Naivasha: The Council of Governors (COG) is actively promoting policies and initiatives to bolster the growth of Micro, Small, and Medium Enterprises (MSMEs) across Kenya’s 47 counties. This focus aims to accelerate economic development from the ground up.
According to Kenya News Agency, Chairperson of the CoG’s Trade, Industry, Manufacturing, and Enterprise Development Committee, COG is dedicated to creating a conducive business environment. Efforts include streamlining license acquisition, enacting business-friendly laws and regulations, and fostering a supportive culture among county staff. These initiatives are part of COG’s broader commitment to support the private sector through various business and economic development programs.
Key strategies involve offering incentives like lower taxes, rebates, and subsidies for land and factory construction costs. Additionally, facilitating access to low-cost loans is a critical element of their support for the private sector. These measures aim to attract entrepreneurs and capital to the counties, ultimately leading to job creation and economic growth.
A recent consultative meeting in Naivasha, involving the National Government, Ministry of Investment, Trade, and Industry, and the 47 County Governments, focused on fostering collaboration to promote rapid business growth. Special attention was given to supporting MSMEs through funds, tax incentives, policy reforms, automation of services, financial inclusion, and infrastructure development.
Governor Kihika emphasized the importance of promoting industry clusters to leverage marketing services, specialized finance, and access to technology and skilled labor. She urged county governments to support businesses in connecting to markets, promoting innovation, and utilizing technology for competitive advantage and job creation.
Kihika also highlighted the critical role of MSMEs in boosting income and job growth, urging county governments to implement innovative strategies for their development. Despite the sector comprising 24% of GDP, 90% of private enterprises, and 93% of the labor force, many small firms face challenges, with the smallest often collapsing within their first three years.
The Micro and Small Enterprises Act 2012 defines micro enterprises as those with annual turnovers under Sh 500,000 and less than 10 employees. These businesses are vital for industrial development, meeting local service demand, innovation, and providing services to larger firms.
The FinAccess survey and the Kenya Small Firm Diaries study shed light on the significant yet often overlooked role of small firms, employing between 1 and 20 employees, in the Kenyan economy. These firms navigate both formal and informal settings, demonstrating agility in a complex business landscape.
