This archive report was first published on 4 July 2019.
On July 4, 2019, the Kenya Association of Manufacturers (KAM) launched the Manufacturing SME Hub to support the growth of small and medium-sized enterprises (SMEs) in Kenya.
The Hub aims to address the challenges facing SMEs in the country, including unfriendly policies and regulatory regimes, lengthy quality standards and certification processes, access to markets, affordable finance, and poor governance structures.
State Department of Interior Principal Secretary Dr. Eng. Karanja Kibicho emphasized the government's commitment to addressing the challenges hindering the growth of local industries, particularly SMEs.
'The Government is keen on growing SMEs as demonstrated by the Government's directive for relevant ministries to devise SME-specific strategies to unlock the potential for small businesses in the country,' said Kibicho.
He added that the government is working to promote the competitiveness of local industries by reducing the number of agencies at the Port from 28 to 4 and establishing a one-stop-shop for manufacturers to access all licenses needed.
State Department of Industry Principal Secretary Betty Maina noted that the MSME Sector plays a crucial role in driving the growth of the economy.
'It is estimated that their production is minimal and many of them specialize in low value addition,' Maina said.
The government is keen on promoting the growth of SMEs by focusing on formalizing the informal segment of the SME Sector through the promotion and simplification of business start-up operations, promoting access to finance and markets.
Speaking during the launch, KAM Chairman Sachen Gudka emphasized the Association's commitment to supporting the development of an inclusive, innovative, sustainable, and competitive SME Sector in Kenya and the region.
'In line with the Association's core mandate, the Hub will focus on furthering fact-based advocacy to promote the global competitiveness of manufacturing SMEs,' Gudka said.
The KAM SME Hub will offer incubation services, acceleration services, and scale-up services to Micro, Small, and Medium Enterprises respectively.
It will provide start-up support, financial literacy programs, business rescue advice, SME boot camps, and mentoring services, as well as market linkages, financial linkages, study tours, and training, standards and certification support, and mentoring and coaching support.
KAM Director and SME Hub Lead Ciiru Waithaka noted that it is the right time to create a conducive space for SMEs to be productive and profitable at local and regional levels.
'It is about time that we promote the growth of MSMEs. We can achieve this by creating a more friendly business environment, lifting obstacles in the internal market, enhancing skills and uplifting standards, easing access to finances and fostering innovation,' concluded Waithaka.
