1 Support Program for Jua Kali and Cottage Industries in Bomet County

8/11/2019 1 Support Program for Jua Kali and Cottage Industries in Bomet County

1/43

Support Program for Jua Kali and

Cottage Industries in Bomet County

Presentedby

Dr. Kipkirui Langat

andDr. Charles M.M. Ondieki


2/43

Introduction Bomet County borders with Kericho County to the North and

North East, Narok County to the South East, South, and SouthWest, and Nyamira County to the North West, and covers atotal area of 1,997.90 Sq Km.

The county has a total population of about 770,000 peoplewith five electoral constituencies: Sotik, Chepalungu, BometEast, Bomet Central and Konoin.

Bomet County Government has the major towns namely:Bomet Town (which is the administrative centre), Sotik Town,Longisa and Mulot.


3/43

Agriculture in Bomet County Agriculture is the mainstay of Bomet County with tea farming

and dairy production leading in the sector with maize as theareas staple food; other foods crops are beans, Irish potatoes,millet, cabbages, onions, bananas and pineapples, and avocadoand passion fruits which are grown both as subsistence andcommercial crops.

Tea earns the county most of the revenue followed by dairyindustry; there is a milk factory in Sotik town and several milkcooling plants spread across the county.

Coffee farming is also established in areas around Bomet,Tarakwa and Ndanai.

Fish and poultry rearing are also receiving attention in thecounty of late. The County has favourable climatic conditions that have

allowed the area to remain green for most parts of the year.The area also receives rainfall for a good part of the year which

allows agriculture to flourish.


4/43

Vision 2030 Vision 2030 is a national long-term development

blue-print aimed at creating a globally competitiveand prosperous nation with a high quality of life by2030; the vision is anchored on three key pillars;economic, social and political governance.

The objective of the economic pillar is To maintain asustained economic growth of 10 percent per annumfor 25 years .

The social pillar of Vision 2030 seeks to create a just,cohesive and equitable social development in a cleanand secure environment.

The political pillar vision is to have A democraticpolitical system that is issue-based, people-centred,result-oriented and accountable to the public .


5/43

National Industrial Development Policy This policy was developed so as to spur economic

growth in Kenya through industrialization in orderto create employment and lead in contribution toGDP so as to offer sustainable better lives for

Kenyans. The policy is expected to enhance a sustained

growth of the industrial sector, by at least 15 per

cent per annum by 2017, by creating an enablingenvironment for a robust, diversified, faircompetition field, cost and time conscious, andinnovative industrial sector


6/43

Objectives of Kenya National Industrialization Policy -The overall objective of this policy is to sustain thegrowth of the industrial sector and make it the mostpreferred location for industrial investment by:

creating an enabling environment through improved infrastructure forindustrial development;

attracting local and foreign industrial investment, mining and quarrying; promoting the development of SMEs; enhancing value addition to Kenyas natural and agricultural resources; intensifying research and development, innovation and technology

adoption for industrial growth and sustainability; facilitating the provision of internationally recognized standards,

measurement and conformity assessment solutions; ensuring protection of Intellectual Property Rights;

ensuring sound policy on counterfeit products and damping is in place; enhancing access to financial services and markets; upgrading technical, production and managerial skills; Protection of the environment.


7/43

SME growth and graduation The SME sector is the foundation of industrial

development in most developing and developedcountries.

The sector is suffering from many challenges includinglack of access to affordable finance, limited access tomarkets, and lack of infrastructure, hostile businessenvironment, weak management structures, and lack ofaccess to skilled labour.

Many of the past policies were devised from theperspective of large firms and those targeting the sectorwere fragmented and not effective to the development of

the SMEs. This study is expected to come up with recommendations

that will mitigate these challenges, and therefore unlockthe SMEs full potential in economic development ofBomet County.


8/43

Policy Statements on SME growth andgraduation for industrialization:

Fast track the enactment of the Micro, Small andEnterprise Bill which has already been done. Establish an Industrial Development Fund (IDF); the

County should also establish a Fund for the sector. Develop a National Industrial Incubation Policy; the

County should also develop a County IndustrialIncubation Policy.

Develop a One-Stop- Shop for business registration,licensing and taxation for SMEs.

