in Kenya have been given sturdy priority as they now have  access to multi-million-shilling deals awarded by local governments, as much as it is awarded to large companies.

The new  procurement laws, Public Procurement and Disposal (County Governments) Regulations 2013, gazetted by Finance Minister Njeru Githae, directs executive committees of the 47 counties to give priority to local businesses with a maximum annual turnover of Sh500,000 (about $6,000) and about 10 employees.

As from the next financial year, the 47 county governments are to share 15 per cent of the Sh837 billion ($9.8 billion) projected national revenues in the 12 months to June.

In Kenya, SMEs has helped combat the scourge of unemployment as they employ majority (about 80 percent) of the nation’s workforce while contributing about 20 percent of the country’s gross domestic output.

“County governments shall apply preference and reservations to small and micro enterprises and other disadvantaged groups that are located and operate within the counties,” Githae said.

“Local preference means the right or opportunity to select a person from an identified target group that is considered more desirable than another in a constituency, city, urban area or county.”

The establishment of counties, emanating from the new constitution, is meant to drive local development and address regional imbalance and poverty that has been linked to social strife in the country. These local units are expected to use the money to boost economic activities at the grassroot as well as other developmental projects.