A 2014 survey by KBA revealed that banks lending to SMEs cut across all economic sectors. In light of this, the banking Industry recognizes the important role MSMEs play in Kenya's Economic growth. To ensure that they actualize their full potential, the industry encourages MSMEs to apply and participate in the Inuka training program.
The program adopts the following approach:
There are various definitions of micro, small and medium-sized enterprises. The National Government in the Micro and Small Enterprise Act No. 55 of 2012 has defined micro and small businesses. The World Bank also has an international standard. Meanwhile, individual financial firms each have specific definitions based on their institutional requirements
For the purpose of the SME Support Facility, specific indicators have been defined by a Working Group which included the KBA Secretariat, local and regional banks, entrepreneurs, Micro and Small Enterprise Authority, Ministry of Industry, Trade and Cooperatives, Kenya Institute of Management and Kenya Association of Manufacturers.
The SME Working Group defined the MSMEs as follows.