PACJA and the Kenya Industrial Estates (KIE) are at advanced stages of exploring possible areas of collaboration between KIE and PACJA aimed at supporting SMEs in Kenya to build their resilience to climate change and tap into opportunities in the evolving green economic growth. KIE is a Kenyan parastatal mandated to promote entrepreneurship by financing, incubating and facilitating the development of micro, small and medium enterprises (MSMEs).
Most SMEs in Kenya use inefficient production systems characterized by limited infrastructure, old machinery, power outages, high power tariffs and frequent water shortages, all occasioned by climate change. These impact on the SMEs’ supply chains and overall productivity.
This necessitates that SMEs be equipped with skills to assess, monitor and adapt to climate-related risks. Additionally, supporting the SMEs to access information, technology and innovation increases their ability to prepare for future adaptation response. The need for SMEs to move to low carbon pathways and embrace green economy provides them with opportunities to produce adaptation products and services.
This collaboration between KIE and PACJA offers opportunity for the two to work with SMEs in selected counties in Kenya. Establishment of innovation and incubation hubs will be fundamental for new business models that will address transition risks and challenges in accessing green finance by the SMEs. This was underscored in a meeting between PACJA’s executive director Mr. Mithika Mwenda and the Managing Director of the Kenya Industrial Estates (KIE), Dr. Parma Ole Nakirae.
As a result of this collaboration, KIE will focus on green economy by mainstreaming climate change into their activities and lining SMEs to access Global Environmental fund and Climate Change funding.