Develop a National Industrial Subcontracting Policy. All the above were contained in the Sessional Paper

No. 2 of 2005 on the Development of MSEs.


9/43

Micro and Small Enterprise Act of 2012 The Micro and Small Enterprise Act (2012) is a law

that was passed by Parliament in 2012; it set up newrules and institutions to support micro and smallbusinesses in Kenya to support them to succeed.

The MSE Act is aimed at improving the MSE industry;in an attempt to bring order to this sector and ensureits growth, the MSE Act first divides the MSE sectorinto seven main parts:

The micro and small enterprises The MSE Associations and Umbrella organizations The Registrar of SMEs The MSE Authority The MSE Fund, and The MSE TRIBUNAL


10/43

The micro and small enterprises have been divided into four categories:Trade, Farming, Manufacture and Service Providers.

The Umbrella organizations and Associations will keep a record of theirmembers and have proper book of accounts; they will also have the

responsibility of raising resources for development of their membersenterprises. The registrar of SMEs is responsible for registering the MSEs Associations

and Umbrella Organizations, The MSE Authority will formulate and review policy programs for MSEs,

while also raising resources for the development of MSE activities. The enterprises will use the MSE Fund to access affordable credit for

promotions and development. The fund can be accessed by: Associations and Umbrella organizations through loan applications,

factoring, guarantee and micro-insurance for the members benefits. Community based organizations, non-governmental organizations or any

institution involved in the promotion and development of the MSE sectoractivities, and for use in relevant MSE programs. With this Fund, MSEs can expand their businesses as well as insure

against loss as witnessed before. The application of the MSE Act will see the MSEs advance to SMEs, raise

employment levels in the country and create sustainable growth.


11/43

Micro and Small Enterprise Authority (MSEA) To formulate and review policies and programs for MSEs.

To monitor and evaluate the implementation of existingpolicies and programs related to or affecting micro and smallenterprises, and advise the government on what policies andactions to take.

To raise resources for the development of MSE activities. To promote innovation and development of products by

MSEs. To develop mechanisms, tools and programs for collection of

comprehensive data disaggregate by sex, region and ageamong others to enable proper planning for the micro andsmall enterprises sector.

To connect with relevant authorities to zone out and manageland for MSEs.

To develop and guide certified demand-driven capacity-

building prorgams.


12/43

To promote and provide business development services forMSEs.

To identify markets for products generated by micro and smallenterprises and provide linkages between micro and smallenterprises and potential markets.

To source for funds and resources for development ofappropriate technology in relevant researchinstitutions/enterprises that develop technology for MSEs.

To encourage innovation and transfer of technology so as toincrease competitiveness of micro and small enterprisesproducts and services.

To encourage invention and innovation by micro and smallenterprises.

To identify, collect, develop and spread technology andproducts to MSEs.

To administer the MSE Fund. To collaborate with relevant institutions to develop programs

for improving credit access and other financial services by

micro and small enterprises.


13/43

The MSE Fund

The MSE Act has set up a Micro and SmallEnterprises Fund to do the following:

Finance the promotion and development ofmicro and small enterprises.

Provide affordable and accessible credit tomicro and small enterprises.

Finance research, development, innovationand transfer of technology.


14/43

The Objectives of the Project The overall objective of the project is to undertake a

technical study to develop a strategy for the support of theJua Kali and cottage industries support program in BometCounty and finally monitor its implementation.

The Projects Specific Objectives are: To promote the sector participation by having conversation

around the devolved functions; and the role of the countygovernment vis--vis the industrial sector in the countyeconomic development.

To conduct a baseline survey to establish the number of JuaKali players in each sub-county, respective sub-sectors,challenges of the sector, enlist required appropriatetechnologies, existing industrial skills, gaps to be filledtaking cognizance of the need for jobs for women and theyouth.


15/43

Carry out an assessment of all existing programs and projects(completed/stalled) relating to the Micro and small Enterprise(industrial sector/cottage) at the county.

Identify stakeholders both at the county and at the nationallevels, their functions/mandates with a view to establishcollaborative synergies for effective design and implementationof support programs for the sector to climbing ladder frommicro onwards in line with the first Bomet Strategic Plan 2014 2017 and vision 2030.

