Turkana Deputy Governor Dr. John Erus has called on Micro, Small and Medium Enterprises (MSMEs) in the county to adopt the cooperative model as a way of unlocking capital for new ventures and expanding existing businesses.
Dr. Erus made the remarks while opening a one-day sensitisation forum for MSMEs organised by the Institute of Certified Public Accountants of Kenya (ICPAK), through the local chapter of the Kenya National Chamber of Commerce and Industry (KNCCI).
He said Turkana could raise its annual market capitalisation to as much as Sh100 billion within the next few years if businesses embraced a savings and loaning culture similar to that practised by SACCOs and cooperatives.
“We have finalised research that identified key value chains open to MSMEs for the growth of Turkana. However, in order to unlock capital, MSMEs should consider forming cooperatives where members make direct contributions as savings and use the same cash to access loans at more competitive rates,” Dr. Erus said.
He urged business owners who had taken loans through the county’s economic empowerment funds but were yet to repay to do so to benefit others.
He commended ICPAK for the initiative, noting that business owners would benefit from capacity building on using cooperatives to raise capital.
Speaking at the same event, ICPAK National Vice Chair FCPA Bernard Amukah said the forum was aimed at creating awareness among the business community on public finance matters.
“In most cases, when businessmen and women hear public finance, they only think about government revenue and expenditure. They forget that they also trade with the government as suppliers or contractors. This calls for awareness of how public finance works,” he said.
Amukah also briefed participants on the governance structures for handling pending bills in Kenya and stressed the importance of regular engagement between businesses and the County Government on procurement and payment matters.
Representing KNCCI, Vice Chair Edward Okumu called on the County to institute open days to allow the business community to interact freely with county staff and learn financial management systems.
“Our hope is to have a calendar of engagements with the county. We even want the governor to attend and address emerging concerns. Through such meetings, solutions for driving the economic potential of the county would be discussed and implemented,” he said.
The forum was also attended by CECM for Finance and Economic Planning Roseline Aite, Chief Officer Robert Lotaruk, Director of Public Policy and Research Hillary Onami, ICPAK North Rift Branch Chair Dr. Ben Samoei, CPA Nelson Kore, and Turkana County ICPAK Convener Julius Lokopu.
By Peter Gitonga
