USAID lends Sh850m to small traders in northern provinces

More than 7,500 micro, small and medium-sized enterprises (SMEs) in five northern Kenyan counties have benefited from a loan of over US$6.6 million (Shillings 850 million) from USAID Kuza’s Impact for Northern Kenya Fund over the past two years.

To date, the funding has created over 13,000 direct jobs across a range of sectors in Lamu, Tana River, Garissa, Wajir and Mandera counties.

Sectors include horticulture and agro-industry, fisheries and aquaculture, livestock farming and dairy.

At least 71.99 percent of the companies involved in the Fund are women-owned companies.

Businesses in Lamu County received the largest share of the total loans, with $2.57 million (Sh331 million), closely followed by Tana River County with $2.52 million (Sh325 million).

SMEs in Garissa County received loans worth a total of $815,684 (Sh105.2 million), while entrepreneurs in Wajir and Mandera County received loans worth $418,014 (Sh53.9 million) and $318,057 (Sh41.2 million) respectively.

Agricultural businesses in Tana River County received the largest share of the funding, with a total of over US$2.1 million (Shillings 270.9 million) in loans to entrepreneurs in horticulture, livestock, arable farming and fisheries.

Notably, more than 10 percent of the loans went to climate-conscious businesses. Garissa businesses were leaders in climate finance, with $115,630 in loans.

These figures were highlighted at the recent Lamu County, Tana River, Garissa, Wajir and Mandera County Investment Conference, held in Lamu County.

The conference was organized by USAID Kuza and had the theme Unveiling Opportunities: redefining Northern Kenya as an Investable Destination. It brought together approximately 380 participants, 30 percent of whom were women.

Participants included investors, local entrepreneurs, government officials and development partners who discussed ways to create opportunities and promote sustainable economic growth in the region.

Rebecca Miano, former candidate for the position of CS Trade and Attorney General of Kenya, highlighted the potential of Kenya’s livestock sector at the conference and said the government is actively seeking partnerships with both domestic and international parties.

“Tana River County has all the potential for agriculture. We have maize in Galana Kulalu, rice in Bura and several irrigation schemes along the Tana River belt.

“We are currently exporting green gram to the US,” said Dhaho Godhana, Governor of Tana River County.

“This conference is an opportunity for us to develop strategies and explore the competitive advantage for each district, and then with the right investments, capitalize on opportunities to make a significant contribution to the nation,” said Garissa Governor Nadhif Jama.

“Kenya has concluded discussions on the Kenya-UAE Comprehensive Economic Partnership Agreements, which will create further preferential export markets for our goods within the Gulf region.”

These agreements provide huge export markets for investors in this region.

Key topics at the conference included financing and climate-smart agriculture, promoting drought-resistant crops, efficient irrigation systems and innovative water management strategies such as rainwater harvesting.

Sand dams and water pans were identified as solutions to conserve water during dry periods.

Speakers and panelists from the region emphasized the need for continued policy and institutional support from governments and development partners such as USAID Kuza to implement climate-friendly solutions and investments and create an enabling environment through supportive policies.

USAID Kuza presents the plans for the Northern Kenya Impact Investment Conference in Nairobi in October.