Remarks by the Vice Chancellor Prof. Jaganyi during SBE Symposium

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Remarks by the Vice Chancellor Prof. Jaganyi during SBE Symposium

Salutations

  • The Chief Guest – Dr. Harrison Kinyua Mutegi, Managing Director, Elegant Credit Ltd,
  • Our Guest Speakers:
  • Catherine Nahashon, Branch Manager, Kingdom Bank Thika
  • Peter Kiarie, Director, Caritas Nairobi
  • James Okello, Unilever Industries, Vaseline Brand,
  • Distinguished Guests, Our Esteemed Stakeholders, Partners and Entrepreneurs,
  • Deputy Vice-Chancellor, Academic and Research Affairs, Dr. Mercyline Kamande,
  • Deans of Schools and Heads of Department Present,
  • Faculty Members Present,
  • Students,
  • Ladies and Gentlemen.

It is an honor to address you today on a topic of immense significance—Leveraging Digital Technology for the Growth and Sustainability of SMEs in Kenya. SMEs are the backbone of Kenya’s economy, contributing over 30% of the GDP and employing millions. However, many face challenges such as limited access to finance, market constraints, and inefficiencies. Digital technology offers a transformative solution to these challenges, fostering innovation, efficiency, and competitiveness.

 

The Role of Digital Technology in SME Growth

  1. Enhancing Market Access: E-commerce platforms and digital marketplaces enable SMEs to reach a wider customer base beyond their immediate geographical locations. Platforms such as Jumia, Kilimall, and social media channels like Facebook, Instagram, and TikTok provide cost-effective marketing tools that increase visibility and customer engagement.
  2. Financial Inclusion and Digital Payments: The adoption of mobile banking and fintech solutions like M-Pesa, PesaLink, and digital lending platforms allows SMEs to access credit, manage transactions, and streamline financial operations. These tools help address traditional barriers such as lack of collateral and cumbersome loan application processes.
  3. Operational Efficiency and Productivity: Digital tools such as cloud computing, inventory management software, and automation streamline business processes, reducing operational costs and improving efficiency. SMEs leveraging enterprise resource planning (ERP) systems can manage resources effectively and make data-driven decisions.

 

Sustainability through Digital Transformation

  1. Eco-friendly Business Practices: Digitalization reduces reliance on physical infrastructure, promoting paperless transactions, e-invoicing, and cloud storage, thereby reducing the carbon footprint. SMEs can adopt green technology, such as energy-efficient digital devices, to align with sustainability goals.
  2. Resilience and Business Continuity: The COVID-19 pandemic demonstrated the importance of digital resilience. SMEs that had digital operations, online sales channels, and cloud-based systems were able to adapt quickly. Embracing digital transformation ensures businesses remain agile and adaptable to future disruptions.
  3. Capacity Building and Digital Skills: For SMEs to fully leverage digital technology, capacity building and training are crucial. Public-private partnerships should invest in digital literacy programs, mentorship, and knowledge-sharing initiatives to equip entrepreneurs with the necessary skills to navigate the digital economy.

 

Call to Action for Stakeholders

  1. Government and Policymakers: Establish policies that promote digital infrastructure, cybersecurity, and affordable internet access to enable SMEs to thrive in a digital environment.
  2. Financial Institutions and Investors: Expand digital financing options tailored to SMEs, offering low-interest digital loans and grants for technology adoption.
  3. SME Owners and Entrepreneurs: Embrace technology, invest in digital tools, and continuously upskill to remain competitive in the fast-evolving business landscape.

Conclusion

The future of SMEs in Kenya is digital. By embracing digital technology, SMEs can unlock unprecedented opportunities for growth, efficiency, and sustainability. As stakeholders, it is our collective responsibility to ensure that SMEs are equipped with the resources, skills, and infrastructure needed to thrive in the digital age.

Let us commit to leveraging technology for the prosperity of SMEs and the economic growth of Kenya.

 

Thank you.

 

Prof. Deogratius JAGANYI

VICE-CHANCELLOR

MOUNT KENYA UNIVERSITY

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