Businesses embracing continuous improvement strategies are reaping big, with revenues surging by 10 percent on average and declined staff turnover, a survey has revealed.
The assessment survey carried out following the conclusion a project for enhancing enterprise competitiveness by the Kenya Institute of Business Training (KIBT) and the Japan International Cooperation Agency (JICA) established a 17 percent rate of employee retention.
The project which kicked off in October 2020 at the peak of the COVID-19 pandemic sought to promote substantiable growth of Micro, Small, and Medium Enterprises (MSMEs) and entrepreneurs in Kenya.
"The outcomes are tangible--revenue has increased, unemployment has reduced by over 10 percent, and most importantly, we have trained more than 100 consultants who are now capable of guiding businesses to improve their operations and management," JICA's representative in Kenya Shinkawa Makoto said.
He made the remarks at a workshop in Nairobi where the outcomes of the outcomes of the KIBT-JICA project which concludes officially in December were disseminated.
Under the project, select enterprises in Nairobi, Eldoret, Mombasa and Nakuru benefited from on-site consultancy (OSC) aimed at improving their business process holistically in three management functions including financial, marketing & sales as well as quality and productivity improvement.
The key feature under the KIBT-JICA four-year project was hands-on systematic problem solution anchored on the on Kaizen principle of Plan, Do, Check and Analyse (PDCA) and use of quality control tools. It is what the Japanese applied to make them very productive.
Gideon Njogu, project coordinator from the KIBS divulged A total of 36 Master Trainers and 104 Trainers were trained in the project including six in Eldoret, 16 in Mombasa and 17 in Nakuru.
It is anticipated that the trained consultants will continue to support businesses, helping them grow sustainably.
Mr Njogu noted key among challenges that entrepreneurs are grappling with included inability to maintain quality work environment, lack of standard operating procedures and leadership commitment issues.
He noted that changing the mindset of entrepreneurs has been a key focus.
"Initially, many MSMEs were family-run with a mindset that saw business as a personal endeavor. Today, we have empowered entrepreneurs to view their businesses as ventures that require professional management and strategic thinking," said Mr Njogu.
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This shift has helped businesses reduce inefficiencies, improve quality, and become more competitive, not only within Kenya but in regional and global markets.
Access to finance remains a critical issue for MSMEs. Patrick Nyakundi, the Deputy Director at KIBT, discussed the ongoing efforts to ease financing challenges.
"We are working to remove stringent lending conditions that have historically made it difficult for MSMEs to secure loans. Through partnerships with financial institutions, we aim to streamline processes, making it easier for entrepreneurs to access capital," Nyakundi explained.
The government, alongside key financial bodies like the Kenya Bankers Association (KBA), is also engaging in dialogues to address the challenges around collateral requirements.
Many MSME owners lack the traditional assets, like title deeds, which are often demanded by lenders.
Kenya's MSMEs sector plays a pivotal role in the country's economy, employing an estimated 15 million people employed across these enterprises and contributing nearly 30 percent to the national value-added.
Despite their significant impact, MSMEs continue to face challenges, primarily access to finance, which remains a major barrier to growth and sustainability.
