NAIROBI, Kenya, May 28 – Kenya will in the next five years receive more than Sh100 billion to support various projects under the Private Sector Development Strategy (PSDS) from development partners.
Trade Permanent Secretary (PS) Dr Cyrus Njiru on Wednesday said donors have renewed their commitment to fund the strategy which is expected to support private sector development.
“Indeed under a joint DFiD – EU implementation some 16.3 million Euros have been earmarked to support the PSDS, while a further 800million UK sterling pounds will be available over the next five years to support various PSDS activities in the area of trade expansion and diversification,” he said.
He said the government would spend more than Sh750 million for the remainder of this financial year to support on-going activities under the strategy such as business licensing and regulatory reforms. The monies will also fund the ‘doing business’ indicators which will be included in the running of local authorities to make them more friendly to investment.
At the same time, the PS hinted that the government would allocate some funds in the upcoming budget towards the PSDS.
The five-year strategy which is being implemented through five goals kicked off in 2007 and had more than two-hundred planned activities. However many stakeholders concurred that its design was ambitious and needed to be revised.
They agreed to review the aspirations of the initial PSDS strategy and prioritise activities which should be implemented using the available resources.
“The PSDS has undergone a mini-review and some important recommendations made for strengthening the implementation process while also simplifying the management and overall approach,” Dr Njiru explained.
The government, he added, wants to ensure that this mechanism is in line with the country’s development agenda Vision 2030.
Through the PSDS Management Board the team has selected strategic themes and including special attention to the Small and Medium Enterprises (SME) sector where the government hopes to enhance its growth and productivity.
He said the govt recognises that more than 90 percent of all businesses in the country belong in the SME sector but its contribution to the country’s Gross Domestic Product is a mere 20 percent.
“Our focus on improving the enabling environment is to ensure that the all important SME sector is not left behind in any way,” he pledged.
Kenya Private Sector Alliance (KEPSA) Chairman Patrick Obath disclosed that all issues that the private sector has raised in forums such as the Prime Minister’s Round Table and the National Business Agenda would be mainstreamed into the proper structures of government to ensure they are given full attention within the revised framework.
“After about two or three years, we will review our progress and that of the PSDS and then we will see what needs to be done going forward,” Mr Obath added.