Challenges Facing SMEs In Kisii And How Absa Bank Has Come To Help

Kisii County is sometimes known as the Land of Bananas. It is the only land of Matoke in Kenya, one endowed with hardworking and enterprising Kenyans. Most of the residents in Kisii and small-scale farmers and SMEs.

Just like other SMEs around the country, SMEs in Kisii face a myriad of challenges that have often threatened to bring them to their knees. The coming of Covid-19 and the imposing of restrictions hit the majority of them hard.

Here are some of the challenges that SMEs in Kisii face:

Access to credit: Access to finance is a crucial constraint to SME growth. It is one of the most cited obstacles facing SMEs in Kisii to grow their businesses. Most SMEs in Kisii say that one of the reasons why they cannot access cheap loans to scale up their businesses is that most commercial banks ask for tangible collateral before giving out loans. Most of them lack the fixed assets they can pledge as security for loan applications.

Record-keeping: Most SMEs in Kisii have challenges with record and bookkeeping. Many of them are operating on a trial-and-error basis, leaving them vulnerable whenever help that needs them to show their records comes by. There is a need for them to be enlightened and equipped on why keeping records for any business is the very life of the given business.

Inadequate coaching and training: Running a business is not a walk in the park, however small. In business, we learn along the way. Sometimes we fall, sometimes we rise. SMEs in Kisii, as enterprising as they are, need training and coaching on how to run successful businesses within and without the county. They need to be enlightened on how to invest and how to get funding.

Slow adoption of technology: Digitization has become part and parcel of entrepreneurship in the country. Therefore, any business aspiring to stay on top of the ladder must acquire technology. An excellent example of innovative technology is mobile payments. However, years after the introduction of the product in the country, many SMEs are yet to adopt it.

What is Absa Bank Kenya doing to help?

This Tuesday, Absa Bank Kenya is in Kisii targeting at least 200 SMEs and having them benefit from a business empowerment tour in partnership with the Kenya National Chamber of Commerce and Industry (KNCCI).

The tour kicked off in Kisumu, and is now in Kisii, then headed to Bungoma, Trans Nzoia, and Uasin Gishu Counties, with over 1000 SMEs expected to benefit at the end of the whole tour.

In Kisii, Absa Bank Kenya is landing there with 4 pillars:

Access to Finance – Where women entrepreneurs can access unsecured lending of up to 10 million shillings, payable over 5 years for existing borrowers and 7 million shillings for new borrowers payable in 4 years.

Access to Markets and Information – Done through partnerships with institutions such as KNCCI, GIZ, and ITC/She Trades, empowering businesswomen in Kenya with information that will help them succeed in business through marketplace platforms to address gaps in business, management & leadership skills.

Access to Mentorship and Coaching – Equipping women with critical financial and non-financial best practice skills to address gaps in business, management, and leadership skills.

Related Content: Absa Targets More Than 1,000 SMEs In Western Kenya With Training And Empowerment