Strathmore University and the Ministry of Agriculture Sign an MoU to Support MSMEs

The Kenya Small Business Development Centers is a USAID program being implemented by Strathmore University Business School with a mandate to champion both public and private-sector-led development to enable SMEs to participate fully in the economy and create jobs. The Program is keen to develop and nurture strategic partnerships that would help deliver its objectives in the context of public-private partnerships. A collaboration between Strathmore University through the Kenya Small Business Development Centers Program, and the Ministry of Agriculture, Livestock, Fisheries and Cooperatives (MoALF&C) through Agricultural Sector Development Support Programme (ASDSP 11) is the beginning of this important journey.

Strathmore University, through the Kenya Small Business Development Centers (Kenya SBDC), and the Ministry of Agriculture, Livestock and Fisheries through the Agricultural Sectoral Development Support Program 11 signed a memorandum of understanding to establish a framework of strengthening collaborations, shared learning, and networking between the two parties. The two organizations will jointly collaborate to support MSMEs through four intervention areas: Business Development Support; Markets Development; Access to Finance; and Research and Policy Innovations in the 47 counties. Priority areas of the six Program includes Kiambu, Nakuru, Kisumu, Makueni, Isiolo and Mombasa counties. Further, this collaboration will help to commercialize the prioritized value chains in the counties.

To memorialize the memorandum signing, the two parties held a joint meeting in February 2022 at the Fairview Hotel in Nairobi, Kenya to establish the roles and responsibilities of each partner to promote mutual benefits of each organization, with a specific interest in the provision of specific solutions.

‘’The MoU we are signing today will provide a framework for a partnership that will help enhance the benefits of the prioritized value chains for enhanced employment, improved income, food and nutrition security,’’ said Richard Ndengwa, the National Coordinator of ASDSP 11 during the MoU signing event in Nairobi.

Similarly, according to Dr. George Njenga, the Programs Manager of the Kenya SBDC Program, there is a need for the two organizations to work together by sharing information and knowledge to inform decision-making and areas of intervention for the benefit of MSMEs in Kenya.

Micro, Small and Medium Enterprises (MSMEs) are one of the strongest drivers of economic development, innovation, and employment. According to research done by the World Bank, two out of every three full-time jobs in developing economies are provided by SMEs. However, lack of access to finance, markets, and unfavourable policies are frequently identified as critical barriers to growth for MSMEs. While there has been progress on data availability and quality on formal and informal MSMEs recently, there is still a lack of consistent and high quality data in the MSME sector both locally and globally. Hence, greater efforts are needed to improve statistical capacity at the national and global level regarding data on MSMEs.

“There is a need to map out the value chains and integrate them under one platform to inform decision-making and areas of intervention,’’ said Dr.George Njenga, the Programs Manager, Kenya SBDC during the MoU signing. Strathmore University will devise a solution for the data visualization tools on MSMEs, as the first step to address the data challenges.

Through the memorandum of understanding, the two organizations will work in tandem to ensure they mitigate these challenges to enhance productivity and sustainability of MSMEs. The parties will formulate a long-term shared vision that will serve their common objectives and strengthen future activities.

One of the objectives of the Kenya Small Business Development Centers is to ensure at least 40% of the MSMES who are women, youth, or persons with disabilities benefit from the Program. Hence, the two institutions are eagerly intensifying the cooperation between them and are establishing appropriate working arrangements for the commercialization of the prioritized value chains while ensuring that women, youth, and special groups are among the beneficiaries.

The Agreement shall be carried out in line with the agreed principles of collaboration set out in a substantive memorandum of understanding. Hopefully, this is the first step in creating sustainability of MSMEs and the Kenya Small Business Development Centers Program at large.

Article par Jane Daniel Mumo

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