MKU DVC Dr Mercyline Kamande presents a gift to Elegant Credit Ltd MD,Harrison Mutegi after the conclusion of a day long Symposium on Business opportunities for SMEs at the Mwai Kibaki Convention Center in Thika Town yesterday. Dr Harrison Kinyua Mutegi was the Chief guest. Photos By James Wakahiu
Mount Kenya University (MKU) is exploring strategies on how Small and Medium
Enterprises (SMEs) can ride on Information, Communications and Technology
(ICT) for expansion and sustenance.
The institution’s Vice Chancellor, Prof Deogratious Jaganyi says SMEs are the
backbone of Kenya’s economy, contributing over 30 per cent of the GDP and
employing millions. However, many face challenges such as limited access to
finance, market constraints, and inefficiencies. “Digital technology offers a
transformative solution to these challenges, fostering innovation, efficiency, and
competitiveness,” he says.
“E-commerce platforms and digital marketplaces enable SMEs to reach a wider
customer base beyond their immediate geographical locations. Platforms such as
Jumia, Kilimall, and social media channels like Facebook, Instagram, and TikTok
provide cost-effective marketing tools that increase visibility and customer
engagement,” he says.
A delegate receiving a certificate for participating at the Symposium on Business opportunities for SMEs at the Mwai Kibaki Convention Center in Thika Town yesterday. Photo By James Wakahiu
The VC says adoption of mobile banking and fintech solutions like M-Pesa,
PesaLink, and digital lending platforms allows SMEs to access credit, manage
transactions, and streamline financial operations. These tools help address
traditional barriers such as lack of collateral and cumbersome loan application
processes.
Prof Jaganyi spoke at a symposium hosted by MKU’s School of Business and
Economics under the Theme ‘Leveraging Digital Technology for Growth and
Sustainability of Small and Medium Enterprises (SMEs). The symposium was a
culmination of two years of research that sought to investigate the challenges and
opportunities that digital technology present in transforming the fortunes of SMEs
especially women entrepreneurs.
Photo: MKU Vice Chancellor, Prof Deogratious Jaganyi makes his opening
remarks at the forum.
Making his opening remarks, the VC challenged the students to take advantage of
such opportunities to build their entrepreneurial skills which will guarantee them a
livelihood without depending on employment. The event was held at the MKU’S
Mwai Kibaki Convention Centre.
While disseminating the study findings, the Principal Investigator Dr Mercyline
Kamande, said that while women entrepreneurs are familiar with social media
platforms such as Facebook, Tik-tok and Whatsapp, few of them use the platforms
for business purposes. “The main reason is that the benefits of social media
performance which is measured by likes and followings is not clear. The
entrepreneurs also lack skills to optimize social media for business,” she noted.
To address this gap, a total of 41 small and medium enterprises went through a
training that covered four different areas digital marketing; content marketing,
email and video marketing and social media marketing after which they were
supported for one month through a diary study approach
Dr Kamande, who is also the Deputy Vice Chancellor Academics and Research
Affairs, said the SMEs have financial constraints. “A major challenge of sole
proprietors is that they don’t have time to attend trainings. Women are more
enthusiastic about this programme because their digital skills are lower than that of
the men and they want to catch up,” she said.
Photo/ A section of participants
Dr. Maria Mungara, the co-investigator, appreciated the cooperation the SMEs
showed during the study and noted the sacrifice some of the young mothers made
to complete the training. The university collaborated with industry leaders in
imparting skills to the small and medium enterprises who included traders from the
surrounding communities in Thika as well as MKU students keen to be job
creators.
The Chief Guest, Dr Harrison Kinyua Mutegi who is the Chief Executive and
Managing Director of Ellegant Credit Limited, said that for traders to benefit from
social media, they must be prepared to kick-start their business ideas before
seeking finances from financial institutions since banks do not fund ideas but
rather businesses.
“Businesses start from idea. Many people have ideas but lack knowledge and the
patience on how to launch the business, such as technology, funding and
management skills. We need to convert ideas into action to implement into viable
from baby steps up to maturity level. We encourage people to start from
somewhere; an idea cannot be financed, but a running business can get funding.
We give ICT information and funding but it’s up to you to implement your idea,”
he added.
Kingdom Bank managers Keffas Mugambi and Catherine Nahashon said the forum
indicated how the youth are hungry to get into business. While admitting that the
economy is down, they said some business might need restructuring of their
existing loans. Kingdom Bank is a subsidiary of the Cooperative Bank of Kenya.
“Loan demands rising compared to last year. We offer online banking, loans on
mobile phones and we do not ask for guarantors,” Nahashon said.
MKU students Shadrack Oguta, Maureen Rotich and Faizin Albashir said student
lack knowledge of use social media and the new technology. “Such programmes
expose learners to what is happening, opportunities and what is viable,” they said.
Students are wary of running businesses standing on their own called for more
such programmes, they noted and asked companies to offer more student
attachments and internships to gain hands-on experience.
Prof Jaganyi said the future of SMEs in Kenya is digital. By embracing digital
technology, SMEs can unlock unprecedented opportunities for growth, efficiency,
and sustainability. He also sked SMES to access and use ongoing business research
at MKU.
“As stakeholders, it is our collective responsibility to ensure that SMEs are
equipped with the resources, skills, and infrastructure needed to thrive in the digital
age. Let us commit to leveraging technology for the prosperity of SMEs and the
economic growth of Kenya,” he added.
Photo/ Delegates admiring vaseline products.
Other partners that collaborated with the university to deliver this live-changing
engagement included Unilever Industries (represented by Mr James Okello,
Vaseline Brand, and Caritas Nairobi (represented by Fr Peter Kiarie, Director,
Caritas Nairobi), who all took time to engage the traders and guide them on how to
grow in the digital space, Deans of Schools and Heads of Department, faculty
members and students.
