Kenya Commercial Bank (KCB) has recently entered into a groundbreaking agreement with the Kenya National Federation of Jua Kali Associations (KNFJKA), aimed at facilitating affordable credit and capacity building for members of the umbrella body.
The collaboration framework outlined in the Memorandum of Understanding (MoU) seeks to enhance participation, coordination, collaboration, cooperation, and synergy within the Jua Kali sector. The Jua Kali sector encompasses a diverse range of crafts, including carpentry, woodcrafts, metalworks, soapstone crafts, leather production, textile products, clay/poetry crafts, beekeeping, mechanical engineering, food processing, and electrical sub-sectors.
The Jua Kali sector, despite its prolific contribution to the economy, faces systemic challenges that hinder its full potential. These challenges include the lack of a market for their products, limited access to social protection services like pensions and insurance, inadequate infrastructure, and a lack of recognition for learning and skills upgrading frameworks.
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To address these issues, KCB Bank and the KCB Foundation aim to link the Jua Kali sector to an inclusive financial system that acknowledges their skills and appreciates their contribution to the economy and gives them access to an extensive range of financial and non-financial services provided by KCB Bank, with the aim of stimulating their growth.
During the signing ceremony, Ms. Angela Mwirigi, KCB Bank’s Director of Digital Financial Services, emphasized the importance of injecting market-driven competencies into the Jua Kali sector to rejuvenate and revolutionize it. She highlighted the need for players within the sector to tap into formal entrepreneurial opportunities, ultimately leading to decent work for all.
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Ms. Mwirigi also affirmed that KCB Bank and its foundation would work closely to ensure the members of the Jua Kali sector are well-equipped with the necessary skills to compete favorably on a global scale.
Richard Muteti the CEO of the KNFJKA, commended the partnership with KCB and called for steadfastness in their efforts. He expressed gratitude for the interventions by KCB Bank and the KCB Foundation, stating that they would enhance the capacity of the sector to focus and scale up its entrepreneurial endeavors.
Mr. Muteti further emphasized the importance of nurturing a robust SME sector that guarantees sustained growth. He believes that KCB’s involvement will play a crucial role in unlocking the full potential of the informal sector.
The Economic Survey 2022 reported that 80% of the slightly over 900,000 jobs created in 2021 were in the informal sector, predominantly comprised of small and medium enterprises (SMEs). To ensure the flourishing of these informal enterprises, effective business support across key areas of engagement is essential.
The collaboration between KCB Bank and KNFJKA signifies a significant milestone in the empowerment of the Jua Kali sector. By providing affordable credit and capacity-building opportunities, the partnership aims to uplift the sector, enhance its competitiveness, and contribute to the sustained growth of the SME landscape in Kenya.
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