NAIROBI, Kenya, Nov 16- The Micro and Small Enterprises Authority (MSEA) has embarked on a registration exercise as it seeks to register at least 15 million MSMEs across the country.
According to MSEA Chief executive Officer(CEO) Henry Rithaa, only 7.1 million MSMEs are on record against the estimated 14.1 million operating in the country.
“It means they are operating under the radar of the government’s fiscal planning,” he said on Monday while receiving a cache of ICT equipment and a vehicle from United Nations Development Programme aimed to facilitate the exercise.
As part of its registration drive, MSEA has created an online platform that will allow small businesses in the informal sector to register associations, which will be overseen by the authority.
In partnership with UNDP, MSEA will also develop a comprehensive database for the SMEs and a central reference point for information dissemination.
Rithaa urged small business owners to register in a bid to enable them to access government support easily.
He further clarified that the countrywide registration of small businesses is not only meant to ensure compliance but to formalize the sector and boost its growth.
Rithaa said through registration, the government will obtain data that will aid it to identify challenges in the different sub-sectors and come up with solutions.
“Whom do we give tenders if we don’t have the statistics, whom do we give the MSEA fund to if you are not in any way recognized. whom do we take to trade fairs?” Rithaa posed.
UNDP resident representative Walid Badawi, on his part, assured that the agency will support the sector and enable it to reach the African continental market.
“Formalisation is critical not only in Kenya but the continent to help support growth of these small businesses and tap into other markets,” he said, adding MSMEs in Kenya have an opportunity to tap into the 1.2 billion people market under the African Continental Free Trade Area.
A survey by the Kenya National Bureau of Statistics (KNBS)indicated that approximately 400,000 micro small and medium enterprises were not celebrating their second birthday and very few SMEs reach their fifth birthday, leading to concerns of sustainability in this critical sector.
