On March 20, 2024, KEPSA held an engagement with DHL Express Kenya Managing Director Mr. Paul Makolosi to explore areas of synergy, with a primary focus on supporting export-ready SMEs to access global markets through the expansive DHL global presence. The KEPSA team was led by Ms. Mary Ngechu, KEPSA Director – SMEs & Start-ups; Ms. Rose Mwaura, KEPSA Chief Operating Officer; Mr. Harrison Ngatia, KEPSA Head of SME Development, Ms. Lucy Mitei, KEPSA Gender Specialist; and Mr. Levi Injendi, KEPSA SME Trade and Investment Officer.

Ms. Mary Ngechu was keen to note that KEPSA is strategically placed to support SMEs in Kenya to unlock market opportunities that have been made possible through international trade agreements/instruments such as the African Growth and Opportunity Act (AGOA) and AfCFTA. However, she emphasized the importance of identifying ready markets with specific products and ready SMEs with quality products that meet the required international standards.

Ms. Rose Mwaura reiterated the significant role that SMEs contribute to the national economic development while noting their unexploited potential in regard to participation in both regional and global markets. She equally went on to share how DHL through its membership to KEPSA can support in coming up with an e-commerce platform as a contribution to the development and growth of SMEs ecosystem.

Mr. Paul Makolosi indicated that DHL was happy to partner with KEPSA as part of fulfilling its purpose of “Connecting people in improving lives”.  He added that DHL is strategically placed to facilitate trade for SMEs through connecting them to potential buyers across the globe since is a global leader in the logistics industry with a specialty in international shipping, courier services and transportation with a network of 220 countries globally and a reach of 51 countries in the African continent and serve over 3 million customers.

He also walked the team through DHL’s journey and case studies on how they have been able to support and impact SMEs in Kenya, Tanzania and Rwanda to open up export markets in products such as tea, coffee and spices. Through their ‘Power Up Your potential SME Program,’ DHL helps SMEs to export, with a main focus on Business to Consumer (B2C). He went on to acknowledge the challenges SMEs face with post-harvest wastage of up to about 40% of their produce and the need to address the challenge through exploring various international untapped markets. He also provided some of products with high demand in the international market such as dried spices, African print wear including clothes and sandals, processed macadamia, cashew nuts, beauty products such as shea butter, value added tea, value added coffee and handmade leather products.

The meeting deep dived on the importance of KEPSA having a growth-based e-commerce platform targeting to support B2C SMEs and exploring other international e-commerce platforms for product listing as a way of market linkage and supporting SME growth.

The meeting agreed on the following key action points;

• Sign an MOU together with an engagement framework for the two organizations.
• Identification and vetting of at least 200 best export-ready SMEs by KEPSA. This will involve screening based on export readiness requirements and guidelines.
• DHL to provide free training to the identified SMEs through the Power Up Your Potential Program.
• DHL and KEPSA to work together, leveraging their respective brands, to bring on board other partners such as international e-commerce platforms, to enable scaling this initiative.
• KEPSA to identify products targeted for export and markets leveraging on existing trade agreements signed by Kenya such as the AGOA, AfCFTA, agreements with Asian countries such as India.
• KEPSA to leverage on the current ongoing SME programs such as Jiinue Growth Program (JGP) to support the selected SMEs by providing them with funding and technical assistance.