The Kenya Association of Manufacturers (KAM) has launched its Business Growth Program (BGP) 2017 to help SMEs through providing them with access to markets, capacity building strategies for their growth and expansion, and support in advocacy for a more nurturing environment.
Speaking during the launch, KAM Chairperson Ms Flora Mutahi said that SMEs are a huge untapped resource for the economy, and there is need to leverage the sector by building their capacity; through creating linkages and developing a sub contracting framework.
“SMEs are the backbone of the Kenyan Economy and they are expected to play a prominent role in job creation. Yet out of 7.4 million SMEs in the country only 1.6 million are licensed. Formalization of businesses by SMEs in this country is a daunting task because the systems are not accommodating and may even seem punitive. We must correct this!
The Business Growth Program will equip these enterprises with the required management systems and processes to secure their markets and thrive. It will further allow participants to develop their concrete business growth strategies, and formulate structures for implementation. BGP consists of seven modules including financial and human resource management, market design and strategic supply chain management, among others.
Partnering in this programme, Trademark East Africa Business Director, Ms. Waturi Matu said that they will continue to support efforts by the government and business community towards developing SME friendly policies. She cited recurring challenges faced by SME’s such as power outages, access to water and high crime rates are what limit their success factor.
The value of the SME’s output is 33.8 per cent of the national output. SMEs face a relatively higher cost of capital than larger firms and more credit rationing due to the absence of collaterals.
The purpose of the Business Growth Program is to create growth oriented enterprises. Through the program, KAM will be able to facilitate and enable support to these businesses, that have specific sector issues.