On Friday, March 17, the government through the Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs), launched a massive countrywide Micro Small enterprises (MSEs) registration process.
The exercise will inform areas of intervention, partnerships and collaboration to support the growth of small enterprises in the Country.
To integrate this process, the Micro and Small Enterprises Authority (MSEA) and Kenya National Federation of Jua Kali Association (KNFJKA) signed a Memorandum of Understanding on collaboration towards promoting and developing Micro and Small Enterprises under The Kenya National Federation of Jua Kali Associations across the country.
Present at the event, held at the National Social Security Fund's (NSSF) offices, were Co-operatives CS, Simon Chelugui, and Principal Secretary State Department for Micro, Small and Medium Enterprises Development, Susan Mang’eni.
Other guests were MSEA Board Chairman, James Mureu, Kenya Federation of Jua Kali Association CEO Richard Muteti and MSEA DG/CEO Henry Rithaa.
While addressing the meeting, CS Chelugui, stated that the launch of the countrywide sensitisation registration drive of the MSME clusters preceded the launch of the Group Based Hustler Fund Product.
Despite MSMEs being a source of employment, business owners struggle to raise funds to finance their ventures. The government thus launched the Hustler Fund - a flagship programme of its manifesto geared towards realising financial inclusion for millions of Kenyans.
Through Hustler Fund, individuals can take personal loans between Ksh500 and Ksh50,000 at an interest rate of 8% per annum. Micro Loan product, launched by President William Ruto last week, further offers loans to micro businesses both at an individual level and group/collective's level, from between Ksh10,000 and Ksh200,000 at an interest rate of 7% per annum.
"The Fund was created to empower those at the bottom of the pyramid, free low-income citizens from the bondage of loan sharks and provide them with the financial security they deserve. In over 3 months since its launch, the personal finance product has provided affordable credit to over 19 million Kenyans with over Ksh22 billion disbursed. Notably, the total repayment stands at over Ksh13 billion, representing over 58%. The number of repeat customers currently stands at over 6.5 million Kenyans, which signifies the relevance of the fund to the ordinary citizen.
"This forum comes at an opportune moment when the Government is about to launch the Group Micro Loan Product. This product targets MSME collectives, so MSE Associations are a critical target of this product. Therefore, we must double our efforts regarding registering these collectives to ensure they benefit from the Hustler Fund to grow their businesses," CS Chelughui lauded the launch of the countrywide Micro Small enterprises (MSEs) registration process.
According to the CS, the MSB Act (2012) under Section 4 established the office of the registrar of MSEs with the mandate to formalise the MSME Sector. Through registration, Micro and Small Enterprises can register their businesses, register their MSE Associations, and finally register their Micro and Small Enterprise Umbrella Organizations, and be issued a certificate.
"t is only through the information that citizens are empowered to access the public resources and services designed for them. The MSMEs sector has been operating informally for the longest time. This has greatly affected the planning by the Government on mobilizing and distributing to the sector players.
"Through this initiative, the MSMEs contribute to providing a comprehensive database that will inform inter- and intra-government projects geared towards promoting and developing the sector," the CS explained.
The Registrar of MSES system is a simplified online platform designed with the interests of digitaliSing the registration process to enhance efficiency and accountability regarding the percentage of data available for the Micro Small Enterprises sector players. The government can strategically support the sector through various interventions with the database.
"It is on this matter that I hereby declare the Massive countrywide registration of MSES, officially launched and challenge all the MSES in Kenya to register through this online platform registrar.msea.go.ke, to be able to harness the various benefits and Interventions provided by the Government such as the Hustler Fund.
"In this regard, I welcome the collaboration between the Micro and Small Enterprises Authority and the Kenya National Federation of Juakali to enhance not only the formalization of the MSME sector but also leverage their strengths to promote and develop this crucial sector," he stated.
Kenya National Federation of Jua Kali Associations CEO Richard Muteti added that the MOU signed today will nature structured institutional relations and harmony between officers and members of the Kenya National Federation of Jul Kali Associations, the Jua Kall Federation and the Jua Kall sector at large.
It will also co-create joint programming and implementation of Interventions to the Jum Kali Sector in line with the government's Bottom-up Economic Transformation Agenda (BETA). BETA advocates for good governance in the management of public resources, especially the worksites and Constituency Industrial Development Centres (CIDCS) occupied and managed by members of the Federation.
"I, therefore, wish to reiterate that the Jua Kall Federation has risen to the occasion of a national call and duty in line with its cardinal mandate to protect, represent and develop the interests of the Jua Kali artisans through their registered primary associations. That is why we signed this MoU in utmost good faith," CEO Richard Muteti.
The Jua Kall Federation was registered in 1982 under the Societies Act (Cap. 108 Laws of Kenya) as the umbrella organization to represent skilled artisans in the informal economic sector through their registered primary Jua Kali associations, with over 30 years of existence and have seen at least four national administrations.