Small businesses form a critical part of the Kenyan economy. In addition to creation of employment, SMEs play as the feeders to larger industries with raw materials and services while generating significant amounts of taxes for the government. In the last year, SMEs have faced massive challenges that threaten their existence. The passing of the banking amendment act has for instance reduced access to credit. The long electioneering period has on the other hand slow down the productivity and output of local SMEs. Further, a harsh economic environment precipitated by increased borrowing by the national government has trickled down to SMEs affecting their operations.
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