Government Of Kenya Set To Register 15 Million SMEs

The Micro and Small Enterprises Authority (MSEA) has embarked on a nationwide registration exercise aiming to reach at least 15 million MSMEs.

MSEA Chief executive Officer (CEO) Henry Rithaa, revealed that only 7.1 million MSMEs are on record against the estimated 14.1 million operating in the country.

“It means they are operating under the radar of the government’s fiscal planning,” he said.

MSEA has now created an online platform that will allow small businesses in the informal sector to register associations, that will be overseen by the authorities to ensure compliance.

In partnership with UNDP, MSEA is also set to develop a comprehensive database for the SMEs and a central reference point for disseminating information.

According to Rithaa, the countrywide registration of small businesses is not only meant to ensure compliance but to formalize the sector and boost its growth. Business owners should therefore register for them to access government support easily.

He further added that registration of the small businesses is what enables the government to obtain data that will aid in identifying challenges in the different sub-sectors and coming up with appropriate solutions.

The government cannot give tenders if it does not have the statistics, and neither can the MSEA give funds to a business that is not recognized in any way.

UNDP resident representative Walid Badawi assured that the agency will support the SMEs sector and enable it to reach the African continental market.

He firmly stated that formalization is critical not only in Kenya but the continent to help support the growth of these small businesses and tap into other markets.

MSMEs in Kenya have an opportunity to tap into the 1.2 billion people market under the African Continental Free Trade Area according to Walid Badawi.

According to the Kenya National Bureau of Statistics (KNBS) survey in 2019, approximately 400,000 small enterprises die before their second anniversary while very few get to the fifth one.

The Covid 19 has adversely affected the global community and like most countries, Kenya has not been spared. Kenya’s international trade performance, its financial and commodity markets, and the entire macroeconomic environment have all been affected since March 2020.

The economic disruptions from COVID-19 have left MSMEs in Kenya struggling to survive with most firms now operating virtually.