USAID Loans Sh850 Million to Empower Small Traders in Northern Kenya

In a significant boost to small traders in Northern Kenya, USAID’s Kuza program has disbursed over $6.6 million (approximately Sh850 million) through the Impact for Northern Kenya Fund over the past two years. This substantial funding initiative has benefited more than 7,500 micro, small, and medium enterprises (MSMEs) across five counties—Lamu, Tana River, Garissa, Wajir, and Mandera. The investments have had a profound impact, creating over 13,000 direct jobs across diverse sectors, including horticulture and agro-processing, fisheries and aquaculture, livestock, and dairy.

A notable achievement of the fund is its focus on women-owned businesses. Approximately 71.99 percent of the funded enterprises are led by women, reflecting a commitment to promoting gender equity and empowering female entrepreneurs in the region. This focus has not only supported individual businesses but has also contributed to broader economic development in these underserved areas.

The distribution of funds across the counties reveals a targeted approach to addressing regional needs. Lamu County received the largest allocation of $2.57 million (Sh331 million), followed by Tana River County with $2.52 million (Sh325 million). Garissa County’s MSMEs received $815,684 (Sh105.2 million), while Wajir and Mandera counties were allocated $418,014 (Sh53.9 million) and $318,057 (Sh41.2 million) respectively. These investments have been instrumental in enhancing local economic activities and supporting the growth of small businesses.

A significant portion of the funding has been directed towards agribusinesses, particularly in Tana River County, where over $2.1 million (Sh270.9 million) has been invested. This funding supports various agricultural activities, including horticulture, pastoralism, crop farming, and fishing. The emphasis on agribusiness aligns with the region’s agricultural potential and the need to bolster food security and economic resilience.

Climate-smart enterprises have also received attention, with more than 10 percent of the loans allocated to projects focused on sustainability and environmental resilience. Garissa County, in particular, has been a leader in climate financing, securing $115,630 in loans for climate-smart initiatives. This focus on climate adaptation and mitigation is crucial for ensuring long-term sustainability in a region vulnerable to climate change impacts.

These accomplishments were highlighted during the recent Lamu, Tana River, Garissa, Wajir, and Mandera County Investment Conference held in Lamu County. The conference, organized by USAID Kuza, was themed “Unveiling Opportunities: Redefining Northern Kenya as an Investable Destination.” It brought together around 380 participants, including investors, local entrepreneurs, government officials, and development partners. The conference provided a platform for discussing strategies to create economic opportunities and drive sustainable development in Northern Kenya.

During the conference, Rebecca Miano, Kenya’s immediate former CS Trade and Attorney General nominee, emphasized the potential of Kenya’s livestock sector and the importance of forging partnerships with both domestic and international stakeholders. “Tana River County has all the potential for agriculture,” Miano remarked, highlighting key agricultural projects such as maize production in Galana Kulalu, rice cultivation in Bura, and various irrigation schemes along River Tana. Tana River County Governor Dhaho Godhana also noted the region’s success in exporting green grams to the USA, showcasing the county’s agricultural achievements.

Garissa Governor Nadhif Jama further underscored the importance of strategic investment. “This conference is an opportunity for us to strategize and examine the competitive advantage for each county, then with the proper investment, capitalize on opportunities to make significant contributions to the nation,” he stated. The discussions also touched on recent developments in Kenya’s trade agreements, including the Kenya-UAE Comprehensive Economic Partnership Agreements, which open up preferential export markets for regional goods within the Gulf region.

Key topics at the conference included financing and climate-smart agriculture, with a focus on promoting drought-resistant crops, efficient irrigation systems, and innovative water management strategies such as rainwater harvesting. Solutions like sand dams and water pans were identified as effective measures for conserving water during dry periods, which is crucial for maintaining agricultural productivity in the region.

County speakers and panelists stressed the need for ongoing policy and institutional support from both government and development partners. The role of organizations like USAID Kuza is vital in creating an enabling environment for implementing climate-smart solutions and investments. Supportive policies and continued investment are essential for sustaining the progress made and ensuring long-term economic growth in Northern Kenya.

Looking ahead, USAID Kuza plans to host the Northern Kenya Impact Investment Conference in Nairobi this October. This upcoming event will provide further opportunities to discuss and advance strategies for economic development and investment in Northern Kenya, reinforcing the region’s position as a promising destination for investment and growth.