5th International Construction Research Conference and Exhibition (ICORCE)

The PS for MSMEs Development today gave a keynote address during the 5th international construction research conference and exhibition (ICORCE) that is themed: Leveraging the potential of MSMEs and Technology for Resilient and Sustainable Construction Industry

The forum was officially graced by the by Hon. Alice Wahome, the Cabinet Secretary, Ministry of Lands, Public Works, Housing and Urban Development, and Hon. Joel the Ps State Department for Public works.

The Micro and Small Enterprises (MSEs) account for a larger share of private sector enterprises across various sectors of the economy. The sector accounts for 24% of GDP, over 90% of private sector enterprises and 93% of total Labor force in the economy.

The PS noted that the construction sector is a significant source of wage employment, generating over 235,000 wage employment in 2023, up from 222,000 in 2020. This growth in wage employment underscores the industry's role in addressing unemployment and supporting livelihoods. 

Despite the demonstrated potential and contribution of the sector to the economy, the sector continues to grapple with challenges revolving around access to credit, regulatory hurdles, infrastructure, access to markets due to market barriers, low adoption of technology and innovation among others. Mange’ni quoted.

The State Department is working closely with relevant partners to develop a framework to support linkage between MSMEs with larger enterprises through sub-contracting. Through sub-contracting, MSMEs can enhance the quality of work, develop specialized skills as well as increasing their incomes. 

For instance, through the Affordable housing project, we have seen huge contribution to MSME through subcontracting. In the Park Road project alone, 1,370 units were built, with 8,500 doors installed through MSME subcontracting, injecting Ksh 120 million into local enterprises. Scaling this nationally, 200,000 homes would require 1,240,000 doors, creating a Ksh 17.52 billion opportunity for MSMEs. 

To support start-ups in Kenya, the Government has developed a Start-Up Bill to enhance the already robust innovative environment within the MSME Sector. The Bill once enacted will create a favorable environment for innovators, attract talent and capital to Kenya by offering appropriate incentives

The Financial Inclusion Fund will continue to provide innovative financial services and products that are affordable and accessible to the unserved and underserved persons as well as MSMEs. The Fund will launch other products beyond the Personal Loan product to facilitate access to credit to both micro and small entrepreneurs. 

Over 2 million hustler fund beneficiaries have demonstrated good borrowing behaviour, and we are in the process of graduating them to mainstream financing sector through the SME loan product that we are launching in conjunction with the commercial banks.

The Ps called on the delegates and policy makers in the construction industry to confront emerging issues like smart contracting, diversity and inclusion, climate change adaptation, and the use of AI and mechanization as catalysts to succeed in building a sustainable and competitive construction industry.
“Our State Department has agencies like UWEZO FUND, KIE, MSEA And Hustler fund which have exciting programs. These programs are designed to foster growth, resilience, and inclusion. Examples of initiatives are Centre for Entrepreneurship project, KJET (Kenya Jobs Economic Transformation Project) and NYOTA (National Youth Opportunities towards Advancement) which seek to address some of the challenges.

The Ps reaffirmed the Government's commitment to creating a supportive environment for MSMEs to thrive. We recognize their vital role in our economic development and will continue to provide the resources and support they need to succeed.