NAIROBI, KENYA – Kabarak University and NCBA Bank Kenya PLC on Thursday, November 6, 2025, launched a strategic partnership designed to empower Small and Medium-sized Enterprises (SMEs) by addressing the persistent challenges of inadequate skills and limited access to affordable credit. The collaboration introduces a formal Business Development Programme to equip entrepreneurs with the expertise needed to scale their operations sustainably.

The announcement, made in Nairobi, comes at a critical time for Kenya's economy. According to a 2024 report from the Kenya National Bureau of Statistics (KNBS), SMEs contribute approximately 33.8% of the nation's Gross Domestic Product (GDP) and are responsible for over 80% of employment. Despite their significance, these enterprises face formidable hurdles, including rising operational costs, high inflation, and a significant credit gap that hinders their growth potential.

A Two-Pronged Approach: Skills and Finance

The partnership's core is a four-month structured training program developed and facilitated by Kabarak University's School of Business and Economics. The curriculum, which involves 96 contact hours, will cover critical business areas such as strategic planning, financial management, risk assessment, compliance, product development, and the integration of technology. To ensure practical relevance, the program will also feature interactive case studies, peer-to-peer roundtable discussions, and field visits.

Speaking at the launch, Kabarak University Vice-Chancellor, Professor Henry Kiptiony Kiplangat, emphasized the initiative's alignment with national development goals. "This partnership directly supports Kenya’s development agenda by strengthening SMEs," Prof. Kiplangat stated. He noted that by combining academic rigor with industry expertise, the program would produce a new generation of resilient and competitive entrepreneurs. Prof. Kiplangat, a long-serving academic and university administrator, holds a PhD in Educational Administration and Planning.

On the financial front, NCBA Bank will leverage its extensive experience in SME banking to support the program. Dennis Njau, NCBA Group Director for Retail Banking, described the collaboration as a vital step towards building a more inclusive economy. “We believe that SMEs are the engine of economic growth in Kenya. This partnership with Kabarak University allows us to offer our customers strategic business skills and expert guidance to succeed in today's complex and fast-evolving marketplace,” said Mr. Njau. The program is available to NCBA's SME clients, with the bank committing to enroll at least 20 participants per cohort at a subsidized fee of KES 80,000.

Supporting the National Economic Agenda

This initiative directly supports the Kenyan government's Bottom-Up Economic Transformation Agenda (BETA), which identifies the MSME sector as a core pillar for achieving job creation and inclusive growth. The BETA framework aims to de-risk and expand financing for small businesses, a goal this partnership actively addresses. By focusing on capacity building, the program tackles one of the key constraints identified by the State Department for MSMEs Development: skills and capacity gaps among entrepreneurs.

NCBA has demonstrated a consistent strategy of supporting the SME sector. The bank has previously established dedicated funds for SME financing and entered similar successful partnerships with other institutions like Strathmore Business School. In April 2025, NCBA renewed a KES 3 billion guarantee agreement with the African Guarantee Fund (AGF) to enhance its lending capacity to SMEs, with a particular focus on women-led businesses.

Addressing a Persistent Challenge

Access to affordable credit remains a primary obstacle for Kenyan SMEs. A February 2025 survey by the Central Bank of Kenya (CBK) highlighted that businesses view limited access to credit as a significant constraint on growth. Many entrepreneurs lack the traditional collateral required by lenders, forcing them to rely on more expensive, unregulated credit sources. Furthermore, a lack of formal business management training often leads to poor financial decisions and operational inefficiencies, hampering their ability to secure and service loans.

The NCBA-Kabarak program aims to break this cycle by creating a pipeline of bankable SMEs. By upskilling entrepreneurs in financial literacy and strategic management, the initiative increases their eligibility for formal credit while simultaneously improving their long-term viability. The training sessions will primarily be held at Kabarak University and other locations in the Central and Northern Rift regions, extending the impact beyond the capital.

As Kenya navigates a challenging economic environment, public-private partnerships like this are seen as crucial drivers of resilience and recovery. By fostering a more skilled and financially inclusive SME sector, the collaboration between Kabarak University and NCBA Bank is poised to make a tangible contribution to sustainable economic development and job creation across the country.