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SMEs

State's jua kali agency seeks maximisation of working tools

In Summary

• Micro and Small Enterprises Authority want businesses countrywide to assess their requirement for common-user industrial machines in their sub-sectors including leather, metallic workings, timber and textiles among others.

CEO MSEA Mr. Henry Rithaa and Board Chairman Mr. Charles Waitaka.

Micro and Small Enterprises Authority (MSEA) wants businesses to assess their requirement for common-user industrial facilities.

The authority says sub-sectors including leather, metal works, timber and textiles among others can operate in a common area and share machinery.

Chief executive Henry Mwenda said an audit will form the basis for provision of  the value-addition machines and enhance standardisation.

 

"The common user machines will increase number of units made by an individual business ensuring same specifications," Mwenda said during a training in the celebrations of worlds MSMEs day.

So far the common user machine model has been piloted in Kamukunji Association in Nairobi to drive affordable housing agenda.

State Department of Housing awarded a Sh122 million tender to the association to make 8,000 window units, with provision of a metal-cutting machine.

The model is expected to be rolled out across the country through other associations once the audits is complete.

Single businesses will pay a fee lower than prevailing market price, to use the facilities through their registered societies, giving them a chance to earn dividends. 

Mwenda said they had received Sh352 million from the Sh450 billion budget for the financial year 2019/20 set aside for the Big Four Agenda.

The funds will be used in infrastructural development for SME worksites in counties.

 

"Out of the amount, Sh150 million will set the pace in purchase the machines but we expect an additional from the supplementary budget," he added.

In the year beginning July 1, the registration of the SMEs association currently conducted by registrar of societies at the Attorney general office will be transferred to the authority.

This is likely to increase the number of the registered businesses, and raise its revenue collection base from the sector.

A survey conducted by Viffa Consult in January, showed 88 per cent of respondent associations indicated they were duly registered with a relevant body such as registrar of societies, while 12 per cent were not registered.

56 per cent of the associations indicated membership of over 100 businesses, 25 per cent had membership of between 51-100 while 13 per cent had membership of between 1-10,

Six per cent had between 11-20 members. However, majority of the unregistered associations, 80 per cent had less than 20 members.