The Kenya Private Sector Alliance (KEPSA) conducted a 2-day Investor Readiness Business Training for SME Trainers. The training took place on April 11 and 12, 2024, in Nairobi. The training brought together 32 SME trainers who were taken through rigorous 8-module training to equip them with the necessary knowledge, skills, and tools to effectively improve the chances of SMEs to secure funding.

Statistics show that 46% of MSMEs close within their first year of establishment, and up to 80% wind up before reaching their fifth birthday. This trend is attributed to various factors, with access to finance/capital being a primary concern. Credit plays a crucial role in the success of any business in Kenya, yet it remains elusive for many small businesses. Additionally, MSMEs owned by women and youth encounter specific capacity barriers, such as unrealistic business models, skill and knowledge gaps in business management, lack of access to networks, and operating in unprofitable or underperforming value chains.

In recent years, several financial providers have developed value propositions targeting women and youth entrepreneurs to bridge the financing gap. However, the uptake of these financing opportunities remains low, highlighting a disconnect between the demand for finance and the availability of financing options. Existing financing propositions often overlook capacity building as a crucial component for utilizing credit effectively. Consequently, MSMEs that successfully access financing often fail to achieve upward growth.

To address this challenge, KEPSA will be implementing various technical assistance (TA) activities, including training, mentorships, coaching, and benchmarking tours. The Investment Readiness Program is part of the training and will involve an array of pre-lending, post-lending, and non-lending activities spearheaded by SME Trainers. This will not only prepare entrepreneurs for funding but also equip them with strategies to enhance and seize market opportunities, as well as provide guidance on financial management.

The training was conducted by industry expert Catherine Gitonga and team who covered the following modules;

• Pre-investment Loan Application Form Check List
• SME Business Model Canvas
• Factors Contributing to SME Creditworthiness
• Financial Health Check – Books of Accounts
• Managing Business Growth through Projected Cash Flows
• Elevator Pitch/Investment Teaser and Data Room progress review
• Master Classes with credit teams experienced in various financing instruments
• Due diligence- soft skills