Discussion Paper No. 53 of 2005 on Misallocation of Workspaces for MSEs in Kenya: Lessons and Models

Abstract

One of Kenya’s development goals is to provide an enabling environment for both local and foreign investors. An important element of such an environment is the physical infrastructure especially land and workspaces. An effective and functional physical infrastructure, is critical for productivity and competitiveness of both small and large enterprises. This paper examines the theories and practices of micro and small enterprises (MSEs) workspaces provision in Kenya and elsewhere and distils some lessons. These lessons have been used to design a framework for workspaces provision. Review of theories and practices reveal that state institutions, both central and local, continue to marginalise and exclude the sector from mainstream policy and regulatory framework, viewing it as a temporary phenomenon. Provision of land and workspaces are the two main infrastructural concerns for micro and small Enterprises in Kenya, which continue to act as a constraint to the growth of the sector...