October 14, 2024

USAID’s Kisumu Kenya Small Business Development Centre (KSBDC): Turning Dreams into Realities

Jane Mumo

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What happens when you dream of transforming your community’s livelihood but lack the resources and support to make it a reality? Do you give up or seek help from others?

This is the story of Vincent Odour, a young and resilient resident from the outskirts of Kisumu. With extensive knowledge and a passion for aquaculture, Vincent yearned to start a fish farm in his community. However, he lacked the necessary funding and expertise to realise his dream. Determined to change his community and create a source of livelihood for himself and his fellow countrymen, he ventured into aquaculture farming, a primary source of livelihood in Kisumu County.

Vincent’s journey was not easy. Despite his background and education, he faced numerous obstacles like other small-scale farmers in Kisumu County. These challenges included limited access to financing, a lack of essential business skills such as marketing, bookkeeping, and financial management, and difficulties in accessing markets for their products.

Undeterred, Vincent and his peers formed the Aquaculture Barn Limited in 2019 with only one goal: transforming the sector and creating jobs for the youth. They aimed to support fish farmers by improving fishing techniques, increasing yields, and opening doors to larger markets. But, with limited financial resources and operational constraints, the group’s efforts were not yielding the anticipated results.

Still, amidst the challenges, Vincent and his peers did not give up. Their dream was clear: to create a successful fish farming enterprise that would provide sustainable income for his team and benefit the community. They continued pushing and asking for help along the way. As fate would have it, they met the Kenya Small Business Development Centers (Kenya SBDC)—Kisumu SBDC, a five-year USAID funded project that provides free business advisory services to small and medium-sized enterprises, whom they had heard were creating a paradigm shift for businesses in Kisumu County. And that was the start of a new era for Aquaculture Barn Limited.

In the first step, Kisumu SBDC conducted a detailed assessment of Aquaculture Barn Limited and identified three key areas needing support: strategic planning, financial management, and market access. This provided a baseline for delivering targeted advisory services and training to assist the company in overcoming its challenges.

One of Aquaculture Barn Limited’s most significant barriers was accessing financial resources. Traditional lending institutions required collateral like title deeds, which the young entrepreneurs did not possess. The Kenya SBDC introduced them to alternative financing options such as the Youth Enterprise Development Fund, Kenya Industrial Estate (KIE), and I&M Bank. With the team’s guidance, Vincent could open a business account and establish a formal relationship with a bank, enabling Aquaculture Barn Limited to become eligible for loans. This crucial support secured Vincent funding to expand his fish farming operations.

To ensure the effective running of the business, Kisumu SBDC trained Vincent and his team on financial management and helped them develop a five-year strategic plan. This plan laid the foundation for their long-term growth and provided a clear roadmap for the future. Additionally, the SBDC offered marketing training to help Aquaculture Barn Limited improve its sales strategy. With a new marketing plan in place, Vincent could tap into larger markets, including local hotels in Kisumu, which increased the visibility of his business.

Slowly and steadily, Aquaculture Barn Limited started to see tangible results. They were able to increase their production capacity, improve their farming techniques, and enhance their marketing efforts.

The results were transformative. After the intervention, Aquaculture Barn Limited’s first major fish harvest yielded Ksh 8.27 million in sales—a substantial increase from its previous earnings. This newfound financial success enabled the company to expand, adding three new fish cages to its existing five, which increased its production capacity and further strengthened the business.

“The program came into our lives just when we needed support. We wanted to expand our business. We had a vision for it but lacked the connection to markets and funds. Their business advisory services transformed us.” says Vincent.

Vincent’s success has had a profound impact on the local community. By partnering with four women’s groups and several young entrepreneurs, Aquaculture Barn Limited is not just a business but a community initiative. It helps others acquire fish cages and provides them with the technical support needed to thrive in the fish farming industry. This ripple effect improves small-scale fish farmers’ incomes and contributes to the region’s food security and economic resilience.

Reflecting on the journey, Vincent says, “Kenya SBDC didn’t just provide us with advice—they believed in us when we were still figuring things out. They helped us build the structure we needed to grow; today, we’re stronger than ever. We’re not just building a business; we’re building a legacy.”

Vincent Oduor’s story is just one example of how the USAID Strategic Partnership Program – Kenya SBDC, is making a tangible difference in Kisumu County. By providing one-on-one advisory services to MSMEs, the program empowers Micro, Small, and Medium Enterprises to overcome challenges, achieve sustainable growth, and improve the livelihoods of their communities. The program’s support was instrumental in helping Vincent and his team overcome their financial and operational challenges, and its impact is evident in the success of Aquaculture Barn Limited. Ultimately, through their support, Vincent’s dream is now a reality and looking at the future, he hopes to be a beacon of hope to many in his community.

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About USAID Strategic Partnership Program

USAID Strategic Partnership Program is a five-year USAID-funded program, implemented by Strathmore University Business School that executes a two-pronged approach: Transformational Resilience Programming and the Kenya SBDC projects. Kenya SBDC empowers micro, small, and medium enterprises (MSMEs) by facilitating access to markets and finance and offering business advisory support in the counties of Kiambu, Kisumu, Mombasa, Makueni, Isiolo and Nakuru. On the other hand, Transformational Resilience Programming seeks to transform the resilience programming landscape of Kenya by supporting both levels of government in developing and implementing policies and strategies towards a more competitive, inclusive, and resilient economy. It also seeks to promote transformative private sector-led investments that expand economic opportunities in vulnerable communities.

Article by Collins Owino, Business Advisor – Kisumu Small Business Development Centres

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