Traders to benefit from new SME authority- in Kenya

Kenya National Federation of Jua Kali Association Chief Executive Officer Richard Muteti (second right) engages Trade Minister Moses Wetangula (second left) during the conference on Micro and Small Scale Enterprise bill. Small scale traders will benefit from a Sh3.8 billion fund after parliament passed the bill last December. NATION In Summary • The funds are supposed to be disbursed to traders at about eight per cent interest rate but many banks have kept off financing start-ups or small enterprises, terming them high risk. SHARE THIS STORY Small-scale traders will receive support directly from an authority to be established to oversee the micro and small enterprises sector. The traders are set to benefit from a Sh3.8 billion fund to advance their operations through the Micro and Small Enterprises Authority that is to be established following passage of a law for the sector in December last year. There have been challenges associated with accountability of funds channelled through commercial banks, according to Kenya National Federation of Jua Kali Association Chief Executive Officer Richard Muteti, but this could change when the authority is in place. Track usage “We don’t know the current status on usage of the funds. But, once the authority is established, we shall be able to track usage of the resources,” Mr Muteti said. Previously, the funds were channelled through commercial banks through an arrangement that allows the banks to allocate a certain proportion of what the government sets aside. The funds are supposed to be disbursed to traders at about eight per cent interest rate but many banks have kept off financing start-ups or small enterprises, terming them high risk.

Establishment of the SME Africa Trust

Brief on the SME Africa Trust; Small and Medium Enterprise Africa Trust is non- profit making Trust set up to assist in the development and promotion of Small enterprises in Africa. Its primary objectives are the following: i) Business Support services to small and medium enterprises which entails basic business information, SME sector data, appropriate inputs and reference materials. ii) Capacity Development which involve collaborating and working toward individual capacity development of SME entrepreneurs as well as institutional capacity development of SME related organisations, trade bodies and financial institutions iii) Policy advocacy, aimed at assisting SME development in Africa, major activities being working with stakeholders to facilitate the growth of an enabling environment to smoothly run SME business in Africa. iv) Making SME products and services competitive through facilitation of standardization, protection of innovation, research and development. v) Creation of linkages to facilitate growth in trade etc. BACKGROUND ON SMALL BUSINESSES IN AFRICA The micro and small enterprises (MSEs) sector is one of the most dynamic and fastest growing sectors of the African economy. The activities of the MSEs majority of which fall within the informal economic sector cut across other sectors of the economy. It’s wide geographical distribution attest to its potential for provision of goods and services offering excellent opportunities for skills entrepreneurs and management development, alleviation of unemployment and poverty, strengthening forward and backward linkages with other economic sectors and supporting industrialization policies that promote rural urban balance. It is estimated that the MSE sector especially in the East African region is growing at the rate of 10% and if supported, is expected to be the main source of employment to the African continent as a whole. Despite the critical and significant role played by the MSEs in national development, the sector has over the years experienced many binding constrains to the realization of its full potential in most African countries, there is no vertical growth in the MSE sector and therefore virtually no medium enterprises hence the question of the “missing middle”. Lack of vertical growth has inhibited the translation of the sector into a vibrant sector as an engine of growth and to provide sustainable economic development and generate significant employment and wealth. The above scenario has been attributed to a number of constrains including: low education levels, inadequate and poor penetration of export markets, inaccessible to affordable finance and credit, lack of appropriate information, poor infrastructure, inhibitive legal and regulatory environment, etc. Arising from the above, it is apparent that a concerted effort needs to be put in place for the purposes of promoting and developing the micro and small enterprises in the African continent in an effort to realize its full potential in the creation of wealth and employment to our continent. SME Africa Trust Provides the platform to address the above, and is therefore looking for partners and collaborators for the same

Malawi and Kenya to Strengthen Trade Ties

Kenya's President Kibaki accompanied by top Business Community leaders and Government Officials has concluded a three-day official visit in Malawi between 16th and 17th January 2013 where He discussed trade and bilateral ties with Malawi leader H.E. Hon. Joyce Banda. The President of Kenya was accompanied by several Ministers including the Minister of Foreign Affairs and the private sector business leaders who included Mr. Patrick Obath MBS, Chairman, KEPSA, Mr. Mbugua, Chairman, Kenya National Chamber of Commerce and Mr. Richard Muteti HSC, Director, KEPSA who is also the CEO of the MSE Federation in Kenya. During the visit, Malawi and Kenyan governments agreed to strengthen their trade ties. The agreement was made at a business forum they jointly held in Lilongwe after realizing that their trade volumes are low despite being in a relationship for about 50 years. On his part, The minister of foreign affairs in Kenya Prof. Hon Sam Ongeri urged the business people from the two countries to strike deals aimed at increasing both trade investment and trade inflows in both countries Presidents Banda and Kibaki also discussed the reopening of Malawi High Commission office in Nairobi which was closed 10 years ago. President Kibaki is a third African leader to visit Malawi after Nigeria's Goodluck Jonathan and Benin President Yayi Boni. The meeting noted that Kenya has a vibrant and fast growing private sector and therefore Kenya promised to share best practices and standards of recently implemented reforms in the East African nation.

Kenya's president H.E. Hon. Kibaki leads a high level delegation to Malawi

Kenya's President Kibaki arrived in Malawi for a three-day official visit where he discussed trade and bilateral ties with Malawi leader Joyce Banda. The President of Kenya was accompanied by several Ministers including the Minister of Foreign Affairs and the private sector business leaders who included Mr. Patrick Obath MBS, Chairman, KEPSA, Mr. Mbugua, Chairman, Kenya National Chamber of Commerce and Mr. Richard Muteti HSC, Director, KEPSA who is also the CEO of the MSE Federation in Kenya. Presidents Banda and Kibaki also discussed the reopening of Malawi High Commission office in Nairobi which was closed 10 years ago. President Kibaki is a third African leader to visit Malawi after Nigeria's Goodluck Jonathan and Benin President Yayi Boni. The last time President Kibaki was in Malawi was during the funeral of President Bingu wa Mutharika in April 2012.

MSE Bill gets the Presidents' Assent

It's a Great moment for the Micro and Small Enterprises (MSE) Sector in Kenya as the President Assents to the MSE Bill.......the Small Businesses Sector will never be the same again in Kenya.....Thanks to all the people who participated in making it a reality.......