State to restructure incubation agency

By WINSLEY MASESE

The Government is set restructure the Kenya Industrial Estates to help grow more businesses.

In the new plan, Cabinet Secretary, Industrialisation and Enterprise Development, Adan Mohamed, the State agency will focus on supporting and helping businesses grow and let the financing be undertaken by other partners.

“The body has to change on the way it has operated in the past and redirect its focus on providing business development and training services and let funding be done by financial institutions,” he said yesterday when he toured the parastatal’s offices in Industrial area.

Adan explained that the change of focus would see the body help upcoming entrepreneurs know how to prepare business plans besides providing the necessary incubation services. KIE was established in 1967 to incubate indigenous enterprises, provide financing, marketing and construct industrial parks.

Finance businesses

“There are over 50 financial institutions in the country that the body needs to partner with to help businesses grow,” he added.

KIE managing director, Julius Mokogi, echoed the cabinet secretary’s sentiments, arguing that they are underutilised. During the 2012/2013 fiscal year, the body received Sh200 million against the Sh1 billion they had projected to enable it finance more businesses.

 “KIE does not get enough funds to support businesses grow,” he said.

Though the original mandate of the body was for example to let new entrepreneurs be incubated at the shed for a maximum of five years, some businesses have stayed at the sheds for over 15 years. 

Some of the companies that have passed through KIE include Kevian, Haco, Spectre International, Sagana Tanneries and Maiga Engineering Ltd.