ministry is stimulating the MSMEs value chains.

“The priority value chains we are focusing on include leather, cotton, dairy, edible oils, tea, rice, the blue economy, minerals, forestry, as well as building materials,” said Chelugui.

The CS added, “We believe these sectors have the potential to create millions of jobs far beyond what we have recorded so far.”

The forum in Nairobi dwelt on available opportunities for MSMEs to enable them to become more resilient and to overcome the current economic challenges facing businesses in Kenya.

“In this so-called Brittle, Anxious, Non-linear, and Incomprehensible (BANI) world, we have the opportunity to reinvent, reimagine, and reinvigorate our businesses to thrive in this new reality. As we navigate through these uncertain times, we must not only adapt but also embrace these changes and seize the opportunities that come with them,” added Abdi.

Absa Bank Kenya recently unveiled the Wezesha Stock proposition, a real-time digital platform, providing inventory management and trading for SMEs operating in Kenya.