Principal Secretary Susan Mang’eni of the State Department for Micro, Small and Medium Enterprises Development told the Trade Committee that many Constituency Industrial Development Centres are struggling to become viable because of inadequate supporting infrastructure and limited funding.
By the close of the 2024-25 financial year the government had built 235 of the 290 centres planned, representing roughly 80 per cent of the target.
Of those, 152 are fully operational, 54 are only partially operational and 58 remain non-operational.
The partially operational sites lack sufficient machinery, have incomplete infrastructure and are missing three-phase electricity, while the non-operational sites are hindered by power-connection problems, land disputes, vandalism and poor access.
Mang’eni said that completing all 290 centres depends on sustained budgetary support, the availability of land and the resolution of site-specific challenges, and the department aims to finish the 232 already-built centres by the 2027-28 financial year with the remaining 58 slated for completion by 2028-29.
Electricity has emerged as the biggest obstacle; the department has paid Kenya Power KSh40.2 million to facilitate connections and has also used an alternative arrangement with the Directorate of Energy Renewable Energy Cooperation to link additional sites.
Kenya Power managing director Joseph Siror explained that delays are caused by late submission of wiring certificates, stating, “From KPLC's perspective, it is timely submission of wiring certificates…”.
In one instance a quotation of about KSh765,000 for an electricity connection rose to KSh1.767 million after a delay in providing the mandatory wiring certificate, and a further postponement in settling the revised quote increased the cost to KSh1.892 million.
MPs have raised concerns that such delays may be inflating the cost of public infrastructure, while Kenya Power noted that quotations are reviewed to reflect current material and labour prices once the original 90-day validity expires.
Beyond power, Mang’eni highlighted the need for better roads, water supply, security, fencing and modern equipment to turn the centres into productive business hubs.
Land ownership issues, including disputes and missing title documents, are also complicating implementation, prompting the department to work with the National Land Commission, county governments and other agencies.
Growing demand for equipment from young entrepreneurs has put additional pressure on the department’s budget; it has requested about KSh1 billion for the current financial year but says the allocation is insufficient, describing the unmet requests as “Requests which we cannot manage”.
The department has identified gaps in product development, certification, branding and digital marketing as barriers preventing MSMEs from accessing formal and international markets.
More than 200 CIDCs have so far created over 12,600 jobs and helped formalise more than 1,200 MSMEs.
Mang’eni said the next priority is to move the facilities beyond construction and equipment provision to become commercially productive centres that support value addition and market access.
She warned that investment in industrial infrastructure will have limited impact unless electricity and other supporting services are addressed, adding, “Unless we address the issue of access to energy, maybe we need to consider alternative energy sources.”
The department is seeking greater collaboration with Kenya Power and other agencies to speed up connections and resolve the infrastructure bottlenecks holding back the centres.
