MICRO AND SMALL ENTERPRISE AUTHORITY

Government introduces new policy to modify SMEs

Traders to access affordable loans at a lower tax rate to small businesses.

In Summary

• New policy and its regulation will focus on addressing challenges facing small-scale traders.

• Government focused on reducing challenges faced by the small scale traders in the Country by scaling down the taxes that a trader faces in their businesses.

Trade and industrialization cabinet secretary Peter Munya during a meeting organized by Micro and Small Enterprise (MSEA) in Machakos town.
Trade and industrialization cabinet secretary  Peter Munya during a meeting organized by  Micro and Small Enterprise (MSEA) in Machakos town.
Image: PHILOMENA KILONZO

The national government has introduced a new Small medium enterprises (SME ) policy that its geared to revolutionise the sector through creating job opportunities.

The SMEs sector which is part of President Uhuru Kenyatta’s Big Four Agenda, will offer a credit fund through the Micro and Small Enterprise Authority (MSEA) by giving traders affordable loans at a lower tax rate to small businesses.

 

Speaking in Machakos town on Friday, Trade and Industrialisation Cabinet Secretary Peter Munya said the new policy and its regulation will focus on addressing the challenges small-scale traders face on day to day basis.

 
 

Munya said that the policy public participation will kick off later this month where he urged Machakos residents to support and also issue their opinion on the matter.

The CS said that the Government is focused on reducing challenges faced by the small scale traders in the Country by scaling down the taxes that a trader faces in their businesses.

Munya was speaking during a meeting organized by Micro and Small Enterprise (MSEA) in partnership with local jua kali traders.

“We will provide access to affordable credit through the new SME loans so that traders can expand their businesses,” Munya said.

Citing that MSEA provides up to 80 per cent of Kenyan jobs, the Former Meru Governor urged traders to focus on manufacturing which is part of the Big Four.

The government offered Sh7.7 million which will be used in setting up a modern worksite and exhibition as well as jua kali machinery that will boost production and marketing for the sub-sector.

 

Touted to be one of the best worksites in the country, the Machakos jua kali centre will be a centre of excellence which will open doors for training and capacity building for upcoming traders.

 
 

Machakos being one of the rich Coffee Growing zones, Munya said that the new Kenya Planters and Cooperative Union (KPCU) will revolutionalise the ailing sector as well as provision of Cherry advance to boost productivity in the farms.

The Cherry advance, which will be 40 per cent of the farmer’s produce, will be channelled directly to the farmers as a way of scaling down existing bureaucracies and funds embezzlement in the sector.

Munya was accompanied by  MSEA chief executive officer and director general  Hery Rithaaa who said that the over 30 Constituency Industrial Development  Centres will be handed over to the traders soon to utilise and upscale their businesses.