Lack of regional policies hampering SME expansion: lobby

A worker at the Kikoyi Textile Company in Tigoni prepares Kikoyi items for export made by an SME. A lobby group has said Kenya's Budget lacks sufficient policies to support small and medium enterprises despite its significant contribution to employment. FILE PHOTO | NATION MEDIA GROUP 

In Summary

• He noted that measures listed by Treasury Cabinet Secretary Henry Rotich to support the sector were not enough and could lead to unfair competition.
• Government statistics show an estimated 7.5 million SMEs in Kenya provided approximately 80 per cent of total employment and contributed over 92 per cent new jobs every year.

By LILIAN OCHIENG
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A lobby group has said Kenya's Budget lacks sufficient policies to support small and medium enterprises despite their significant contribution to employment.

The Kenya National Chamber of Commerce and Industries (KNCCI) and the accounting firm Parker Randal Chartered on Tuesday said the current budget did not fully support SME to enhance their global and regional growth.

“Besides lack of actualisation on the 40 per cent share of public projects, SMEs are also grappling with high costs of credit and access to finance, they also have limited access to the market, technology and skills sector,” said KNCCI chairman Kiprono Kittony.

Government statistics show an estimated 7.5 million SMEs in Kenya provided approximately 80 per cent of total employment and contributed over 92 per cent new jobs every year.

Parker Randall CEO Coutts Otolo urged the government to expedite plans to increase growth in the sector. He added that it is important to push for harmonisation of regional legislation to make the market vibrant for the sector.

NOT ENOUGH

He noted that measures listed by Treasury Cabinet Secretary Henry Rotich to support the sector were not enough and could lead to unfair competition.

In the 2015/2016 Budget, Mr Rotich said the government is entrenching a "buy Kenya build Kenya" policy to foster growth in the sector.

Other plans are legislation that would compel firms to acquire 40 per cent local content and increased allocation to the Uwezo Fund, the Youth Fund and the Women Enterprise Fund.

The outcry comes at a time when foreign companies are increasingly eyeing the sector with partnerships. Mauritius-based iWayAfrica and Berlin-headquartered Mambu are the latest entrants through partnerships with SMEs.