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.......

APPRECIATION FOR THE SUPPORT TO THE 13TH EAC JUA KALI/ NGUVU KAZI EXPO, 2012.

The just concluded highly successful 13th EAC Regional Jua Kali/Nguvu Kazi Expo’2012 that was graced by His Excellency the President of the Republic of Burundi came to an end on 9th Dec. 2012. The theme was ‘’Promoting Jua Kali/Nguvu Kazi through innovation, competitiveness, investments and Private Public Partnerships’’ The event took off from 2nd to 9th December 2012 at the ‘Musee Vivant de Bujumbura’ in Bujumbura, Burundi. The success of the expo is greatly attributed to each one of the under mentioned for the unwavering and valued support that they provided in ensuring its success. we feel greatly indebted to the following entities and individuals for their direct and indirect support to the Project Management and wish to extend special thanks to:  The Republic of Burundi for hosting the 13th EAC Jua Kali Nguvu Kazi Exhibition.  The East African Community Secretariat.  The East African Community partner states through the respective Ministries responsible for the development of the Jua Kali/Nguvu Kazi sector.  The East African Confederation of Informal Sector Organization (EA-CISO) Leadership for taking lead in their tireless efforts in the mobilization of the artisans (exhibitors) across the East African region  The Founder of AHD for his logistical support and the leadership of CISO Burundi for the ground support.  The Various sponsors that supported the various CISO Country chapters.  The Excellency Ambassadors of the partner states for their constant support and wise counsel during the expo.  All the Jua Kali/ Nguvu Kazi Exhibitors from the EAC Partner States and Corporate Institutions who took their time and resources to participate thereby contributing greatly to the success of the expo.  All others who sacrificed their time and resources to make the expo a success. We look forward to your continuous support as we introduce other programs within the East African Community region aimed at empowering the Micro and Small Entrepreneurs.

KEPSA HOSTS THE PRIME MINISTER FOR LUNCH TO APPRECIATE HIS LEADERSHIP OF THE PRIME MINISTER ROUND TABLE..

NAIROBI, December 11, 2012 – Private sector business leaders in Kenya under KEPSAs umbrella met with the Prime Minister to celebrate and appreciate the success of the dialogue process that began in August 2008. This dialogue took place under the Prime Minister Round Table (PMRT) championed by KEPSA. Speaking during this luncheon, the Prime Minister appreciated that the Round Table format has become a model of stakeholder engagement between the Government and key business leaders. The Prime Minister commended the timely involvement of the private sector in influencing key policy formulation. High level advocacy is one of the key strategies for KEPSA by lobbying for policies that enable a conducive environment for businesses. Hon. Odinga stressed that Kenya’s competitiveness can only be achieved when policies that support the growth of businesses are passed. In addressing one of KEPSAs key strategy which is enhancing trade and investment, he noted that his office is open to dialogue with the private sector to identify areas which need to do better and that he is willing to put more effort into addressing the challenges. He further stated that energy is a key sector in Kenya but the current energy price is too high. This remark addresses one of the advocacy initiatives KEPSA has been involved in through its energy sector board. He assured business leaders that this situation will not go on for a long time because in future, Kenya will rely more and more on cleaner and cheaper alternative to diesel which is set to bring down the cost of doing business. He singled out geothermal, wind and nuclear energy. He also noted that the LAPPSET project will go along way in addressing transport challenges. The transport sector has also been a key focus for the private sector as businesses understand a reliable and organized transport sector is important for economic development. In other remarks, since the private sector under the umbrella of KEPSA is championing peaceful elections evident from the upcoming Speakers Round Table in Mombasa from Dec 17 – 18, the Prime Minister said “I want to assure you and your counterparts abroad watching this country that this election will be free, fair and peaceful.” This comes at a good time when KEPSA is assuring investors that their businesses are safe. For the tourism industry, this is a good indication that Kenya still remains the tourist destination. Eng. Patrick Obath, Chair KEPSA, spoke on behalf of the private sector. He appreciated the achievements that the private sector has had during the 4 years of its engagement with the Prime Minister. “The private sector has given input in policy reforms which have had a great impact in the investment environment.” He further commended the Prime Minister for his leadership in the PMRT throughout the years, listening to the needs of the private sector and ensuring these needs are reflected in policy reforms for an enabling business environment. Eng. Obath assured the Prime Minister that private sector leaders are keen on continuous engagements in future. KEPSAs CEO Ms. Carole Kariuki applauded the Prime minister for the support he has given the private sector. She noted that the Private sector is keen to have the Public Private Dialogue institutionalized. Ms. Kariuki further informed the prime Minister that KEPSA has taken the lead to inform its members, who are the majority of employers in Kenya, to give their employees time off to register as voters. This comes at a time when Kenya is experiencing a low voter turnout prior to the upcoming elections. In attendance were key business and Government leaders, the Danish Ambassador Amb. Andersen Geert and French ambassador Amb. Etienne de Poncins.