Micro, Small, and Medium Enterprises (MSMEs) in Western Kenya have called on the government to formalize all funding schemes under the Micro and Small Enterprises Authority (MSEA) as part of the ongoing review of the 2020 MSMEs policy.
Speaking at a stakeholder engagement forum hosted by the State Department for MSME Development in Kisumu on Thursday, industry players voiced concerns over the inefficiency and inconsistency in the distribution of funds since the introduction of the Hustler Fund. Entrepreneurs pointed to the challenges of limited access and unstructured funding as significant hurdles to growth and sustainability.
In response, the MSMEs are pushing for the streamlining of all funding initiatives, including the Hustler Fund, under the MSEA to ensure better management and efficiency. They also advocate for the registration of MSME associations to be done by sub-sector, rather than the current generalized system, to improve governance and clarity across the sector.
The ongoing review of the 2020 MSMEs policy aims to formalize the sector, which employs over 15 million Kenyans and contributes more than 40 percent to the national GDP. The policy revision is focused on harmonizing support from various agencies to foster sustainable growth within the MSME sector.
