On 24th October 2024, KEPSA participated in the MSE Policy Review Stakeholder Engagement Workshop at Radisson Blu convened by the State Department of Micro Small and Medium Enterprises. The principal secretary, State Department of MSME Development, Hon. Susan Mangeni, launched the technical working group workshop that will work to review the MSE policy 2020.

In her opening remarks, she highlighted the importance of the session, which aims to develop policies that will guide engagement with MSEs and encourage them to take advantage of available opportunities and initiatives.

Hon. Mangeni said currently the sector is benefiting from strong political goodwill, particularly through the establishment of a dedicated ministry for the MSME sector. She was keen to highlight the importance of collaboration between sector players, including the private sector, to unlock the economic potential of the informal sector and boast the formal sector that currently employs 2.5m people compared to the public sector that is doing 1M. She encouraged the audience not to focus on the complexities of the policy document but rather on simple areas that can be improved and reshaped to enhance innovative way to support MSEs, which will include strategies to de-risk and finance their ventures.

Speaking on behalf of GIZ SED Cluster Coordinator, Christoph Zipfel highlighted findings from a study by Kenya Vision 2030, which identified key challenges holding back MSEs, including limited market access, local competition, and lack of working capital financing. He also referenced a study by McKinsey & Company, which revealed a 90% productivity gap in the Kenyan market.

Mr. Zipfel emphasized that GIZ continues to collaborate with the government to support the MSME sector through capacity building, training, and other initiatives. He also noted that the German government is working closely with the Kenyan government to promote the formalization of MSMEs.

He concluded by encouraging sector players to focus on prioritizing policy areas that are practical and easy to implement, ensuring sustainable growth and impact.

MSEA CEO Mr. Henry Rithaa highlighted the government’s development of a blueprint focused on supporting MSEs. He emphasized the need for the MSE policy to align with the current agenda and evolving economic climate.

Acknowledging the challenges facing the sector, including access to financing, capacity building, and market access, Mr. Henry stressed the importance of establishing robust structures to enable organic growth, allowing MSEs to transition from micro to small, medium, and eventually large enterprises.

He also called for enhanced collaboration between the public and private sectors, urging them to move away from working in silos and instead adopt a strategic unified approach, similar to global corporations to have a greater impact in the different initiatives to supports MSEs.

In the panel discussion session that had representation from both the public and the private sector, there was a strong emphasis for a joint strategic framework to kill the silos, have collective vision that aligns to the country’s economic vision and the BETA agenda. The panel was comprised of Mr. Joram Mwinamo, the CEO SNDBX, Ms. Irene from GIZ, Ms. Mary Chege from MSEA, Mr. Levi Injendi from KEPSA, moderated by Mr. Elisha Bwatuti from Strathmore SBDC.

Photos: https://flic.kr/s/aHBqjBPq4A