Letter from the Ministry of Labour and
Human Resource Development, Kenya, to the Head of DfID Kenya as
part of DfID Kenya's Consultation on its Country Assistance Plan
2004-07
I have studied the Draft Country Plan and have
the following observations:
1. It takes cognisance of the Government's
efforts in reviving the economy and empowering Kenyans for employment
and job creation.
2. The entire Plan is hinged on the Economic
Recovery Strategy for Wealth and Employment Creation (ERSWEC)
for 2003-07, its implementation as well as monitoring and evaluation;
and identifies some major challenges that must be managed.
3. It is pro poor objectives; and design.
4. It identifies a clear role for Development
Partners and proposes strong harmonisation of donor assistance
through the use of Sector Wide Approach to programmes (SWAPs).
5. The plan addresses the key issue of delivery
of assistance.
With regard to the development of the micro
and small enterprise sector, the Paper correctly recognises the
need for improving the business environment and competitiveness
in Kenya. The paper pledges support for the implementation of
the forthcoming Sessional Paper, on the Development of Micro and
Small Enterprises for Wealth for Poverty Reduction, as part of
the private sector development strategy.
Catalytic, MSE, development areas needing immediate
attention, as stated in Kenya's interim Investment Program for
the ERSWEC, include the following:
1. strengthening of financial institutions
providing small business credit such as Kenya Industrial Estates;
2. developing the market for training small
business entrepreneurs, preferably through demand incentive schemes;
3. strengthening vertical linkages within
the industrial sector; and subcontracting arrangements; and
4. providing support in improving legal and
regulatory investment climate.
Critical areas needing serious attention in
the implementation of the Draft Sessional paper are:
1. effective co-ordination of the sector's
development in order to minimise wastage and build synergy;
2. re-focusing the Department of Micro and
Small Enterprise Development (DMSED) to effectively co-ordinate
the various MSE policy interventions and programmes, and to provide
more facilitative and effective leadership to the sub-sector;
and
3. intensifying stakeholder participation
in building consensus on programmes and projects, and on their
implementation, funding and co-ordination mechanisms, through
the introduction of SWAP in the MSE sector development.
I take this opportunity to express our appreciation
for DIFD's intervention through funding, technical advice and
facilitation of the various activities in the process of developing
the draft MSE Sessional paper during 2003. We look forward to
working together with you as we enter the implementation phase
for the new MSE policy framework. MSE subsector needs to be assisted
to play its role in the industrialisation process.
Deborah A Ongewe,
Permanent Secretary
February 2004
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