Umulkulthum Musa Yeya, Dr. Wahida Bana & Dr. Abdullah Ibrahim Ali

Abstract

Kenya’s coastal regions have substantial economic opportunities, especially for MSMEs involved in the maritime sector. Though this potential has been acknowledged, many MSMEs in these areas struggle with capital constraints, which makes it difficult for them to engage in blue finance efforts in a sustainable manner. In order to solve these issues and encourage sustainable blue financing for MSMEs in Kenya’s coastal region, the study aim at investigating Innovative Financial Mechanism for sustainable blue financing among maritime sector small and medium enterprises in Mombasa County, Kenya. Based on a solid body of prior research, this study explores the impact of multiple variables on sustainable blue financing. These elements include the function of blended finance, creative budget allocation techniques, the creation of technology-based financial products, and technological innovation. Furthermore, the study looks at how government financial policies and regulations moderates sustainable blue financing of the coastal SMEs.The study uses both qualitative and quantitative methodologies in a mixed-method approach, utilizing positivist research philosophy and a cross-sectional survey methodology. Participants will be chosen from the target population of Mombasa County’s medium-sized businesses under maritime sector value chain, as specified by county report, 2022, using purposeful sampling. Questionnaires will be utilized to gather primary data, and descriptive statistics will be used to analyze the answers. This will give insights into participants’ attitudes and perceptions surrounding finance for innovative projects and sustainable financing for maritime sector SMEs.

Key words: blue financing, blended finance, creative budget techniques, technology based financial products, maritime sector SMEs.