The Kenya National Chamber of Commerce & Industry (KNCCI) and the Kenya Extractives Programme (K-Expro) have today launched the Working Policy Framework Towards MSME Development in Oil & Gas Counties and officially handed it over to the PS Ministry of Industry, Trade and Cooperative Betty Maina and the Council of Governors for implementation.
The framework seeks to provide a guiding framework outlining the types of targeted policy interventions that the five identified County Governments namely: Baringo, Elgeyo Marakwet, Marsabit, Turkana and West Pokot can adopt to facilitate the development of MSMEs supporting the oil & gas sector. The framework also picks lessons from across the world including academic theories, expert input and case studies from Angola and Chad that will act as practical examples for MSME development in the Oil & Gas sector into a Kenya-specific working policy framework for County Governments.
“We are excited as government that as we develop the national local content framework the private sector has also developed a working policy framework that will help us improve our document. We expect that by the time our framework is concluded by the end of the year we will guide the way to ensure local players have more capacity, have access to information on opportunities in the sector and can get finance so as to participate in sectors with huge capital needed such as oil and gas,” said PS Ministry of trade and cooperatives Betty Maina.
“This framework will equip counties with the needed guidelines towards putting in place adequate policy, regulatory and governance structures to foster county-level MSME development within the emerging economic sectors especially oil and gas. Following the launch of this framework it is my hope that the national and county governments will provide the enabling environment needed for its implementation, ” says KNCCI chairman, Kiprono Kittony.
The framework further identifies potential policy interventions needed at the county level but also highlights the opportunities and challenges policymakers may face in their execution. Among the four priority areas identified include: establishment of enterprise centers, access to electricity, access to water and access to telecommunications and computer services. Of the four the framework terms the establishment of enterprise centers as the number one priority key issue going from the experience of both Angola and Chad. To establish and operate enterprise centers a minimum consensus must be generated among stakeholders and achievement of this action directly feeds into the process of implementing the second action access to electricity.
“Counties must also create mechanisms that will allow and improve the flow of information on the various opportunities available for MSME’s as the sector has kept many willing investors away due to technical jargon and complicated business processes.” commented Kenya Chamber of Commerce & Industry CEO, Angela Ndambuki.
The development of this framework follows the signing of a memorandum of understanding between KNCCI and K-Expro earlier this year where the KNCCI project technical team would develop a framework that elaborated how the MSME sector can play a role in the oil and gas supply chain at the county level. The team was also tasked with identifying and supporting the operationalization of the needed building blocks at county level to support the development of MSMEs.
KNCCI will now host a workshop in Turkana to engage the relevant county-level stakeholders and professionals.