Kenya to create one million jobs annually by 2016 - kenyadetails

Dr Songa says the jobs will be created mainly in the leather, agro-processing, furniture, metal fabrication and other trades in the informal sector adding that the Ministry is currently laying the foundation to support this, which should be achieved by the year 2016.

“We need to create an enabling environment and we are working very closely with stakeholders to ensure that this happens and we should be able to put in place concrete plans on enhanced job creation within the next one year” says Dr. Songa.

The PS encourages college leavers not to eye white-collar jobs only but also seriously consider self employment especially in the informal sector.

He says the Micro and Small Enterprise Authority (MSEA), the youngest State Corporation in the Ministry has demonstrated that great potential and talents exist particularly with our youth.

Dr. Songa says the Micro & Small Enterprise (MSE) is a key sector which provides over 80 per cent of Kenya’s labour force, employs about 9 million people and contributes 20 per cent to Kenya’s Gross Domestic Product (GDP).

The Government will fully support the sector to create more jobs by creating MSE Fund to back this crucial subsector and also encourage strong linkages with support institutions such as Kenya Industrial Research & Development Institute (KIRDI), Kenya Technical Training Institute (KITTI), Kenya Bureau of Standards (KEBS), Kenya Industrial Property Institute (KIPI) and Kenya Anti-Counterfeit Service (KENAS) to help the youth create wealth.

“Everyone cannot be absorbed in formal employment. That is why we call upon those who graduate from learning institutions to apply the entrepreneurial knowledge they have learnt for self-employment. The informal sector offers a perfect opportunity for them and I would like to tell them that they can always count on our support,” the PS says.

Dr. Songa says the new Micro and Small Enterprises Act will anchor creation of a million jobs annually in the informal sector. This he says, we be done through creation of a revolving Fund from where entrepreneurs can borrow money at low interest rates.  He notes that most small and medium sized enterprises find it hard growing because of the high cost of capital to drive them to greater heights.

He hopes the potential of job creation will continue to justify enhanced budgetary allocation in addition to financial support from development partners and the private sector to help realize the MSE Fund.

The Ministry of Industrialization & Enterprise Development will work closely with the informal sector stakeholders to help them meet the quality and standards of products that will promote locally produced goods. One potential area, Dr. Songa says is supplying furniture to Government agencies and companies operating in Kenya.

“Our people make very good furniture. We want to help them improve on a few areas such as finishing so that their products can be as good as what is imported. The Ministry will work with the industry to develop the necessary policies and legislation to encourage the “Buy Kenya, Build Kenya” initiative” Dr. Songa explains.

The PS says even though majority of Kenyans rely on agriculture, they could benefit more by embracing value addition. “We are currently enhancing the capacity of those in the agro-processing sub-sector through institutions like KIRDI, KEBS and KIPI; we will sensitize Kenyans on the need to do value addition.

We are keen to have KIRDI and the Numerical Machining Complex play a bigger role in equipping our people with small but important machines that they require to do value addition,” he explains.

This he says will not only increase income to those involved but will also create jobs. “The Agro-processing can sub-sector can create many jobs in a short time because everyone is a potential customer and consumer of its products,” says the PS.

On leather, Dr Songa says the huge demand for leather products both in Kenya and the region will help in fueling realization of the jobs. He says the Ministry is currently working with stakeholders to revive collapsed leather firms. This he says will help end export of hides and skin either in their raw or wet-blue form.

Closely related to agro-processing, is revival of the textile industry. The PS says his Ministry and that of agriculture are working closely to help revive textile facilities that collapsed. “When the textile industry was performing well in the 1970s and 1980s, Kenya had 22 ginneries.

However, most of them collapsed and currently only 10 are operational. We want to revive the other 12 and establish more because we believe textile can create very many jobs for our people,” Dr. Songa explains.

The PS says the Ministry of Industrialization and Enterprise Development is keen to have the Kenya Bureau of Standards play a key role in helping this journey of creating a million jobs annually.

“We are going to ensure that KEBS is not only well run but it is also efficient and has all the facilities necessary to back up production of good quality products,” says Dr. Songa.Â