To facilitate borrowing of the best practices and sharingexperience from other counties and/or countries. To review and customize existing national policies relating to

industrial sector development for county level usage. To put in place long-term measures to address industrial/

cottage sectors social economic development needs within thedevolved government framework.

To develop a framework of action with clear deliverable andtimeline for delivery in the short, medium and long-termintervention measures.


16/43

The project expected Results The project expected results are:

Five Youth Training centers (one per Constituency) areestablished and/or refurbished and equipped to offer smallbusiness and market based employability skills training andsupport programs to women and the youth.

Five YTCs have improved management and governance through

capacity building , exposure and technical support of YTC, PTAand YTC Boards 3,000 youth (2,000 male and 1,000 female) acquire skills for

employment and self-employment through YTCs and BESTtraining , are then supported to earn a living and form ,

participate in and benefit from savings and microfinancebusiness groups within the Strategic Plan period. Youth, private sector and civil society benefit from increased

collaboration and capacity on alternative youth livelihoods forwealth creation and poverty reduction in Bomet County.


17/43

Several cottage industries established, at least one per sub-county ward.

Five Business Development Centres (BDCs) established one

per Constituency. A monitoring and evaluation unit established in the County. A framework of action developed with clear deliverable and

timeline for delivery in the short, medium and long-termintervention measures

An Industrial Development Policy for Bomet County put inplace in line with the national industrial development policy.

Land will be acquired and provided for industrialdevelopment in areas of existing and high potential forindustrial development as prioritized in the NationalIndustrial Policy document. This land should be planned,demarcated and zoned it for industrial development.


18/43

Terms of Reference Consultant interpretation of terms of reference

Our understanding of the terms of reference is toundertake a technical study to develop a strategy for thesupport of the Jua Kali and cottage industries supportprogram in Bomet County and finally monitor itsimplementation. This will involve the following:

Collecting information on the Jua kali artisans in the countyand their activities; Jua kali clusters and their membership;the type of cottage industries in the county;

Carry out a Training needs assessment for all Jua Kali artisans Carry out an Assessment of any Youth training centres (YTC) in

the county to find out the courses that can be conducted, thenecessary equipment and tools, the necessary renovationsrequired and their capacities.

Capacity assessment of YTC managers, PTAs and BOG


19/43

Carry out a Market scan in the county Conduct a baseline survey to establish the number of Jua

Kali players in each sub-county, respective sub-sectors,

challenges of the sector, enlist required appropriatetechnologies, existing industrial skills and gaps to be filled. Carry out an assessment of all existing programs and

projects (completed/stalled) relating to the Micro andsmall Enterprise (industrial sector/cottage) at the county.

Identify stakeholders both at the county and at thenational levels, their functions/mandates with a view toestablish collaborative synergies for effective design andimplementation of support programs for the sector toenable the artisans move from one level of enterprise tothe next in line with the first Bomet Strategic Plan 2014 2017 and vision 2030

Review and customize existing national policies relating to

industrial sector development for county level usage.


20/43

This will then enable the consultants to: Develop a framework of action with clear deliverable and

timeline for delivery in the short, medium and long-term

intervention measures. Put in place long-term measures to address industrial/

cottage sectors social economic development needs withinthe devolved government framework.

Identify the type of cottage industries to be established bythe artisans in the county Identify investment opportunities in the county, and Assist the County/Ministry of Trade, Industry, Tourism and

Energy to establish a Monitoring and Evaluation unit Give recommendations to the County/Ministry of Trade,

Industry, Tourism and Energy on the appropriate Industrialpolicy for county in line with other national policies on the

same.


21/43

The Development of the SME/Jua Kali sector in theDevolved Governance System

Small and Medium Enterprises (SMEs) is animportant sub sector in the Kenyan economy; itemploys about 85 percent of the Kenyan workforce

(about 7.5 million Kenyans of the countrys totalemployment), but contributes about 20 percent ofthe total GDP.

The Constitution provides a new window of

opportunity to address SMEs related issues throughregulatory and institutional reforms under a new,devolved governance system as well as the Microand Small Enterprises Act 2012.


