INAUGURAL INUA BIASHARA DAY 2019 AND LAUNCH OF STAWI
Remarks by Dr. Patrick Njoroge
Governor, Central Bank of Kenya
Safari Park Hotel
November 6, 2019
As Prepared for Delivery
I am delighted to be here this morning at the Inaugural Inua Biashara Day 2019
and the launch of the lending product Stawi. This is a momentous occasion for our
banking sector that has come together for the first time to showcase what they are
doing for the Micro, Small and Medium-sized Enterprises (MSMEs). I am grateful
to Your Excellency for gracing this occasion but more importantly for consistently
challenging the banking industry on financing MSMEs. Let me also commend all
the banks, the Kenya Bankers Association, and the various Government agencies
for putting together today’s event.
MSMEs are the backbone of Kenya’s economy, contributing about 28.4 percent of
the Gross Domestic Product. The approximately 7 million MSMEs are
concentrated in the manufacturing, wholesale and retail trade, and transport and
storage sectors. The resilience of MSMEs has indeed been a key strength of
Kenya’s economic growth in recent years.
Earlier this year, the Central Bank of Kenya (CBK) made a deliberate effort to go
where the action is to understand the needs of the MSMEs. We met vibrant traders
in Gikomba, agile mechanics on Ogopa Lane, Kariokor, traders in the bustling
Kondele Market in Kisumu, and creative furniture traders on Ngong Road. All of
them need finance that is convenient, accessible and preserves their dignity as they
may not fit the conventional brick-and-mortar bank model. In short, they need
‘anytime anywhere’ financial services that are aligned to the nature of their
enterprises.

Following this listening tour, CBK used its convening power to bring banks to the
table to provide a solution for MSMEs. I was pleased to see a consortium of five
banks stepping up to the plate when we did a soft launch in May 2019. It is
gratifying to note that many more additional banks have joined the initiative.
Stawi rides on technology and innovation to provide a cost effective ‘anytime
anywhere’ credit product that is tailored to the needs of MSMEs. Most
importantly, it aims at not just providing finance but also supporting them to
enhance their credit worthiness, business skills and ultimately grow their
businesses. The testimonies we have heard confirm the realization of the vision of
shared prosperity.
Over the last few years, Kenyans have expressed concerns on what they perceived
as the alienation of banks from meeting their needs. Today’s event and launch is
proof that banks have heard the cry of Kenyans. Over the last three years, banks
have reviewed their business models to put the customer at the center. MSME’s
have not been left behind and the variety of products targeting this sector and
exhibited here today is welcome.
Today is really just the beginning for banks in scaling up support to MSMEs. A lot
more remains to be done, not just through finance but also through capacity
building, enabling access to markets, promoting innovation and most importantly
through creating an enabling business environment.
Feedback from MSMEs will also be essential for banks to calibrate their products.
By effectively serving the MSME sector, banks will truly be working for and with
Kenyans. With the advances in technology and innovations, this is the vision that
the banking sector must achieve.
Thank you!