MICROCAPITAL BRIEF: World Bank’s IDA Loans $50m to Kenya Industry and Entrepreneurship Project (KIEP) for Technical Support for Entrepreneurs; Seed Grants for SMEs

The International Development Association (IDA), a unit of the World Bank, recently issued a credit of USD 50 million to create the Kenya Industry and Entrepreneurship Project (KIEP), which is designed to strengthen the productivity and competitiveness of existing small and medium-sized enterprises (SMEs) as well as startups in Kenya. The project, which will be implemented by Kenya’s Ministry of Industry, Trade and Cooperatives, is intended to benefit 33,000 individuals and 2,400 firms across Kenya. About half of the funds are allocated to creating networking opportunities and “skills training bootcamps,” which will cover computer and soft skills. USD 21 million is budgeted for performance-based grants of up to USD 150,000 per SME. To receive the funds, each enterprise will have to meet a set of goals specific to its type of business. USD 3 million of the loan is reserved for administration, including monitoring and communication of the project’s results.

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development (IBRD) and IDA, which make up the World Bank; (2) the International Finance Corporation; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2017, the World Bank Group disbursed funds totaling USD 44 billion.

The World Bank provides grants, loans and equity investments as well as technical support to entities based in middle- and low-income countries. As of June 2017, IBRD and IDA reported total assets of USD 406 billion and USD 197 billion, respectively. As of the same month, they reported outstanding loans of USD 177 billion and USD 138 billion, respectively. During the 12 months ending June 2017, IBRD disbursed USD 18 billion in new loans to 133 projects and IDA loaned USD 13 billion via 257 projects.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

World Bank Press Release
http://www.worldbank.org/en/news/press-release/2018/06/15/kenya-world-bank-approves-50-million-to-boost-kenyas-small-and-medium-enterprises

KIEP project detail
http://documents.worldbank.org/curated/en/763241529292640506/pdf/FINAL-20180529-Project-Appraisal-Document-PAD-05292018.pdf

KIEP background
http://projects.worldbank.org/P161317/?lang=en&tab=overview

World Bank annual report
https://openknowledge.worldbank.org/handle/10986/27986

MicroCapital Brief; June 15, 2018; World Bank’s IDA Loans $15m to Women and Youth Entrepreneurship Project in Djibouti for MSME Guarantee Fund, Training, Business Plan Competitions, Online Resource Portal
https://www.microcapital.org/microcapital-brief-accion-venture-lab-yournest-invest-1-3m-for-equity-stakes-in-digital-lender-credright-of-india/

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