Micro, Small Enterprise (MSE) 2020 Policy Review

Today, the MSME and Development PS officially launched policy review process  for the Micro, Small Enterprise (MSE) 2020 Policy in Nairobi. The MSME policy review is targeting to pull down the barriers in the MSME sector that stifle business growth and development. It is expected that the new policy will  unlock and Improve access to finance, reducing regulatory burden, enhance market access and upgrade MSME infrastructure as well as nurturing a supportive MSME ecosystems.

The PS has stressed the need of the key stakeholders to tap in the already exciting, good political goodwill demonstrated by the current administration through the leadership of H.E President William Ruto. 

By establishing and designating a State Department dedicated to the MSME sector, is a clear commitment from the government for a renewed attention and focus on the sector. 

“The establishment of the MSMEs state department implies that the current administration is keen on partnering with all the state holders in supporting the growth of this sector. You are our strategic partners and we must walk with from the very beginning of bottom up economic transformation journey”… PS  Mang’eni noted. 

In addressing challenges revolving around access to credit, regulatory hurdles, infrastructure, access to markets due to market barriers, low adoption of technology and innovation among others, the PS has called on the stakeholders to collaborate and shift their focus on the sector growth strategy which is informing our value chain approach. 

To fully realize the sector’s potential, the PS has emphasized the immense potential in tapping the youth and women who are a valuable resource in driving the economic growth.

‘Majority of MSMEs  are youth and women owned. There’s a need to contextualize our interventions and our financing models to fit their need. Looking at the Covid pandemic and other shocks like the climate related impacts, that have always crippled our sector, we must ensure our MSMEs sector becomes resilient, and cushioned against  shock” she noted

The directed  the technical working group for the MSME Policy review  to ensure that the new policy aligns  to current market conditions, technological advancements, and global economic trends.

Additionally, she has urged the review team  to identify ways of improving MSME de-risking  mechanisms structure, including grants, guarantees to increase access to affordable credit and linkages to sustainable markets to maximize the potential which MSMEs have in our economy.