MSE framework needed for Vision 2030

November 12, 2009

, NAIROBI, Kenya, Nov 12 – A legal framework that supports the growth and development of the Micro and Small Enterprises Sector (MSE) has been cited as a prerequisite for the achievement of Vision 2030.

Speaking at an inter-ministerial consensus-building workshop on the Micro and Small Enterprises Draft Bill on Thursday, Senior Deputy Secretary in the Ministry of Labour Fred Mwango said that although the sector has been identified as a key driver of Vision 2030, it faces obstacles that inhibit the realisation of its full potential.

“The unfavourable policy environment and an inhibitive regulatory framework are some of the factors that have adversely affected the sector,” said Mr Mwango. He emphasised the need for a sound instrument capable of revitalising the sector since it has the greatest potential for employment and wealth creation.

“The sector accounts for 74 percent of the total employment while contributing about 18.4 percent of the Gross Domestic Product,” he pointed out.

The Micro and Small Enterprises Bill which has been developed by the Ministry of Labour in consultation with the Attorney General’s office and key stakeholders is currently being discussed before it is presented to the Cabinet and thereafter to Parliament.

It provides for a broad-based and independent National Council for Small Enterprises (NCSE) to coordinate and advise government on appropriate policies for the MSE sector and to mobilise resources for the sector’s development and promotion.  It also proposes the establishment of a Micro and Small Enterprises Fund as well as a Tribunal to arbitrate disputes in the MSE sector.

This Inter-Ministerial workshop is part of a series of consensus-building workshops that the Ministry has held with different stakeholders.

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