GERMANY BILATERAL COOOPERATION WITH KENYA ON DEVELOPMENT OF MICRO, SMALL AND MEDIUM INDUSTRIES

1.0 GIZ Programmes & Projects 

Since 2018 the Government of Kenya and the Government of the Federal Republic of Germany has been having Bilateral Cooperation focusing on the development of MSMIs in Kenya through the following programmes and projects.

2.0 Employment and Skills for Development in Africa (E4D) project 

The E4D aims at improving the employment and economic situation of job seekers, employees and industries in cooperation with the public and private sector in 6 African countries Kenya included. The project focuses on entrepreneurship and industry development as well as skills development. The project has supported more than 40,000 Kenyans and close to 7000 MSMI which has contributed to the creation of new jobs.  New phase of the E4D project starts in 2023 and will focus on Promoting female employment for Africa’s green transformation and women economic empowerment. 

3.0 Promotion of Entrepreneurship and Employment programme (C4E)  

The programme has 3 objectives namely (i) Capacity building for MSMI (ii) Expand access to finance (iii) Support for entrepreneurship, especially for TVET students. The Programme is anticipated to reach over 450,000 youth and youth owned industries with services such as business development services, skills development, mentorship and common user facilities which will lead to employment and wealth creation. The Programme will also support the establishment of the “Centre for Entrepreneurship (C4E) at the Kenya Industrial Estates (KIE) serving to empower the youth & youth entrepreneurs for employment, self-employment, and promotion of youth owned Start-ups & MSMIs.

4.0 Industrial Subcontracting     

Industrial Subcontracting (IS) has become increasingly important over the past few decades. It provides an opportunity for large manufacturers to subcontract MSMIs in the production of parts/components for incorporation in their final products. IS and similar forms of linkages between Large Industries and MSMIs are important for the development of the MSMIs including promoting technology transfer and graduation of MSMIs. The Department with the support of GIZ is developing the Industrial Subcontracting Strategy that will promote industrial subcontracting in Kenya.