This archive report was first published on 20 July 2020.
On July 20, 2020, the Kenyan government unveiled a Ksh 5 billion stimulus package to aid small and medium-sized enterprises (SMEs) struggling due to the COVID-19 pandemic.
According to Trade Chief Administration Secretary Lawrence Karanja, small businesses manufacturing personal protective gear will be prioritized when disbursing the funds and awarding government tenders.
A report by the Kenya Association of Manufacturers and auditing firm KPMG found that 37% of SMEs had scaled down their production since the first case of COVID-19 was reported in Kenya.
The economic downturn has led to cash flow constraints, with many businesses struggling to stay afloat due to reduced business activities.
As part of the stimulus package, the government will disburse Ksh 5 billion under the credit guarantee scheme to struggling start-ups.
Small businesses engaged in the production of personal protective gear will be prioritized in the distribution of the funds, and some will also be offered a market for their products.
