THE government plans to crack down on 'brief case' organisations purporting to represent small, micro and medium size enterprises as it implements the MSE Act 2012.
The new law was enacted in December last year and implementation was to begin early this year. It was officially launched on Thursday by Industrialisation Cabinet Secretary Adan Mohammed who called on the bodies set up under this law to speed up implementation to formalise the sector. 'There are over 200 associations each representing multiple enterprises," said Mohammed.
He urged the MSME traders to move to industry associations that are duly registered and that comply to various government regulations like paying taxes so that they can benefit from a fund that will be set up under the law to offer them loans.
The MSE Act 2012 divides the small businesses into agribusiness, services which includes rubber stamp makers and cobblers among others, manufacturing and trade.
The Act also provides for the establishment of three key institutions which are the MSE Authority, Registrar of MSE Associations and the MSE Fund that will finance promotion and development of small businesses through affordable credit.
MSE Authority chairman Paul Ngugi said these businesses have not grown "vertically" despite employing over 80 per cent of Kenya's workforce due to informality in operations and a myriad of other challenges.
Kenya Alliance of Street Vendors and Informal Traders chairman Simon Sangale said the business has not been growing because it operates in an "unpredictable environment."
"We are perpetually being evicted without notice, arrested arbitrarily and lately a shoot to kill order has been issued against the hawkers," he complained.