Kenya Power and Lighting Company (KPLC) Managing Director and Chief Executive Officer Dr. Joseph Siror and Principal Secretary of the State Department for Micro, Small and Medium Enterprises (MSME) Development, Susan Mang’eni, appeared before the National Assembly Committee on Trade to address concerns over the underperformance of the country’s industrial centres. The centres, part of a Sh3 billion government initiative, were intended to provide small businesses with access to shared machinery and production facilities. However, only 152 of the 235 Constituency Industrial Development Centres (CIDCs) are fully operational, while 54 are partially functional and 58 remain idle due to funding, power, land, and infrastructure challenges, as disclosed during the hearing.
The State Department for MSME Development acknowledged the struggles of the centres, which were established to bolster Kenya’s SME sector. Despite the government’s goal of creating 290 such facilities nationwide, the current operational status highlights systemic obstacles. Dr. Siror and Ms. Mang’eni attributed the setbacks to inconsistent power supply, inadequate funding, and bureaucratic hurdles, with the latter including disputes over land ownership and infrastructure gaps. The committee’s inquiry underscores the urgency of resolving these issues to fulfill the centres’ mandate of fostering economic growth through accessible industrial resources.
The underutilization of the CIDCs has raised concerns about their impact on Kenya’s SMEs, which form the backbone of the economy. The centres were envisioned as critical hubs to reduce operational costs for small enterprises by providing shared equipment and production spaces. However, the current state of the facilities—many of which are non-operational—threatens to stifle entrepreneurial activity and innovation. The National Assembly Trade Committee has called for a comprehensive review of the programme to address the identified challenges and ensure that the investment translates into tangible benefits for local businesses.
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