The Jiinue Growth Program (JGP), in partnership with the Mastercard Foundation, is a strategic initiative designed to bridge the funding gap for micro, small, and medium-sized enterprises (MSMEs) in Kenya. The program combines financial support with technical assistance and a coordinated approach among various players in the entrepreneurial ecosystem and aims to create a robust ecosystem where small enterprises, particularly those led by youth and women, can thrive. Over five years, the program targets 225,000 microenterprises and 4,500 small businesses, creating dignified job opportunities for 500,000 young people.

Led by Grassroots Business Fund (GBF) and bringing together six organizations, Kenya Private Sector Alliance (KEPSA), Kenya National Chamber of Commerce (KNCCI), Grassroots Organizations Operating Together in Sisterhood (GROOTS) Kenya, 4G Capital, and Powered by People (PBP), JGP’s collaborative effort demonstrates a new approach to addressing challenges facing MSMEs in Kenya by utilizing non-traditional channels to drive sustainable growth.

Program features:

1.     Young people-centered approach: Exclusively targets entrepreneurs aged 18-35, recognizing the specific hurdles and opportunities faced by young people in business.

2.     Financial support: Access to funding through grants, loans, and other financial instruments tailored to the specific needs and aspirations of young people-led microenterprises.

3.     Technical assistance: Comprehensive support in the form of mentorship, training, and capacity-building programs to empower young entrepreneurs with the skills needed for success.

4.     Ecosystem coordination: JGP acts as a consortium, bringing together seven partners, each contributing distinct expertise and resources to create a unified and effective support system.

5.     Measurable impact: The program aims to impact 225,000 micro-enterprises and 4,500 small businesses over five years, ultimately generating 500,000 jobs for young people and fostering economic growth and sustainability.

Context and Challenges

Kenya's MSMEs are crucial to the economy, contributing 80% of jobs and 33.8% of the national GDP. With an estimated 7.41 million MSMEs in the country, there is vast potential for job creation. Despite their significance, many MSMEs face barriers to growth, such as limited access to affordable credit, lack of formalization, and skill gaps. The COVID-19 pandemic further exacerbated these challenges, leading to the closure of many businesses.

Women and youth-led MSMEs are particularly disadvantaged due to unrealistic business models, inadequate business management skills, and limited access to networks. Existing financial services often fail to provide the necessary capacity-building support, resulting in poor utilization of credit and stunted business growth. JGP addresses these challenges by providing financial loans (ranging from KES 5,000 [$30*] to KES 14 million [$86,050*] per enterprise), technical guidance, and ecosystem coordination to support target MSMEs in Kenya.

KEPSA’s JGP Initiaves

To address these challenges, KEPSA implements a comprehensive package of technical assistance (TA) activities, including training, mentorship, coaching, and benchmarking which encompasses three key areas: pre-lending, post-lending, and non-lending support. 

Pre-Lending Technical Assistance

     Investor Readiness Training: This initiative prepares SMEs for funding by improving bookkeeping, business planning, and understanding available funding opportunities. The training is delivered in sixteen-hour sessions , targeting 5,000 participants.

     Supplier Diversity Preparation: This initiative aims to equip SMEs with the skills needed to access corporate procurement opportunities. The program includes training on procurement requirements, product quality management, and contract negotiation, reaching 500 participants.

     Credit Risk Management Support: KEPSA partners with financial institutions to help SMEs understand and manage their credit risks, reducing default rates and improving access to favourable funding.

Post-Lending Technical Assistance

     Business Growth Support: This component provides SMEs with tools to scale their businesses, enhance operations, and explore new market opportunities. The program, targeting 1,500 participants, focuses on leadership development, contract management, and digital expansion.

     Benchmarking Tours: KEPSA organizes quarterly corporate tours for 500 participants to learn best practices from leading private sector organizations. These tours help SMEs improve operations, reduce costs, and enhance customer satisfaction.

Non-Lending Technical Assistance

     Mentorship Sessions: Quarterly mentorship sessions connect youth-led SMEs with industry leaders to inspire resilience and business growth. These sessions target 1,500 participants, providing insights on overcoming challenges and identifying opportunities.

     Thematic Training Sessions: KEPSA conducts quarterly training sessions on productivity and life skills, addressing common challenges faced by SMEs. These sessions are designed to improve overall business performance and reach 1,500 participants.

     Export Toolkits: KEPSA is developing a comprehensive export toolkits to guide SMEs through certifications, market access, and logistics. The toolkits benefit 500 businesses annually, enhancing their competitiveness in global markets.

•             Gender Mainstreaming: KEPSA is deepening and supporting implementation of the private sector gender strategy.

Ecosystem Change

KEPSA is also provide selected support to SMEs to increase market access, encourage innovation and ecosystem change through policy interventions.

This comprehensive approach to technical assistance empowers SMEs to implement transformative changes in their businesses by enhancing access to finance, markets, and business development services. The  aim is to create a sustainable ecosystem where Kenyan SMEs can flourish, driving economic growth and job creation.