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Kenya's industrialists launch strategies to revitalize growth of start-ups

Xinhua, February 3, 2017 Adjust font size:

The Kenyan Association of Manufacturers (KAM) and key partners on Friday launched a strategic plan to reactivate growth of small and medium sized enterprises (SMEs) in the country.

Phyllis Wakiaga, the CEO of KAM said that Kenya's startup sector has potential for growth subject to fair regulation, increased funding and capacity development.

"We need to empower the small and medium sized business segment of our economy that provides bulk of employment and revenue to the exchequer. A holistic action plan is crucial to guide their growth," said Wakiaga.

A recent survey by Kenya's manufacturing lobby revealed that the country has an estimated 1.6 million licensed SMEs that employ 6.3 million people.

The Kenyan Bureau of Standards (KEBS) says that SMEs contribute 33.8 percent to the country's GDP.

Wakiaga noted that majority of Kenyan SMEs are concentrated in light manufacturing, retail and transport sectors.

She added that policy and regulatory reforms were an imperative to attract investments in the start-ups that are mainly owned by the youthful population.

"It is important to have an enabling ecosystem for the SMEs to thrive. They need to implement a set of strategic action plans to enable them grow to the next level while diversifying their operations," Wakiaga said.

Kenya has an unrivalled start-up sector in the region thanks to a supportive policy framework and entrepreneurial spirit among the youthful population.

Nderitu Muriithi, a former deputy minister in the ministry of industrialization said that innovative financing coupled with elimination of red tape and skills upgrade will hasten growth of SMEs.

"Our small businesses segment has huge potential that is not yet fully exploited because of several impediments that include under-financing, red tape and managerial inefficiencies," Muriithi remarked.

He added that investments in modern transport infrastructure, vocational training, security and power supply will boost growth of SMEs. Endit