The Kenya National Federation of Jua Kali Associations (KNFJKA) has projected robust sector growth with a significant contribution to the country’s gross domestic product (GDP) amid the unveiling of the Kes 800 million plan in June 2023. The Juakali sector plan is expected to run up to 2027, and the launch was overseen by Micro, Small, and Medium Enterprise Development Principal Secretary Susan Mangeni, who identified Kenya’s entrepreneurial sector and the national government as some of the key drivers in the sector.
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The Jua Kali Federation aims to fully utilize the Africa Continental Free Trade Area (AfCFTA) in boosting the capacity for Kenyan exports in its endeavour to increase the market for locally produced products by penetrating the regional markets. In addition, the federation has aligned strategic solutions to both challenges and opportunities in the sector, which, if well implemented, should see growth in the sector. Part of these strategic solutions is to change the federation’s structure in terms of management and secretariat, including various organizational reforms to enhance the success of implementing the plan.
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The plan noted that the use of outdated production techniques has caused the sector to be unable to set and maintain quality standards, resulting in low production capacity to enhance exports. In this regard, it seeks to launch a standard improvements program that will see the introduction of more modern production means as well as collaborative agreements with intellectual property institutions to enhance intellectual property protection as an incentive to foster innovation in the sector.
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The sector also identified that low and unstructured access to information technology caused low productivity through the use of e-commerce in the sector. Furthermore, MSMEs have limited access to information, credit, and business support services to scale up or sustain their businesses. Therefore, the plan will focus on digitalization in the sector as it aims to incorporate the use of digital technologies and data in order to create revenue, improve business, replace or transform business processes, and create a competitive environment for these businesses to thrive.
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