22/43

Current SME challenges at county level include:

Poor coordination of the SMEs activities; Inadequate private and public dialogue at the

county level; Poor enforcement of regulatory legislations; and Knowledge gap about national and county-level

policies interface.


23/43

To mitigate these challenges, it is recommended to : Initiate inclusive private-public dialogues; support the establishment of stronger business associations at

the county level; formulate specific county led SMEs policies aligned with the

overall national SMEs policy framework; establish tailored training institutes for SMEs at the county level; develop SMEs oriented financial institutions in counties; Establish an SME bank and/or cooperative, and an import and

export bank for SMEs; Establish Business Development Centres (BDCs) in all sub-county

wards; these centres can be used for training, mentoring and

coaching, consulting services (including accounting andauditing), resource mobilization/ cooperatives; train how tomake a strategic and/or business plans, stock specialized toolsand equipment at affordable prices.

Establish incentive/reward schemes to encourage the operators

to work hard.


24/43

Establish a unit for graduating the operators from one level tothe next one

Establish a subcontracting system between the small and largecompany

Establish intermediaries to assist small operators serve HeavyVolume Buyers with quality products/services, and also trainthem, and bring them together with microfinance organizations.

Establish a system of operators guaranteeing amongthemselves, and also the use of equipment and tools as bankcollaterals

Set aside 30% procurement for the SMEs as per the MSE Act. Provide common tools for each cluster to be used at a fee. Establish mobile training units Budget for tours to learn best practices Train a number of trainers to be used to train the operators. Assist in establishing cottage industries that use locally available

materials and equipment/machinery/tools


25/43

Develop skills upgrading courses for the artisans Establish Youth training centres and equip them for BEST

Models (Basic Employability Skills Training) Establish a research and development centre for the

sectors businesses; establish a unit to assist the artisansimprove the quality of their products/services; link theoperators with universities for the purposes of improving

their products; assist the artisans patent and/or registertheir innovations with KIPI; the R&D centre should identifypatents/innovations from KIPI and other researchinstitutions, simplify them and package for use by theartisans.

Establish an Information and Communication Technologies(ICT) system for use by the artisans

Improve the infrastructure and the working environment


26/43

Improve the regulatory business environment Establish a revolving fund for the sector Establish a unit for marketing the artisans

products/services Establish an Information and Communication

Technologies (ICT) system for use by the artisans Improve the infrastructure and the working environment

Acquire and provide adequate land for industrialdevelopment in areas of existing and high potential forindustrial development prioritized in the NationalIndustrial Policy document. This land should be planned,demarcated and zoned off for industrial development.

Take advantage of the services of the Micro and smallenterprise Authority which is already established at theNational Government level to coordinate the SMEs issuesin the country.


27/43

Monitoring and Evaluation During the implementation of the project, the County will

need to monitor and evaluate the inputs, activities, outputsand outcomes to ensure that the project objectives aredelivered as expected.

There is need therefore, to design an effective M&Eframework. It is expected that an independent ad hoc M&ECommittee will be formed to work together with theconsultants to oversee and supervise the M&E activities;this will ensure transparency and accountability.

Monitoring is an important management tool that: Helps management to pursue progress and make decisions

aimed at improving performance of a program; Allows managers to determine whether the program is on

course and likely to achieve the intended objectives; Ensures accountability to all parties involved in the

program/organization outcomes;


28/43

Through the process of monitoring, management willassess the delivery and use of resources in accordancewith the implementation plan, the achievement of the

intended outputs on a timely, cost effective mannerand the overall efficiency with which the activities areimplemented.

Evaluation on the other hand has five main purposes:

To enquire into the feasibility of a program/plan; Assess the overall impact of a program/plan; Helps to avoid the possibility of wasting money by guiding

selection of the most effective alternative; Ensures that an organization does not continue with a

project activity that is unlikely to produce the intendedoutcomes; and

Helps to detect and correct some of the factors that reducethe positive impact of the project activities.


29/43

Monitoring Methodologies Three methods will be applied in monitoring the project

implementation and performance: Data Collection and Analysis - Data will be collected and

analyzed at every level. The responsibilities for data collectionat all levels and the frequency will be determined.

