Government Launches Review of MSME Policy to Foster Sector Growth
The Principal Secretary for the State Department for Micro, Medium, and Small Enterprises Development, Susan Auma Mang’eni, officially launched the review process for the 2020 Micro, Small, and Medium Enterprises (MSME) Policy in Nairobi. This initiative aims to dismantle existing barriers that hinder the growth and development of the MSME sector.
During the launch, Mang’eni emphasized the importance of leveraging the political goodwill demonstrated by President William Ruto’s administration. The establishment of a dedicated State Department signals the government’s commitment to addressing key challenges faced by MSMEs, including access to credit, regulatory burdens, inadequate infrastructure, and limited market access.
“This review is a crucial step towards unlocking the potential of MSMEs,” Mang’eni stated. “We must work collaboratively with all stakeholders to enhance the sector’s growth strategy, focusing on a value chain approach.”
The updated policy aims to improve access to finance, reduce regulatory hurdles, enhance market access, and upgrade MSME infrastructure. Mang’eni highlighted the necessity of engaging youth and women, who represent a significant portion of MSME ownership, in tailoring interventions and financing models to meet their specific needs.
In light of the ongoing challenges posed by the COVID-19 pandemic and climate-related impacts, she stressed the importance of building resilience within the sector. “Our goal is to ensure that MSMEs are better equipped to withstand future disruptions,” she added.
Mang’eni directed the technical working group overseeing the policy review to align the new framework with current market conditions and global economic trends. She also urged the team to explore de-risking mechanisms, such as grants and guarantees, to improve access to affordable credit and establish sustainable market linkages.
This comprehensive review process marks a pivotal moment for Kenya’s MSME sector, aiming to create a supportive ecosystem that fosters growth and innovation for these vital enterprises.
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