The Government’s Bottom-Up Economic Transformation Agenda (BETA) envisions an inclusive national economic prosperity plan that prioritises sustainable growth and development of the Micro, Small and Medium Enterprises (MSMEs), as viable catalysts for the wider economic revolution.

This agenda recognises the vital role MSMEs play in promoting innovations, creating employment, fostering inclusive growth, enhancing food sovereignty and reducing poverty.  MSMEs are the backbone of Kenya’s economy, accounting for over 80 per cent of employment opportunities; as well as contributing over 30 per cent of the country’s Gross Domestic Product.

However, most of these MSMEs are not registered due to the historical “informalisation” of this critical sector of the economy.

This has hindered the optimal actualisation of the immense potential in the sector; which can propel our country to the status of the “Asian Tigers” that revolutionised their economies through the formalisation, prioritisation and full capacitation of their MSME sector. 

In this respect, there has been a growing appeal on the need to formalise, mainstream, integrate, and capacitate MSMEs. The Government, has therefore prioritised this sector by aggressively mobilising local productivity as well as driving local and regional buyer attraction for Kenyan products; through infrastructural, financial, promotional and capacity building initiatives in the key pillars of manufacturing and value addition, agribusiness, digital superhighway and creative industry, housing, and healthcare.

To this effect, the government has embarked on a transformational journey for MSMEs by correcting the policy, market and institutional failures through schemes that will ensure incentives for and the benefits of growth are fairly distributed. In enhancement of increased accessibility to affordable credit to most Kenyans at the bottom of the economic pyramid, the two phased launch of the Hustlers Fund, for individuals and groups, was launched by the President and operationalised, with an additional Sh10.0 billion allocated for the same in the 2023/24 budget.

Furthermore, a total of Sh657.8 million has also been appropriated for the Youth Enterprise Development Fund and Women Enterprise Fund, all of which are geared towards the provision of affordable and convenient financing for MSMEs.

 By virtue of MSMEs being very critical drivers of innovation and job creation in Kenya, it’s important for the spirit of entrepreneurship and innovation to be promoted in order to help in the creation of employment and business opportunities to improve living standards, reduction of the cost of living, achievement of equity in the distribution of income, enhancement of social security, as well as expansion of the tax base for more revenue and increase in foreign exchange earnings. In order to optimally harness the potential and opportunities in the MSME sector for sustainable national development, a collective approach with collaborative interventions must be adopted between the government and its development partners, as well as other corporate entities of will, and even community based organisations, training institutions and Non-Governmental Organisations.

It is in this respect that its therefore beseeched upon the government to tap into the competencies, networks and community goodwill of its partners of visionary will in the realisation of the national BETA dream, and especially with respect to the MSMEs in its key thematic areas of agricultural transformation and inclusive growth among others.

These entities will act as convenient enablers for the government in its aspiration of ensuring affordable and convenient access to finance, technical assistance and skills, business training and other capacity building programmes. 

— The writer is an enterprise development enthusiast