How MSEA is transforming entrepreneurship in Kenya
Sponsored by Micro and Small Enterprises Authority
Micro and small enterprises (MSEs) showcasing their merchandise at the 21st East African Community (EAC) Micro, Small and Medium Enterprises (MSMEs) Trade Fair.
Who we are
The Micro and Small Enterprises Authority (MSEA) is a state corporation under the Ministry of Industrialisation, Trade and Enterprise Development. It is mandated to promote, develop and regulate micro and small enterprises (MSEs) in Kenya.
Presently, MSEA is implementing a number of key Government programmes aimed at mainstreaming the contribution of MSEs to the activation of Vision 2030 and the Big Four Agenda, as well as job creation. This article gives a breakdown.
MSE infrastructure development
To promote industrial activity across the constituencies, MSEA is operationalising Constituency Industrial Development Centres (CIDCs) across the country. The Authority is implementing a product development programme dubbed “One Constituency, One Product”, with the first phase of the programme targeting specific products produced within the newly refurbished CIDCs.
Borrowing from the one village, one product (OVOP) model and in collaboration with other relevant agencies such as the Kenya Bureau of Standards (KEBS) and the Kenya Industrial Property Institute (KIPI), among others, the authority is identifying locally available resources/materials in each constituency, that can be value-added for greater economic benefit. The value-added products will then be marketed locally and internationally.
At its MSE Centre of Excellence (COE) in Kariobangi, Nairobi, MSEA has a modern centre for manufacturing, technical capacity building and learning, that also hosts the Nairobi Biashara Centre. The COE projects a model manufacturing centre riding on the common user production concept. MSEA will replicate these centres in all major towns across the country.
Training of welders at the Kariobangi Centre of Excellence, Nairobi.
Cold-storage facilities
To reduce postharvest losses and enhance the value of agricultural produce, MSEA is constructing three modern cold-storage facilities for potatoes, bananas and related produce in Kisii, Nyandarua, and Meru counties. These facilities will benefit over are 10,000 farmers in these regions.
The newly-constructed Olkalou cold-storage facility, at 90 percent completion.
Capacity development and job creation: the KYEOP story
To unlock the entrepreneurial capacity among the youth, the Authority has supported 38,086 youths through the issuance of business start-up grants amounting to Ksh1.4 billion, while 49,701 youths have received business development services training through the World Bank-supported Kenya Youth Employment and Opportunities Programme (KYEOP). This is a social protection and youth empowerment project implemented over a five-year period to increase employment and earning opportunities to targeted youths aged 18-29.
MSEA is implementing the component which entails job creation through the provision of business development services, grants support and the MbelenaBiz business plan competition.
The Mbelenabiz award ceremony of February 24, 2021 saw 750 successful youths issued with funding worth Ksh1.36 billion.
Some of the Kenya Youth Employment and Opportunities Programme (KYEOP) beneficiaries.
The Authority has also entered into several partnership agreements with financial institutions and development partners to collaborate on MSEs financial empowerment, advisory services capacity building and market access opportunities. This is in line with the Authority's strategy, which is pegged on the framework of partnerships with the private sector to facilitate substantial development outcomes for MSEs.
The United Nations Department of Economic and Social Affairs has supported the development of MSEA’s Strategic Plan 2020-2025 and a survey on the impact of Covid-19 on youth and women-owned enterprises. MSEA is also in a number of partnerships with financial service providers to support MSEs seeking access to credit. The financial institutions include Stanbic Bank, Equity Bank and Family Bank.
For MSE skills development, MSEA is implementing the Digital Learning and Skills initiative launched in 2021 by the Ministry of Industrialisation, Trade and Enterprise Development (MoITED) in partnership with Stanbic Kenya Foundation, Microsoft Kenya and the African Centre for Women, Information and Communications Technology (ACWICT).
Dubbed FutureNiDigital, this initiative will offer online digital entrepreneurial skills to assist MSEs to expand and grow their businesses based on a Microsoft certification. Training is currently done at MSEA’s Kariobangi Centre of Excellence and will be rolled out in Kisumu, Meru and Murang’a for the pilot phase.
Handing over of computers for digital training, during the launch of the FutureNiDigital initiative.
MSEA has partnered with the International Labour Organisation (ILO) and its International Training Centre (ITCILO) to develop an online Business Development Services portal to train master crafts persons under the Better Utilisation of Skills for Youth (BUSY) Project.
The BUSY Project is a four-year initiative financed by the US Department of Labour (USDOL), and implemented by ILO. The strategy is expected to be a sustainable measure to scale up training of MCPs in the face of the Covid-19 pandemic and the future. The courses are available on https://bds-msea.itcilo.org/.
Formalisation of micro and small enterprises: The Office of the Registrar of MSEs
The Authority has operationalised the Office of the Registrar, whose main function is registration and maintenance of a database of registered MSEs. In partnership with UNDP,the Authority has established the infrastructure and hardware necessary to facilitate the registration of MSE associations. The initiative looks to engage local businesses in the informal sector to meaningfully participate in the economy through the regional trading blocs and other opportunities brought about by formalisation. It will also help provide targeted government interventions across the MSE sector, and guide Government policy and planning initiatives.
UNDP Kenya Country representative Walid Badawi (left), handing over ICT equipment to MSEA CEO, MR Henry Rithaa.
President Uhuru Kenyatta when he unveiled the 750 winners of the MbeleNaBiz business plan competition.
Market linkages
MSEA has been facilitating MSEs to access local, regional and international markets to expose their products. At the 21st EAC MSMEs trade fair held in Mwanza, Tanzania, MSEA supported 320 MSEs to exhibit. The next regional MSMEs trade fair will be in Uganda in December 2022.
Following the Covid-19 pandemic, there is an accelerated shift toward a more digital world. To revitalise the MSE sector, MSEA is moving with urgency to ensure micro and small enterprises seize the opportunities offered by e-commerce as the world moves from pandemic response to recovery. The Authority is seeking the support of ILO to expand the newly developed online business development services portal to include an online marketing platform.
Covid-19 recovery strategy
During this period of the Covid-19 pandemic, MSEA has been supporting enterprises in various ways. It has been feeding the Government with real-time information on the disruptions in the markets across the country, through the command centre for Covid-19 response initiative.
Further, the Authority has come up with small tenders for its members to help cushion the businesses and has bought from their goods and services. The call is for all stakeholders to prioritise procurement from the MSE sector as part of the “Buy Kenya, Build Kenya” push.
