Policy Brief No. 10 of 2007 on Improving the Technology Competitiveness of Small Enterprises in Kenya

Abstract

The Sessional Paper No. 2 of 2005 on Development of Micro and Small Enterprises (MSEs) for Wealth and Employment Creation for Poverty Reduction singles out restricted levels of technology as one of the major constraints to the growth of MSEs in Kenya. The Session al Paper further states that most MS Es face limitations associated with use of inappropriate technology, lack of information on existing technologies, and inadequate institutional capacity to support adaptation and absorption of modern technological skills. There is also a wide gap between the suppliers of technology and the end users of technology products. In Kenya, effective transfer of technology is limited because decisions relating to most aspects rest with large local firms and multinational corporations, even though these firms have weak linkages with MSEs. Without access to technology, MSEs lack the capability to produce efficiently, meet deadlines, upgrade product quality and evolve new product designs.