This archive report was first published on 16 November 2021.
On November 16, 2021, the Kenyan government announced plans to register five million micro and small business persons under the Micro and Small Enterprises Authority (MSEA) in the next year to formalize the sector.
According to MSEA, there are currently about 15,000 individuals from 467 associations registered in the sector. MSEA CEO Henry Rithaa emphasized the importance of registration for planning and streamlining the sector.
"We cannot plan for you if we do not know what you do," Rithaa noted, highlighting the sector's key role in employing millions of Kenyans. He added that despite the Covid-19 pandemic, the largely informal sector offered employment for 14.5 million Kenyans last year, down from 15 million in the previous year.
With 7.41 million micro and small enterprises in the country, 75% are not licensed, operating under the radar of the government's fiscal planning. The registration process aims to uncover opportunities and challenges faced by these enterprises.
UNDP Representative in Kenya Walid Badawi emphasized the importance of formalizing the informal sector, allowing Kenya to take advantage of the international market, such as the Africa Continental Free Trade Area.
"Kenya is a hotbed of industries and manufacturing, and you will not survive only on the local market or if your sector is fragmented," Badawi said.
The UNDP has donated vehicles and IT equipment worth Sh27.9 million to support MSEA's registration exercise.
