MKU Charts The Road For SMEs To Use Modern Technology To Boost Growth And Sustainability
MKU Vice Chancellor, Prof Deogratious Jaganyi makes his opening remarks at the forum
By James Wakahiu
Worth Noting:
- The VC says 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.
- Prof Jaganyi spoke at a symposium hosted by MKU’s School of Business and Economics under the Theme ‘Leveraging Digital Technology for Growth and Sustainability of Small and Medium Enterprises (SMEs).
- The symposium was a culmination of two years of research that sought to investigate the challenges and opportunities that digital technology present in transforming the fortunes of SMEs especially women entrepreneurs.
Mount Kenya University (MKU) is exploring strategies on how Small and Medium Enterprises (SMEs) can ride on Information, Communications and Technology (ICT) for expansion and sustenance.
The institution’s Vice Chancellor, Prof Deogratious Jaganyi said SMEs are the backbone of Kenya’s economy, contributing over 30 per cent 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,” he said.
“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,” he says.
The VC says 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.
Prof Jaganyi spoke at a symposium hosted by MKU’s School of Business and Economics under the Theme ‘Leveraging Digital Technology for Growth and Sustainability of Small and Medium Enterprises (SMEs).
The symposium was a culmination of two years of research that sought to investigate the challenges and opportunities that digital technology present in transforming the fortunes of SMEs especially women entrepreneurs.
Making his opening remarks during the event that was held at the MKU’S Mwai Kibaki Convention Centre, the VC challenged the students to take advantage of such opportunities to build their entrepreneurial skills which will guarantee them a livelihood without depending on employment.
While disseminating the study findings, the Principal Investigator Dr Mercyline Kamande, said that while women entrepreneurs are familiar with social media platforms such as Facebook, Tik-tok and Whatsapp, few of them use the platforms for business purposes.
“The main reason is that the benefits of social media performance which is measured by likes and followings is not clear. The entrepreneurs also lack skills to optimize social media for business,” she noted.
To address this gap, a total of 41 small and medium enterprises went through a training that covered four different areas digital marketing; content marketing, email and video marketing and social media marketing after which they were supported for one month through a diary study approach.
Dr Kamande, who is also the Deputy Vice Chancellor Academics and Research Affairs, said the SMEs have financial constraints.
“A major challenge of sole proprietors is that they don’t have time to attend trainings. Women are more enthusiastic about this programme because their digital skills are lower than that of the men and they want to catch up,” she said.
Dr. Maria Mungara, the co-investigator, appreciated the cooperation the SMEs showed during the study and noted the sacrifice some of the young mothers made to complete the training. The university collaborated with industry leaders in imparting skills to the small and medium enterprises who included traders from the surrounding communities in Thika as well as MKU students keen to be job creators.
The Chief Guest, Dr Harrison Kinyua Mutegi who is the Chief Executive and Managing Director of Ellegant Credit Limited, said that for traders to benefit from social media, they must be prepared to kick-start their business ideas before seeking finances from financial institutions since banks do not fund ideas but rather businesses.
“Businesses start from idea. Many people have ideas but lack knowledge and the patience on how to launch the business, such as technology, funding and management skills. We need to convert ideas into action to implement into viable from baby steps up to maturity level. We encourage people to start from somewhere; an idea cannot be financed, but a running business can get funding. We give ICT information and funding but it’s up to you to implement your idea,” he added.
Kingdom Bank managers Keffas Mugambi and Catherine Nahashon said the forum indicated how the youth are hungry to get into business.
While admitting that the economy is down, they said some business might need restructuring of their existing loans. Kingdom Bank is a subsidiary of the Cooperative Bank of Kenya. “Loan demands rising compared to last year. We offer online banking, loans on mobile phones and we do not ask for guarantors,” Nahashon said.
MKU students Shadrack Oguta, Maureen Rotich and Faizin Albashir said student lack knowledge of use social media and the new technology.
“Such programmes expose learners to what is happening, opportunities and what is viable,” they said.
Students are wary of running businesses standing on their own called for more such programmes, they noted and asked companies to offer more student attachments and internships to gain hands-on experience.
Prof Jaganyi said the future of SMEs in Kenya is digital. By embracing digital technology, SMEs can unlock unprecedented opportunities for growth, efficiency, and sustainability. He also sked SMES to access and use ongoing business research at MKU.
“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,” he added.
Other partners that collaborated with the university to deliver this live-changing engagement included Unilever Industries which was represented by Mr Jame Okello, Vaseline Brand, and Caritas Nairobi that was represented by Fr Peter Kiarie, Director who is a Caritas Nairobi, who all took time to engage the traders and guide them on how to grow in the digital space, Deans of Schools and Heads of Department, faculty members and students.
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