President Uhuru Kenyatta has directed the Ministry of Energy to reduce electricity costs for Small and Medium Enterprises (SMEs) in one month.
The president who spoke during the SMEs Roundtable Conference 2018 at the Strathmore University Business School on October 16 directed Energy Cabinet Secretary Charles Keter to come up with a sustainable plan to ensure the cost of power to small and medium-sized enterprises is brought down.
“I have directed the Cabinet Secretary for Energy Charles Keter to review electricity cost for SMEs and come up with a sustainable plan to ensure the cost of power to small and medium-sized enterprises is brought down,” President Kenyatta announced on his Twitter page.
President Kenyatta intimated that the time has come to review the country’s economic policy to accommodate SMEs which constitute 98% of all businesses in the country according to the Central Bank of Kenya (CBK).
“SMEs represent 75% of the country’s workforce and we need to sit down and know how we will respond to the industry. We owe it to them,” said President Kenyatta.
The president promised to hold another meeting with stakeholders in two months to deliberate on resolutions passed during the SMEs roundtable conference 2018.
“We must deal with issues of how to equip you so that you can have the right machinery in order for you to able to grow your businesses,” said President Kenyatta as he claimed he was ashamed over the government’s failure to fulfill its promise of renovating Gikomba Market.
This comes as a major boost for SMEs as financial institutions and policy makers continues to re-align their agenda to facilitate the growth of SMEs.
Co-operative Bank on August 23 announced that it will be dishing out unsecured loans to the enterprises which the lender described as having the potential to become a key driver for the economy.
Kiambu Town MP Jude Jomo famed for his law capping interest rates has in the past proposed that banks should be compelled to set aside at least 20% of their loans for SMEs.