Use State incentives to grow, SMEs told
Small and Medium Enterprises (SMEs) have been urged to utilise Government incentives to grow their brands to global levels.
A state tourism agency has noted that many SMEs are not aware that the incentives exist.
“Some of the incentives include pictures and paintings at duty free or with exempted value-added tax (VAT),” said Tourism Finance Corporation Managing Director Jonah Orumoi.
Mr Omuroi spoke during the relaunch of Café Deli restaurant in Nairobi.
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He said the fund would work closely with local firms in line with a recent directive by President Uhuru Kenyatta to offer support to SMEs.
“It is worth to mention that the travel and hospitality industry is Kenya’s second foreign exchange earner,” said Orumoi.
However, inadequate or tough conditions laid out for SMEs to access funding has made it a challenge for the businesses to position themselves internationally.
Café Deli proprietor Obado Obadoh said the Government needed to facilitate access to funds for local brands, which would give them a chance to compete at international levels.
“Some of the international brands that have set up base in Kenya have no loans that need to be repaid (but we do). We need a way the Government can partner with us financially,” he said.
Mr Obadoh said most of the money borrowed by SMEs was from international partners, which would be cheaper to repay if the loans were accessed locally.