This archive report was first published on 26 June 2020.
As the world grapples with the COVID-19 pandemic, Kenya's economy is facing unprecedented challenges. However, one sector that has been a beacon of hope is the micro, small, and medium enterprises (MSMEs).
According to Harrison Mwirigi Ikunda, writing in a letter to the editor, MSMEs play an important role in the economy, creating employment opportunities and contributing to economic development. 'Many times it has been observed that small businesses of various sizes are key to economic development besides creating the much needed employment world over,' he notes.
However, the MSME sector has been severely impacted by the pandemic, with many businesses struggling to stay afloat. 'The situation is dire,' Ikunda says, 'it's dire not because of anything much we could have done as a country but it's a pandemic not to have been foreseen.'
Despite the challenges, Ikunda believes that MSMEs have a crucial role to play in Kenya's economic growth. 'Whatever makes it so difficult for micro enterprises to grow small to medium and eventually to large business organisations need to be addressed,' he writes.
Ikunda's sentiments are echoed by many experts who believe that MSMEs are the backbone of Kenya's economy. 'After all a lot of employment is generated by business organisations such that in any decent economy an overwhelming majority have to be working in private enterprises whether owning them, self employed or as employees and generating taxes that support government numerous services and for building the country and economy,' he notes.
As Kenya navigates the challenges posed by the pandemic, it is clear that MSMEs will play a vital role in the country's economic recovery. 'We need manufacturers and tourism industry and virtually all the sectors including the financial sector, agriculture and not forgetting the information technology and others to do their bit as they have massive impacts to the economic growth and opportunities for employment, but also not to forget there is a lot that MSMEs can do,' Ikunda writes.
