MSEA Business Development Training

The Government of Kenya’s long-term development strategy dubbed the Vision 2030, aims to transform Kenya into a newly industrialized, middle-income country providing a high quality of life to all its citizens by 2030 in a clean and secure environment. Vision 2030 is implemented through Medium term Plans (MTP) which is currently in its third phase (MTP III). The current third MTP 2018-2022 aims to achieve accelerated, high, inclusive, broad based, sustainable economic growth, social economic transformation and development has mainstreamed the SDGs and Africa Union Agenda 2063.

Despite the achievements of the First and Second Medium Term Plans, unemployment and poverty remain major challenges in Kenya today. Micro, Small and Medium-Sized Enterprises (MSMEs) contribute to 85% of employment opportunities which translates to around 15 million Kenyans. The MSMEs contribute 20% of GDP in Kenya and this translates to a contribution of 3% to Kenya’s overall GDP growth which stood at 6.3% in 2019. The Micro and Small Enterprise (MSE) sector is one of the most prolific sources of employment creation, income generation and poverty alleviation.

Micro, Small and Medium Sized Enterprises in Kenya are largely informal unregistered and diverse hence non-competitive, due to limited access to finance, basic infrastructure, and lack of capacity building activities.

United Nations Development Programme (UNDP) has been enhancing national capacities for unleashing full potentials of micro-, small- and medium-enterprises (MSMEs) in achieving sustainable development goals in developing countries. UNDP has been involved in enhancing and strengthening knowledge, and national capacities of developing countries and countries with economies in transition to improve programmes supporting the growth of micro-, small-, and medium-enterprises (MSMEs) in order to promote productive activities, job creation, income generation and entrepreneurship especially among socially disadvantaged groups including women, youth, and to effectively contribute to the achievement of the sustainable development goals (SDGs).

For decades, Tana River County has suffered perennial calamities that have affected livelihoods. The county has experienced floods-driven fatalities at unprecedented rates as a result of increasing climate change. To mitigate on these challenges there have been concerted efforts to empower MSMEs and youth in general in the county. This support comes in handy to support their growth and development.

The recently passed MSE Policy aims to provide an integrated enabling business environment for the growth and development of productive MSEs in Kenya that make significant socio-economic contributions to the economy through provision of decent jobs and source of quality products more so marginalized counties. MSE Policy has Eleven (11) strategic objectives which among them includes; Building MSES skills to enhance their capacity and facilitation of access to a diversified and affordable range of financial products and services by MSEs.

The policy states that MSEs in Kenya especially start-ups which are majorly owned by youths are characterized by low managerial, financial, technical, technological and industry relevant skills. This is despite the presence of numerous learning institutions and centers of vocational training, there is a weak link between the curricula and the practical skill set required in the industry.

The Policy further states that to enhance managerial skills, financial skills, technical skills, technology and innovation, and industry relevant skills the following interventions should be employed:

• Provide holistic demand-driven and well-structured capacity building programmes in all areas of MSEs business operations.
• Promote skills and technology transfer, acquisition and adaptation for MSEs across the counties.
• Strengthen and promote the linkages between the learning and research institutions, technology developers and MSEs for technology and skills transfer.
• Create awareness on government initiatives on artisan skills certification.
• Mainstream the needs of PWDs in the capacity building programs.

The project seeks to address key challenges that have been faced by MSEs in Tana River County including skills gaps for MSEs in the country. Capacity relates to utilization of knowledge and skills that make MSEs more efficient, adaptive and responsive to changing market conditions.

The project will be implemented in Tana River counties. The project target to build capacity of 150 Micro and Small Enterprises youth. The scope of the training will include aspects on records management, financial managements, projects management, debt management, best production and marketing practices among other areas to be identified during the planned baseline survey.

UNDP will cater for all the expenses.

Micro and small enterprises have proved to be instrumental to many countries’ economic development through increased competition, employment creation, fostering innovation and as a source of various goods and services. These enterprises are crucial in complementing large firms in form of sub-contract agreements and provision of inputs.

Specifically, the project on training of youth led MSMEs on business development skills in Tana River County is envisaged to increase entrepreneurial skills contributing to increased MSEs performance, incomes levels, employment creation, and most importantly lead to resilience of the enterprises and the economy in Tana River County.