*ABSA Bank Kenya and Visa Launch Business Credit Card to support MSMEs Forum.* The Principal Secretary for the State Department for Micro, Small and Medium Enterprises (MSMEs), Hon. Susan Mang’eni has lauded the joint initiative between Absa Bank Kenya and Visa Kenya for launching Absa Business Credit Card at the SME Business calling it a powerful demonstration of how public-private collaboration can unlock the full potential of our MSMEs as drivers of economic growth. Kenya’s MSME sector contributes over 40% of the country’s GDP and employs a significant portion of the population, especially women and youth. However, Mang’eni noted that while Kenya leads in innovation and entrepreneurial spirit, the sector still lags global benchmarks in GDP contribution. “In developed economies such as Germany, the U.S., and France, SMEs power more than 60% of GDP. Outlining bold reforms undertaken by the government, PS Mang’eni emphasized the administration’s commitment to creating a business-friendly environment through five core pillars, including agricultural productivity and structural reforms within the MSME sector, affordable housing and healthcare. As the government, we are implementing bold and deliberate reforms to unlock MSMEs' growth. We started by advocating for decriminalization of work,so that every Kenyan feels comfortable within their space. Speaking at the forum, John Njoroge, Visa Kenya Country Manager acknowledged the daily challenges that SMEs face, including limited access to finance and navigating the ever-evolving digital landscape. However, he emphasized that it is through innovation, mindset change, and partnerships that these challenges can be transformed into opportunities. According to Njoroge, the card is a business partner in your pocket that will provide access to working capital, flexible repayment options, detailed expense tracking, enhanced security features, and global acceptance. Absa Bank Kenya’s Director of Business Banking, Elizabeth Wasunna, echoed this sentiment, emphasizing Absa’s ongoing commitment to providing financial tools that drive business resilience and prosperity. The institutional framework is helping us to coordinate the sector, coordinate and connect our MSMEs to opportunities. So, the second commitment was to carry out reforms around in our policies, looking at some of those taxation, for example regulatory frameworks that were being seen to be a bit too aggressive, easing the cost of doing business and even the entry into business. We are really engaging with the private sector unlike in the past where MSMEs were just like a function of the private sector. The government is reviewing the MSME Policy 2020 to align with emerging economic realities, with plans to launch a revised framework by the end of the year. On digital superhighway, the government has onboarded over 20,000 government services on the e-Citizen platform, allowing entrepreneurs to register businesses, apply for licenses and access credit from a basic mobile phone. “This is not just about convenience it’s about reducing costs, saving time, and increasing access,” she said. Urging other county governments to follow Nairobi’s example and simplify procedures to ease the entry and operation of MSMEs across the country. The other commitment was to enable access to finance, unlock access to affordable credit. We cannot generalise going to finance businesses, every business is different, it exists within different space and then the prospects are also different, so we need to keep on understanding, go to where these enterprises are, understand the situation and come up with a financing model that can meet their needs. To date, over 25 million Kenyans have accessed Ksh. 70 billion through the Hustler Fund, with an 80% repayment rate. In its new phase, the Fund is offering increased credit limits up to Ksh. 150,000 and integrating healthcare financing through SHA’s Lipa Pole Pole loan scheme for universal health coverage. “We have successfully developed credit histories for over 26 million adults, enabling banks to offer fairer and more accurate assessments of creditworthiness,” she stated. Mang’eni underscored the urgency of scaling enterprises to absorb Kenya’s rapidly growing youthful workforce. “Every year, 1 million youth enter the job market, yet only 200,000 are absorbed. Of the 20 million in the workforce, only 3.5 million are formally employed. We must support MSMEs to bridge this gap,” she urged. PS Mang’eni applauded Absa and Visa for launching the Business Credit Card, describing it as a tool for growth, not just a product that is designed to streamline business expenses, improve cash flow, and provide global acceptance an essential feature for MSMEs exploring cross-border trade. “As government, we are ready to co-create programs, support research, and shape policy dialogues with the private sector for the benefit of MSMEs. Let us innovate, collaborate, and grow together for the growth of enterprises.