Small businesses in Kenya are challenged by the lack of essential business support services, especially financial services. Two-thirds of Kenyans do not have access to basic financial services such as banking accounts. Due to the prominent role of agriculture in Kenya’s economy, USAID’s activities to strenthen the agricultural sector play an important role in reducing poverty and encouraging broad-based growth. In addition, USAID supports the growth of microenterprises especially in rural and agricultural areas.
USAID has encouraged the banking sector to greatly expand services to underserved segments of the population. USAID has developed a practical tool for identifying profitable opportunities within value chains and assisting banks and microfinance institutions to design financial products that address specific needs of agricultural value chain microenterprises. In addition, USAID programs have helped increase access to finance for public utilities, including energy, information and communications technology, water and health.
In 2011, banks partnering with USAID extended nearly $117 million in loans to nearly 58,000 beneficiaries, of which 22,000 were microenterprises.
Last updated: December 02, 2013