President Kenyatta 'ashamed' to read his speech

President Uhuru Kenyatta addresses delegates at an SME forum on October 16, 2018. PHOTO | MARTIN MUKANGU | NATION MEDIA GROUP

What you need to know:

  • Mr Kenyatta said most government officials tasked with ensuring better conditions for SMEs have never visited the traders in their working areas to see the difficulties they face.
  • He said both the national and county governments have failed to deliver on past pledges made to the traders, citing promises made in 2014 to build roads the populous Gikomba market but are yet to be implemented.

President Uhuru Kenyatta on Tuesday trashed his written speech, saying the government has not improved conditions for small and medium enterprises.

He said State bureaucrats make entrepreneurs understand their plight but take long to fulfil promises.

Mr Kenyatta gave the example of a 2014 pledge to build roads at Gikomba market, Nairobi.

“I will not read my speech because it is shameful. I am embarrassed to stand before you to be reminded of what we should have done many years ago,” the President said.

He criticised Governor Mike Sonko over City Hall’s failure to build a proper drainage system at the market.

More than 14,000 people ply their trade at Gikomba but the place is a mess whenever it rains. The narrow paths get muddy, making it hard for buyers to get in and out of the market.

Traders who attended the two-day conference for SMEs at Strathmore Business School complained of poor infrastructure, high power tariffs and lack of protection from international players.

Mr Kenyatta ordered a meeting to be held in a month’s time and State agencies made to say what they have done to create an enabling environment for business.

He also directed a reduction in the cost of electricity for SMEs within a month.

"I order the Energy Cabinet Secretary to review electricity tariffs and come up with a sustainable plan to ensure the cost of power to small and medium-sized enterprises goes down," President Kenyatta said during the closing of the summit.

SMEs form part of the 263,116 small commercial registered consumers under the Energy Regulatory Commission.

They are the country’s biggest employers, with the government banking on them to create jobs and reduce the unemployment among young people which stood at 22 per cent in 2017.

According to the Kenya National Bureau of Statistics, there are more than 17 million SMEs registered in Kenya, with 98 per cent of them contributing to 25 per cent of the country’s Gross Domestic Product.

Small-scale manufacturers have complained of rising power costs, which they blame for the high prices of their products.

Efforts to reach Energy Regulatory Commission director-general Pavel Omeke for details on how the President's directive will be implemented were not successful.

Three months ago, ERC announced a new payment structure to address fluctuations in power bills.

The commission capped consumption by small commercial industries at 5,000kWh per month for which they pay Sh21.95 per unit of electricity consumed.