NAIROBI, Kenya, Mar 22 – The Minister for Industrialisation Henry Kosgey on Monday challenged the Kenya Industrial Estates (KIE) to recommit itself to the delivery of its mandate so that Kenyans could once again begin to feel its impact.
The Minister was speaking during the official induction of the newly appointed board of directors of the institution in Nairobi. He told the board that the Ministry expects it to come up with innovative ideas and suggestions on how to move KIE forward and improve its service delivery to the Kenyan public.
The Minister pointed out that it has been the Government\’s expectation that with time, the favorable environment, enterprise and entrepreneurs supported by KIE would grow into self sustaining
businesses that would graduate into bigger industries.
This would have improved the welfare of local communities, he said, through employment creation and improved incomes and thus stimulate regional development. He acknowledged that there have been some
wonderful success stories of industries that had been incubated at KIE and which grew from micro enterprises to regional giants today but these had become fewer and far in between over the years.
The induction training is tailored to give the board members a better appreciation of the emerging discipline of good corporate governance and how it relates to their role as directors and the roles of other stakeholders.
Mr Kosgey said he was confident that from the experiences gained in KIE’s 43 years of existence, its network and asset spread in over 32 districts and despite the high cost of credit, the institution it could still make a big difference towards the process of industrializing the country. He spoke of the opportunities available
in the value addition of locally available resources and asked the institution to seek areas of collaboration.
He observed that government is still working on KIE’s balance sheet to enable it to have access to capital. He recommended that all future loans to the institution be made in local currency unlike the case in the past when KIE borrowed money in foreign currency, a situation that adversely affected repayments once the value of the Kenyan shilling dropped.
The Minister asked the board to ensure that it was involved in the Institution\’s decision making process and called on it to value and motivate members of staff so that they could achieve the desired results. He assured the board of his complete support and asked that professional conduct be upheld and also that public procurement guidelines be followed at all times.
KIE’s mandate includes the provision of finances, work space, business development services and the promotion of subcontracting linkages to Micro Small and Medium Industries in order to foster the development
of indigenous industries country wide.