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MSME Project Started 17th
Jan 2005
The MSME
project started
today with an
initial meeting
of all the members of
the project team at the PMC offices at College House.
MSME Official Project
Launch 29th Apr 2005
 
Background
 
To support the development of the private sector, generate wealth and alleviate poverty in Kenya, the Government through the Ministry of Trade and Industry, with the assistance of the World Bank, is implementing the Micro, Small and Medium Enterprises1 (MSME) Competitiveness Project through public and private sector partnerships.
 
Project aim and objectives

The higher objective of the five year project is to increase growth and competitiveness of MSMEs in Kenya. This is primarily being achieved through the following three overarching components:

• Access to finance
• Strengthening enterprise skills and market linkages
• Improving the business environment


MSMEs: Micro are rated as firms employing 1 to 10 employees; Small are classified as firms employing 11 to 50 employees; while Medium firms are classified as those employing 51 to 100 employees.

The project is divided into the following
components:
  Project Component 1: Access to
Finance
This component aims at deepening and expanding the reach of financial services that are available to MSMEs. It is implemented through two sub-components, financial sector deepening and the SME risk capital fund and technical assistance to existing fund managers.
  Project Component 2: Strengthening
Enterprise Skills and Market Linkages
(SESML)
This component is addressing market failures that limit the ability of MSMEs to obtain the necessary skills and business services to exploit opportunities and overcome bottlenecks in the business environment.
 

This component is being implemented by Ernst & Young and the Kenya Institute of Policy Analysis and Research (KIPRA) and is working towards improving the business environment for MSMEs and providing an enabling environment for private investment, both local and foreign.

Broadly, it seeks to help the Government implement a simplified taxation regime and a simple registration and licensing procedure all undertaken under one roof using the “one-stop-shop” (OSS) concept in order to reduce business start-up costs.

When complete, it is expected that the component will see to adoption of a simplified and improved business registration process through the OSS, a reduced duration of business registration, and reduction of cost of compliance with business start-up procedures.

 
The Minister for Trade and
Industry,
Mukhisa Kituyi, today launched the
Micro, Small and Medium Enterprises (MSME)
Competitiveness Project housed in his Ministry.
 
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