Supervision - Supervision of implementation of the project willbe carried out at all levels. The Sub-county wards will submitperiodic review reports to the Ministry. These reports will bereviewed regularly against the targets to ensure that there ispositive progress.

Surveys and rapid assessment at all levels - The Ministry willorganize internal and external evaluation surveys and rapid

assessments. The results from the routine data collection and analysis

will be used to inform decision making at all levels. Thisway, the objectives of the project will be reinforced throughcorrective measures on a timely basis.


30/43

Evaluation Mechanism The project will be evaluated before, during and after implementation

to ensure that it remains feasible, relevant and likely to produce the

planned results. The evaluation will be carried out using the relevance, efficiency,effectiveness, sustainability and impact criteria.

The Relevance criteria ensure that the project continues to addressthe policy priorities of the County at all times.

The Efficiency criterion assesses the extent to which resources areused optimally. Effectiveness criterion assesses the extent to which the desired

outputs are being achieved. Sustainability ensures there is capacity to continue with the Strategic

Plan. Impact assessment is concerned with outcomes realization.

A logic framework will be designed for each key result area showingthe overall goal, purpose, outputs, activities and inputs. It will alsoindicate the objectively verifiable indicators and means of verification.It is a useful tool for evaluating project activities.


31/43

Monitoring and Evaluation Framework Generally the monitoring process (which is normally carried

out on a continuous basis) will be the responsibility of theCounty M&E Unit, while the Evaluation exercise will becarried out, preferably quarterly, by the Consultant.

In the Monitoring process the following questions will be

used to guide the M&E unit: What is being done? By whom? Target population? When? How much? How often? Additional outputs? Resources used? (Staff, funds, materials, etc.)


32/43

In the Evaluation exercise the followingQuestions will be used to guide the Consultant:

Is the content of the intervention or the activitybeing delivered as planned?

Does the content of the intervention or the activityreflect the requisite standards?

Have the intervention achieved the expectedresults?


33/43

Monitoring and Evaluation Framework (cont )

M&E will be instituted at County/Constituency,Sub-county ward and facility/organization levels.

Each level will have predetermined performanceindicators for the major key result areas.

The facilities/organization and sub-county wardwill be responsible for data collection, compilationand reporting to the Constituency/County level.

Data from Sub-county wards will be aggregated atthe Constituency/County level.

Sub-county ward performance reports will beaggregated at the County DevelopmentCommittees level .


34/43

Study Administration The Consultants will be reporting to a designated officer at

Ministry of Trade, Industry, Tourism and Energy. The Ministry designated officer will provide technical

management and oversight to the Consultants to ensurethe successful completion of the assignment.

The Consultants will be responsible for soliciting feedbackfrom the designated officer for all critical stages of theproject implementation.

The Ministry shall provide the necessary documents and

data to the consultants required for the preparation of thereport, and it will also be responsible for liaison withrelevant authorities in the five constituencies and theirsub-county wards where the study will be done in order tofacilitate obtaining of information

A h d M h d l


35/43

Approach and Methodology The approach will be mixed, including the Consultants personal

experience, review of similar tools and frameworks, interactionand interviews with key Ministry of Trade, Industry, Tourism andEnergy staff and other stakeholders.

To achieve the defined project objectives, the consultants willundertake literature (desk) review, data collection, dataprocessing and analysis, presentation of the findings and finalreport.

The consultants will prepare an Inception Report that willinclude a refined Methodology and a detailed Work Plan for theassignment for discussion with the Project steeringcommittee/Ministry of Trade, Industry, Tourism and Energy.

Once the Client and the Consultants agree on the InceptionReport, the Consultants will commence the assignment with adebriefing from relevant officials, before making detailedanalysis of the existing information from available data sources.

M th d l


36/43

Methodology The Consultant s, in consultation with Ministry of Trade, Industry,

Tourism and Energy, will: Review of relevant project documents so as to understand the project

design and contextual framework Design tools and methodology projection for data collection of both

qualitative and quantitative data; the baseline tool should captureNational and County level data in the following key areas:

Relevant National industrial policies and plans, including the BometStrategic Plan 2014-2017.

