| Clause 2 | The Micro and Small Enterprises Act is amended in section 31 by inserting the following new paragraphs immediately after paragraph (f): | This clause expands the Micro and Small Enterprises Authority’s (“MSEA”) mandate from a general promotion role to set out a broader mandate that lays emphasis on coordination, advocacy, advisory and quality. It explicitly tasks MSEA with promoting the consumption of local produce, entailing both goods and services. |
| Amendment of section 31 of Cap 499C | f(a) Advocate, coordinate, harmonize, implement and promote national branding initiatives and policies to promote the consumption of local enterprise products in Kenyan markets. | The inclusion of technology, quality, and innovation is valuable in ensuring local products can compete with imports in terms of quality and not just price. The focus on farm enterprises is a strategic move to integrate the agricultural sector which is dominated by small scale farmers into the formal micro and small enterprises framework, potentially improving food safety and market access for farmers. |
| f(b) Advise micro and small enterprises on technology upgrading, quality and design improvement, standards and product development, and innovation, in consultation with Kenya Innovation Agency, Information and communication Authorities and other relevant authorities. | This clause is a good proposal, however, there is a high risk of overlap with existing agencies. For example, the Kenya Bureau of Standards handles standards and the quality of products, the Kenya Industrial Research and Development Institute which handles technology, and the Agriculture and Food Authority handling farm advisory. This clause correctly mandates collaboration, but without a clear framework or guide for the collaboration, this could lead to conflict, duplication of efforts, and confusion in the micro and small enterprises sector. |
| f(c) Collaborate with relevant agencies to promote the consumption of goods and services produced by local micro and small enterprises. | We propose that the implementation of this amendment should be guided by a memorandum or other guiding document that will govern the means of collaboration between the MSEA and the other key agencies to clearly define their respective roles, responsibilities, and coordination mechanisms. |
| f(d) Provide customized advisory services to local farm enterprises and consumers on quality of produce and products upon request. |
| f(e) Collaborate with other agencies to provide support and advisory services to local farm enterprises on quality produce and products. |
| Clause 3 | Section 74 of the principal Act is amended in (2) by inserting the following new paragraphs immediately after paragraph (b): | This clause is a good proposal as it provides the necessary legal and administrative framework to operationalize the new functions proposed in Clause 2. |
| Amendment of section 74 of Cap 499C | b(a) Prescribing the mechanism for the development, marketing, and branding of products by local and micro and small enterprises. | The inclusion of affirmative action is particularly useful, as it opens the door for proactive government policies to support local micro and small enterprises. This could include measures like tax incentives for businesses that source a certain percentage of their goods from local micro and small enterprises. |
| b(b) Prescribing affirmative action to promote the local consumption of goods and services produced by micro and small enterprises. | We propose that to support the implementation of the amendment of this clause, a minimum percentage of public procurement to be sourced from registered local micro and small enterprises, as provided for in the Public Procurement and Asset Disposal Act. |
| We observe that the Bill's Memorandum has clearly stated that trade development and markets are county government functions. We propose that regulations on affirmative action, branding, or market mechanisms should be developed and implemented in close consultation with county governments to ensure alignment with local trade policies and to leverage their constitutional mandate. |
