On March 26 2020, President Kenyatta announced a raft of stimulus packages intended to safeguard Kenyan businesses. The measures were intended to provide relief to corporates and SMEs in Kenya . A detailed look at the MSMEs profiles in Kenya reveals the following:
At the SME Support Centre we then asked ourselves the following questions in light of the Presidents directives.
- In light of the recent economic downtime faced by MSMEs was the proposed fiscal/monetary measures appropriate, adequate and comprehensive?
- How will the enforcement of some of the measures look like ?
- Ultimately will the measures result in actual direct cash flowing to the MSMEs in Kenya?
With the above questions in mind we sought to analyse the effectiveness of these measures which in our context means the impact the measure will have on the direct cash flows of the MSMEs in Kenya.
Our analysis and conclusions on the effectiveness of the policy measures is as shown below: