On March 2, 2024, KEPSA launched the pre-lending and investor readiness training for small and medium enterprises (SMEs) as part of the Jiinue Growth Program (JGP).  The first cohort attracted 30 entrepreneurs who will participate in the four half-day masterclass on the 2nd, 3rd, 9th, and 10th of May 2024. The 8-module training is one of the technical assistance activities that KEPSA is undertaking to enhance growth (profitability, productivity, income, and job creation) for small and medium enterprises (SMEs) owned or led by young entrepreneurs (18-35yrs) in Kenya. Other technical assistance activities include non-lending and post-lending trainings. These efforts aim to prepare selected SMEs to evaluate their business processes and identify the gaps they need to address to become ready to apply for funding.

SMEs contribute significantly to Kenya's economy, accounting for over 80% of employment creation and approximately 33.8% of Kenya's GDP. However, SMEs face numerous challenges, including limited access to financing, poor infrastructure, restricted market access, regulatory constraints, inadequate access to skills and technical expertise, insufficient business support services, and volatile market conditions. Women and youth-owned SMEs face specific capacity barriers, and existing financing propositions have not incorporated capacity building as a strong pillar. Addressing these challenges is crucial to realizing Kenya's economic potential.

"KEPSA is committed in working with SMEs and different partners to accelerate their growth by linking them to affordable funding and market opportunities, while also enhancing their capacity and encouraging innovation to enhance their global competitiveness," stated Mr. Harrison Ngatia, the Chief SME & Enterprise Development Officer at KEPSA. Mr. Ngatia also emphasized the Jiinue Growth Program and its potential impact on elevating businesses owned or led by young women and men. He urged the entrepreneurs to take advantage of the training to enhance their suitability to access the JGP loan and other financing opportunities that may present themselves in the future.

Speaking at the event, Ms. Laila Kassam, a Credit Officer from Grassroots Business Fund (GBF), guided participants through the loan application, approval process and provided tips on do's and don't. She encouraged SMEs to be thorough in their applications and responsive in the due diligence process, as this not only shortens the disbursement timelines but also makes the whole process seamless.

"The training was highly interactive, providing valuable insights tailored to our perspective. I realized the importance of having all the necessary documents to be investor-ready, along with a well-articulated value proposition. Thanks to KEPSA for providing us with this invaluable opportunity to learn, engage, and network,” said Rebecca Kagendo, the founder, Tikiti Foods.

The 8-module training will cover:

1. Pre-investment Loan Application Form Check List
2. SME Business Model Canvas
3. Master Classes with credit teams experienced in various financing instruments
4. Financial management principles, 5C's of credit
5. Financial Health Check – Books of Accounts
6. Managing Business Growth through Projected Cash Flows
7. Elevator Pitch/Investment Teaser
8. Due diligence- soft skills