Status of key highlighted Skills Training indicators in the project workingdocument

Key social, cultural, gender and behavioral issues related to the project Project related services and interventions available to youth and women

including barriers , issues and best practice

Number, type, geographical spread and activities of the project in targetedsub-county wards. Capacity of youth and women to undertake advocacy and resource

mobilization for economic empowerment. Relevant and available or potential opportunities for the project

implementation.

Field test the baseline survey tools


37/43

Field test the baseline survey tools Train research assistants to ensure that standardized methodology and

application of the tools are fully understood Implement and supervise field data collections, data input and

cleaning: coordination with the Ministry of Trade, Industry, Tourismand Energy and project staff and other stakeholders; preparation ofmaterials and equipment; notification to Jua Kali artisans andcommunities; deployment of research assistants to the field; conduct

data processing- primary processing, comparison and validation offiles, clean files tabulations

Analyze and synthesize data; and prepare report and project indicatortracking preparation of initial report, discussion with Ministry ofTrade, Industry, Tourism and Energy and other stakeholders on initialreport, revision of impact indicators as per feedback from Ministry ofTrade, Industry, Tourism and Energy, report preparation

Submit two hard copies of well bound final report and two electroniccopies.

f


38/43

Scope of Work and Sampling The consultants will examine, assess, and make

recommendations on all aspects of the study project. The study will cover the five constituencies and their sub-

county wards. To achieve the objectives of the assignment, the

consultants will be responsible for providing criticaltechnical inputs into the implementation of this study andoverall management and supervision of the study.

Sampling - In this study all the 25 sub-county wards will becovered. Information will be sought from the capitalheadquarter of Bomet County and other agreed urbanareas. These places will be agreed upon between theconsultants and designated staff from the Ministry ofTrade, Industry, Tourism and Energy during thepresentation of the inception report.

Data processing analysis and


39/43

Data processing, analysis andPresentation of the Findings

Assessment of the knowledge, information and data gaps willbe carried out using qualitative and quantitative methods inorder to propose appropriate solutions.

Data from secondary sources regarding different studies onJua Kali operations and their skills will be descriptivelyanalyzed in relation to the objectives of the study and linkthem to the consultant experiences and knowledge in theoperation of Jua Kali sector.

Tables and graphs will be used to summarize data and will bepart of the report to be submitted.

Presentation of the Findings - The initial findings andrecommendations will be presented to the Ministry of Trade,Industry, Tourism and Energy and the County Administration;the final findings and recommendations will be presented toall stallholders in a workshop that will organized by theMinistry.

Mil t d I t


40/43

Milestone and Inputs Review of project documents and understanding the

project contextual framework Design of baseline assessment tools and data

collection methodology Pre-test and review of data collection tools

Data collection in the five Constituencies of BometCounty Analysis of data for each Constituency Preparation of preliminary report Revisions and preparation of draft report Presentation of draft report in a validation workshop

of key stakeholders and key Bomet County staff. Compilation and submission of final report

W k Pl f th P j t I l t ti Th t d i lik l t k 45 ki g


41/43

Work Plan for the Project Implementation: The study is likely take 45 workingdays to finish

Activities Duration in Weeks1 2 3 4 5 6 7 8 9

1.Preparation, submission anddiscussion of Inception Report2.Review of project documents;Team briefing/ orientation/ consultation3.Formulation of study framework

4.Develop and validate study tools withMinistry of Trade, Industry, Tourism andEnergy

5. Data collection6. Data processing and analysis

7. Draft report preparation andsubmission; receive comments fromMinistry; incorporation of commentsinto the report8. Final report preparation

9. Submission of final report

C l d li bl


42/43

Consultancy deliverables This study will be carried out by two

consultants: Dr. Kipkirui Langat, and Dr. Charles M.M. Ondieki

They will deliver the following: The Inception Report ( this has already been done ) An Interim Report A Draft Final Report A Final Report Two hard copies of final report. Two electronic copies of CDs of the final report.


43/43

ENDOF

PRESENTATION

AHSANTE SANA

1 Support Program for Jua Kali and Cottage Industries in Bomet County

Documents

Transcript of 1 Support Program for Jua Kali and Cottage Industries in Bomet County