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Efficient Systems Key to Small Business Growth

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 7 December 2019.

Published on December 7, 2019, small scale traders in Kenya are facing numerous challenges that are hindering their business growth. Local manufacturing and system inefficiencies are among the key issues that have been cited by traders.

Kimani Gitau, the Managing Director of Diamond Lighting and Interiors, recently opened a second outlet in Nairobi and is advocating for the government to provide more incentives for local manufacturing and introducing specialization in industries. This, he believes, would significantly reduce product costs for small enterprises.

Gitau also took a swipe at the Kenya Revenue Authority (KRA) for not providing a conducive environment for small importers. He called for shorter clearance times to save importers extra costs, which are a major disincentive to small businesses.

Kenya Ports Authority gives four days for clearance of goods, after which storage charges apply. This has been a perennial complaint by traders, who believe that delays in the customs process translate into more costs for their businesses.

Gitau emphasized that the glaring gaps between policy and action exhibited by most government agencies are hindering the expansion of industry. He urged the government to implement solutions that would enable small enterprises to thrive.

For more news and updates, visit The Standard Newspaper.

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