Support local SMEs to grow informal sector and economy

The 16th Public Forum of the World Trade Organisation (WTO) that ended in Geneva this week was important, particularly for developing countries which need to adapt to the changing global economy. .PHOTO: COURTESY

The 16th Public Forum of the World Trade Organisation (WTO) that ended in Geneva this week was important, particularly for developing countries which need to adapt to the changing global economy. It brought out the need to make world trade more inclusive by focusing on the Small and Medium Enterprises (SMEs) and enhancing their ability to trade across borders. In short, it was about levelling the trading field for SMEs.

We all hear about SMEs in our country but perhaps view them derisively as the ‘jua kali’ or the informal sector that perceptively do not contribute to the economy. Wrong! It is estimated that there are about eight million SMEs in Kenya that account for nearly 50 per cent of GDP, and employing over 80 per cent of the country’s labour force. There is an SMEs policy, and an act of Parliament in place to promote and regulate them, and since 2012 there is even a state corporation called Micro & Small Enterprises Authority to boot.