SMEs to benefit from government's Sh3bn procurement order

The government through the State Department for Housing and Urban Development is set to place a Sh3 billion procurement order with the jua kali sector.

The informal sector is set to produce 100,000 doors and 120,000 windows as local content providers for the Affordable Housing Programme.

A Multi-Agency Committee on Integration of MSMEs in the Affordable Housing Programme led by NCA will provide 30 per cent advancement payment to successful bidders.

State Department of Housing PS Charles Hinga on Thursday said the ministry has ring-fenced some components used in the construction of homes to ensure that the jua kali sector can supply inputs to the programme.

“We are giving the Jua Kali sector an opportunity to participate in the construction of houses for the Affordable Housing Programme,” Hinga said.

Hinga spoke on Thursday as he launched the Micro, Small and Medium Enterprises (MSMEs) Production Manual.

He added that the sector is a big contributor to employment in the country and a key enabler of the manufacturing sector.

"We are keen to upskill them to enable them to contribute to this national development project while supporting their growth".

The members in the Jua Kali sector have been asked to form associations and register to provide construction components and materials for the project.

Principal Secretary in the Department for Industrialisation Francis Owino said that the informal sector is critical to achieving the Big 4 Agenda.

“The informal sector has the greatest potential to enable the realisation of the Big 4 Agenda and economic growth as they are critical players in the production of construction sector materials and components, and are a key contributor in employment creation,” Owino said.

Jua Kali Association chairman Richard Muteti said the sector must organise itself in order to deal with the government – one of the largest markets they could serve.

He also called upon Jua Kali Association members across the country to form groups as it is easier for the government to transact with Associations rather than a multitude of individual Jua Kali entrepreneurs.

Earlier in the year, the State Department for Housing and Urban Development contracted three Nairobi based Jua Kali associations (Ngokamka Juakali Group) in the pilot phase of developing an integration model for MSMEs.

President Uhuru Kenyatta had earlier urged banking institutions to extend cheap loans to Micro, Small and Medium Enterprises.

Uhuru said SME's have been locked out of the formal credit market for long, which has hampered their businesses.