USAID rallies government and private sector to invest more in Northern Kenya

NAIROBI, Kenya, September 22

USAID Kuza has rallied financiers to step up funding to the Northern part of Kenya in a bid to enable sustainable development in the region.

During a two day conference dubbed “Why Northern Kenya, Why Now” hosted by USAID Kuza, the private sector partners agreed that funding is a cardinal hindrance to development in Northern Kenya. USAID Kuza has previously invested over $14 million (Ksh2.06 billion) in small and macro enterprises in the region, touching the lives of over 9000 SME’s. The fund cuts across an array of sectors including agriculture, livestock, energy, climate, and tourism and has created over 15500 jobs in the ASAL (Arid and Semi-Arid Lands)counties  of  Garissa, Isiolo, Lamu, Mandera, Marsabit, Samburu, Tana River, Turkana, Wajir and West Pokot.

USAID Kuza Chief Of Party Wyanie Bright observed that the funding will play a critical role in the economic growth of Northern Kenya. “The ‘missing middle’ small and medium-sized enterprises (SMEs) struggle to access appropriate financing to support their growth and development. By addressing the financing needs of the missing middle, stakeholders can empower SMEs in Northern Kenya to grow, innovate, and create jobs, ultimately driving economic development and social progress in the region’s growth and sustainable development of the region,” she said.

 “While there is a concerted effort by the government, the development sector, and the private sector to grow the number of enterprises operating in Northern Kenya, there is a need to match their demand for financing through financing the financiers. 59 per cent of the lending has been to women-owned enterprises and women groups,” she added.

On her part, East African Community CS Rebecca Miano has committed on government’s support on scaling up the investment environment in the ASAL regions.

“Its part, the Government will continue improving the investment environment for accelerated prosperity of the ASALs. This includes reviewing existing laws and regulations as well as practices that hinder ease of doing business for private sector players and public-private sector partnerships to thrive,” she said. The summit also discussed greening the North as a way to enhance sustainable job creation, cognizant of pastoralism being the dominant economic activity of the ASAL region.