Kenya’s Micro and Small Enterprises Authority (MSEA) has disbursed at least 2.8 billion Kenya Shillings ($23.46 million) to boost micro and small enterprises (MSEs) over the last five years, a local media report said.
The government invested more than 1.3 billion Kenyan Shillings ($10.89 million) for infrastructure development and equipment for more than 150 constituency industrial development centres in the previous three years, Kenya News Agency reported, citing MSEA Director Edward Karani.
Additionally, the authority entered into collaboration arrangements with local banks to give MSEs access to reliable loans. In order for the government to effectively address their difficulties, it also undertook the registration and enrolling procedure for MSEs.
According to a March article in The Nation newspaper, Industrialisation Chief Administrative Secretary David Osiany, the government is attempting to solve the high costs of excessive regulation, which are delaying the launch and expansion of new firms.
The main barrier preventing over 80% of SMEs in Kenya from obtaining licenses is the high cost of compliance.
“We need to address the competitiveness of SMEs. Unlicensed and unregistered businesses cannot access credit facilities, investment or service bulk orders and this cripples their business,” he added.
