SMEs have not been able to access the management and governance of the Micro Small and Medium Enterprises (MSME) fund allocated through the 2011/2012 budget due to policy implementation bottlenecks ad high interest rates.
The MSME Bill which has been pending for over a decade also seeks to sensitize the government to provide physical space to host businesses in the sector.
Kenya Private Sector Alliance (KEPSA), an influential business lobby group in the country recently backed the bill and is expemcted to put pressure which is critical in fast tracking the legislative process at a time when parliament has its hands full.
If enacted, the bill will set up the MSME Authority whose job will be to bring players in the sector. In addition it will set you an MSE tribunal with offices in the 47 counties to handle disputes in the sector.
The bill which is sponsored by Tetu Member of Parliament, Francis Nyammo, will provide much needed access to finances for supporting the SME sector as well as capacity building, research and technology development for MSMEs.
Nyammo proposes that the bill which has already passed the first reading be domiciled in the Ministry of Trade and Industry.
The Sh3.8 billion MSE fund that the government launched in March this year to provide cheaper loans to the segment will also be expanded and disbursed according to the proposed law.