MESPT’s Contribution In The MSME Sector

Posted: May 16, 2020
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Spurring Economic Growth

For more than a decade in existence, MESPT has purposefully been at the forefront supporting the growth and development of micro, small and medium enterprises through creation of employment and poverty alleviation. This is achieved through empowerment of smallholder farmers and wholesale financing to MSMEs. The Trust’s integrated business solutions range from finance, markets and capacity building for sustainable development. To contribute towards the achievement of Sustainable Development Goals (SDGs), MESPT has adopted different approaches that have seen job creation and increase in incomes.

Development Approach

MESPT is predominately involved in agriculture value chains development and financing of intermediaries for onward lending to micro-enterprises. The Trust has a sustainable business model that links producers to markets and financial intermediaries through a three-tier model. The underlying objective of this unique model is to create linkages through products and services such as capacity building, grants, loans and equity. There are also non-financial services such as partnerships and collaborative programmes that enable beneficiaries access capital, increase agricultural productivity and incomes and access markets.

The Wholesale Lender with a Difference

MESPT is one of the major reputable wholesale lenders in Kenya and offers loans to Financial Intermediaries such as Saccos, credit only institutions as well as microfinance organizations and banks. This approach has progressively spurred economic growth, largely in the micro, small and medium enterprise sector. To add, the impact of the designed products and services is on an increasing trend, thereby cascading innovation, enterprise, market-building strategies and linkages. As a result, this has advanced MESPT’s vision and mission towards alleviation of poverty and helping build a more prosperous society.

Since inception, the Trust has disbursed cumulatively more than Ksh5.4 billion for the development of micro, small and medium enterprise through loans, which have reached over 20,000 enterprises. Financial intermediaries benefit from MESPT through access to three major products namely: General Loan, which is meant to support enterprise development; Value Chain Loan, which supports agribusiness ventures; Green Financing Loan, which supports the acquisition of green technology solutions focusing on renewable energy, waste management, clean and water resource management; and Asset Investment, which focuses on acquisition of productive assets for farmer cooperatives. The results derived from this product offering has been holistic private sector support for sustainability.

Championing Climate Change Mitigation

For years now, adverse droughts, storms and flooding are becoming annual calamities. The little rains and prolonged dry spells have significantly affected production of many value chains. This has led to low incomes, high cost of food as well reduction in productivity in the agriculture sector. Embracing climate sensitive green solutions has however been one of the ways to confront these challenges while looking forward to better days in the future.

MESPT, through one of its pillars dubbed Green Growth Development, has been promoting resource efficient, clean and climate sensitive technologies and solutions to improve agriculture yields and frequent crop failures. This is done through partnerships with the private sector players, collaborations with the local communities and the public sector, especially county governments. As a result, thousands of sustainable jobs have been created for MSMEs. This direction has registered mind-set change of smallholder farmers from depending on rain-fed agriculture.

Impact of MESPT work

Through its sustainable approaches, MESPT has created over 77,000 jobs for the micro, small and medium enterprises, enabling many to access both the local and international markets. As a result, MSMEs working with the Trust have realized improved livelihoods through diverse incomes. This has also seen the individual entrepreneurs scale up their enterprises to a different level and a far-reaching effect on surrounding communities also recorded. Such results have been possible due to the strengthening of intermediaries who provide financial or business development services, thereby improving the performance of enterprises. MESPT strategy of alleviating poverty and ensuring sustainable livelihood is a living mission!