COMESA-Leather and Leather Products Institute (COMESA/LLPI) facilitated discussion for a pilot revolving fund scheme for SMEs in leather footwear and leather goods in Kenya was held at the Ministry of Industrialization and Enterprise Development, Nairobi, Kenya, on August 21, 2015.
Hon. Mr. Adan Mohamed, EBS, Cabinet Secretary for Ministry of Industrialization and Enterprise Development chaired the meeting. Top PTA bank officials, Mr. Admassu Tadesse (CEO and President-PTA Bank) and Ms Patricia Onyango (Senior Project & Infrastructure Finance Department-PTA Bank) were in attendance of the meeting. Participants of that discussion were also drawn from the Ministry of Industrialization, Mr. Korir (Industrialization Secretary), Mr. E.N Kimurt (Director of Industries) and Mr. Rajjev Atora (Board Director , Export Zones Authority and Advisor for Textile Value Chain); Kenya leather Development Council (KLDC) (the Institute responsible for the Development of the Leather sector in Kenya), Mr. Titus Ibui (KLDC Board Chairman) and Mr. Charles Mwangi (Acting CEO-KLDC) and COMESA/LLPI (the facilitating institution ), Prof. Mekonnen Hailemariam (Leather Value Chain Expert and Personal Assistant to the Executive Director).
The discussion was very fruitful and resulted in initial ideas for 300.000 USD availed for the establishment of a revolving fund scheme. The PTA bank, local financial institution (to be identified) and the Ministry of Industrialization and Enterprise Development will jointly materialize the revolving fund scheme. The modus operandi, including the KLDC’s role in the implementation of the revolving fund scheme, will be worked out in subsequent meetings.
The implementation of a revolving fund scheme, which is the first of its kind and initiated by COMESA/LLPI, is expected to provide the optimal socio-economic benefits to SMEs through enhancing their value addition and competitiveness. It will also stimulate the involvement of the financial sector (banking institutions) in order to support the government's efforts of promoting Industrialization through SMEs development. COMESA/LLPI takes pride of this discussion that will provide basis of the SME support of the leather sector, in particular in financial management profile, as a model for its subsequent similar initiatives in other LLPI member countries.