MESPT: THE WHOLESALE LENDER WITH A DIFFERENCE

MESPT has offered Yehu Microfinance a loan facility of Kshs. 100,000,000 to bolster its agribusiness and green financing portfolios. MESPT has had a long-standing good partnership with Yehu Microfinance for more than 10 years offering financial resource for on-lending and capacity building of its members. Displaying a dummy cheque of the facility (L-R) are: Mr. George Ojiambo, non executive director, Yehu Board, Mr. Noah Meely, chair, MESPT caretaker committee, Mr. Adet Kachi, CEO, Yehu Microfinance, Ms. Elizabeth Matioli, member of MESPT caretaker committee, Monica Asuna, member of MESPT caretaker committee, Dr. Rita Lugogo, Chairperson, Yehu Microfinance, Charles Nyawade, Ag. CEO, MESPT and Stephen Mbugua, member, MESPT caretaker committee
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Established in the year 2002, the Micro Enterprises Support Programme Trust – MESPT – has purposefully continued to address among others, the gap in conventional lending with the objective of enhancing financial inclusion.

The Trust is one of the major reputable wholesale lenders in Kenya and offers loans to financial intermediaries such as savings and credit co-operatives (Saccos), microfinance banks as well as credit only microfinance institutions for onward lending.

Spurring economic growth

MESPT operations are geared towards poverty alleviation and job creation through private sector engagement. The Trust is predominately involved in agriculture value chains development and wholesale financing to accelerate productivity, income generation and sustainability of enterprises.

The Trust has anchored its programmes and activities on the Global Sustainable Development Goals. The key focus includes: poverty alleviation (SDG1), zero hunger (SDG2), gender equality as a cross cutting aspect (SDG5), affordable and clean energy (SDG7), decent work and economic growth (SDG8), climate action (SDG 13) and partnership for the goals (SDG17). In addition, the Trust is aligned to the Green Economy Strategy and Implementation Plan (GESIP) and the three pillars of Kenya’s Vision 2030.

Competitive advantage

a. Strong Partnerships

MESPT has over the years collaborated with strong partners such as Danida, the European Union, GIZ, SNV, USAID/Winrock among others to scale up its programmes and financial solutions.

The Trust has further created multi-sectoral partnerships with the private sector, national and county governments as well as government agencies and researchers in order to enhance capacity of enterprises and more so in the agricultural sector in Kenya. This is in line with its business model.

b. Unique business approach

MESPT business approach is based on an integrated three tier (triangular) model that focuses on producers, small and medium enterprises (SMEs) and financial intermediaries, all intertwined. The underlying objective of this model is to create linkages between different actors along the value chains through products and services. This enables beneficiaries to access capital, increase productivity and enhance access to markets.

The model is sustainable and in the event of MESPT exit in terms of support, the enterprises can continue with their operations in a profitable way.

c. Financial Solutions

MESPT provides flexible and innovative financial solutions to financial institutions for on-lending to end users. The Trust embeds technical support and capacity building interventions in financing arrangement to accelerate intended delivery and results.

The wholesale financial solutions focus on general enterprises, agri-value chain and green technologies sectors.

The result derived from interventions through debt investments has been holistic private sector support for sustainability.

Impact of MESPT work

Through its approach, MESPT has reached over seventy financial institutions and created over 77,000 jobs since 2012. In addition, it has enabled many enterprises to venture and sell their goods at the international markets; a move that has doubled their incomes. This has been possible as a result of strengthening intermediaries who provide financial or business development services thereby improving the performance of enterprises.

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