Lipa Later Kenya has partnered with Mombasa County, aiming to digitize small and medium enterprises, facilitating their access to a nationwide market and providing financial services to SMEs and consumers.
Lipa Later Kenya is a prominent financial technology platform that enables small and medium-sized enterprises (SMEs) and consumers to purchase necessary products and services using the Buy Now Pay Later (BNPL) method. It also operates a digital marketplace that enables merchants and SMEs to sell their merchandise online and access credit effortlessly to foster their expansion.
In a bid to promote the digitalization of SMEs throughout Mombasa County and boost their growth, Lipa Later has signed a Memorandum of Understanding (MOU) with the County Government of Mombasa.
Lipa Later will offer a variety of tools and services to promote digitization, including user-friendly e-commerce solutions via their Sky e-commerce platform and access to the Buy Now Pay Later option, which offers simple and seamless credit access for both consumers and merchants.
By utilizing Lipa Later’s Buy Now, Pay Later platform, consumers can now apply for credit directly, making it easier to obtain credit when needed. Meanwhile, merchants will have free access to an online platform to showcase their products to millions of customers, and they can quickly apply for funding to invest in their businesses and buy inventory.
This partnership aims to create a more efficient and inclusive financial system, promote economic growth, and increase consumer purchasing power.
Lipa Later and the Mombasa County Government will provide SMEs with training and support services to assist them in growing their businesses. This includes access to financial literacy training, business management training, and mentorship programs.
The MOU also includes the formation of a task force to supervise the program’s implementation and provide feedback on its progress. The task force held its first session last month to establish the groundwork for onboarding SMEs onto Lipa Later’s digital platforms, accessing a market of hundreds of thousands of customers, and enabling SMEs to access credit with ease to support their expansion.
“We are thrilled to partner with the Mombasa County Government to support SMEs and consumers in the county. MSMEs are the backbone of African commerce, contributing 38% of Africa’s GDP and employing 70% of the region’s population. However, they encounter friction at various points in their value chain, which hampers their scalability and revenue potential.” Lipa Later Group CEO, Eric Muli stated.
Muli also stated that the collaboration between them will have a significant impact on businesses and consumers throughout the county. They are making it easier for small and medium-sized enterprises (SMEs) and consumers to participate in e-commerce and obtain credit. This is poised to revolutionize the industry.
“There are a number of challenges facing the SME sector and consumers in the county ranging from lack of inadequate market infrastructure, poor logistics infrastructure, inefficient payment systems/infrastructure, lack of trust and a varied competitive landscape. This partnership reaffirms our commitment to supporting SMEs and consumers in Mombasa and ensuring they have access to the financial resources they need to grow and succeed.” Mombasa County Governor – Hon. Nassir, Abdullswamad Sheriff stated.
Hon. Nassir, Abdullswamad Sheriff, further stated that supporting SMEs in adopting new technologies for online sales and securing funding would allow them to expand their customer base, increase sales, and position themselves for future success. This, in turn, would enhance productivity, increase consumer purchasing power, and stimulate job creation and economic prosperity throughout the region.
However, the memorandum of understanding (MOU) will remain valid for three years, with the possibility of extension, and is anticipated to have a notable influence on the progress and progress of SMEs in Mombasa, serving as a prototype for other counties in Kenya.