Last month’s budget was declared a win for all Kenyans. Most people looked to emphasize the gains made for the common mwananchi (I hate that term, just so you know). However, for the trained eye, high potential growth areas are easily discernible. This goes beyond the reduction of the price of unga and bread, we need to look at the things hidden in plain sight.
The budget statement, “Creating jobs, delivering a better life for all Kenyans” kind of tells you the direction the allocations would be taking. It being the last budget of the current government, ahead of the elections, a lot of punditry has emerged declaring it as a ploy to butter up voters. Say what you will, some imaginary neon lights are glowing in other areas as well. Look closely.
National Treasury Cabinet Secretary, Mr. Rotich said “Kenya’s economy is growing at twice the pace of global growth and more than twice that of Sub Saharan Africa. We are also growing faster than both Nigeria and South Africa, whose growth is projected at 0.8 percent in 2017 for each country.”
Hold up, let’s think through this. This means that Kenya is gaining much economic traction at present, right? All of these gains are being made and we haven’t yet commercialized our oil and some mineral reserves, right? How many insertions can a single entrepreneur make in such an expanding economy? The answer is numerous ones.
READ: HOW BEING AN ENTREPRENEUR WILL AFFECT YOUR FRIENDSHIPS
The mind block that comes to an entrepreneur, here, is the fact that even if they overcome the “lack of capital hurdle,” there is the “lack of financial muscle” to tender for jobs that exceed their current capacity. Talk about being caught between the proverbial rock and a hard place. Most entrepreneurs give up on undertaking seemingly large jobs because they assume that getting credit is a tedious and overdrawn process.
It is true, most banks will look at your historical record keeping in order to project your future returns. Any smart person will do their due diligence before lending to you, key word being smart. The business environment is changing, however, and the smart entrepreneur needs to also do their due diligence and realize that banks are now restructuring their approach to lending.
Enter the Trade Finance solutions. These are customized by your bank to enable you function at potential level, not just at your current capacity. Understanding what your bank can do for you makes the difference between always bidding for Sh.60,000 tenders and scaling up to Sh.600 million ones. There is, therefore, a measure of freedom in understanding your own capabilities and the partnerships you can make with your financial institution. A good banker helps you realize the potential of your business, given you adhere to good business practices.
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Baba nani said, “follow the money and you will see what you are passionate about.” Read the budget again and follow where the money is being allocated. Maybe your next big break will come from it.
Join us for the Impact Hub, April edition on 26th April at Villa Rosa Kempinski with Dr. Bitange Ndemo as we discuss the topic further, “Technology and Business Transformation.” The event will be from 6pm to 8pm.
