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{
    "id": 1495653,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1495653/?format=api",
    "text_counter": 38,
    "type": "speech",
    "speaker_name": "Embakasi North, UDA",
    "speaker_title": "Hon. James Gakuya",
    "speaker": null,
    "content": "administrative challenges. The main challenge was that manufacturers did not apply for renewal on time or KEBS was not able to process the applications within the turn-around time in the customer service charter. The effect of this is that client businesses and market supply chains by extension were disrupted, thus leading to loss of business opportunities and undue shortages of the respective goods. KEBS, therefore, revised the validity period to two years, while putting mitigation measures in place to ensure product quality is maintained and improved. 2. The impact of extending the validity period, especially for SMEs. It follows that the extension of the validity period of the standardisation mark was bound to have either positive or negative impacts, especially on product quality and fair business practices. That being the case, KEBS was well prepared to deal with the two aspects and any other matter that would have cropped up. 3. Product quality. The main objective of increasing the validity period of the standardisation mark permits from one year to two years was to reduce the disruption of business that was occasioned by administrative and logistical issues that are associated with permit renewal processes. 4. Fair competition. The decision that annual fees would remain the same and be paid for two years upfront at the time of renewal applies across the board for both large firms and SMEs. However, SMEs continue to enjoy preferential treatment whereby a payment of Ksh10,000 covers up to three products while their competitors' counterparts classified as large firms would be paying up to Ksh85,000 for the same three products. On the second question on the justification for improving back-pay penalties on business restarting after COVID-19-related shutdowns, the scheme has been imposing back- pays rather than penalties on businesses since its inception in 2008. The justification for this is that some businesses would want to delay permit renewal, while continuing to display the mark. To enable KEBS to defray the overhead cost of administering the scheme, it becomes necessary that full payment is made from the time the permit expires. However, KEBS is aware that there could have been a stoppage of manufacturing for economic reasons or other reasons. In such cases, the policy of KEBS is clear that manufacturers only need to make formal communication to KEBS to that effect and no such charges will accrue. The COVID-19 Pandemic presented unique and unprecedented socio-economic challenges, while KEBS had put in place temporary measures to mitigate the challenges as per the Government policy. The KEBS acknowledges that some of the effects have lingered long after the pandemic or just taken new forms. Considering the above, KEBS has been granting waivers to SMEs who present requests in writing and have demonstrated closure of operations. In such cases, the SMEs are allowed to apply for the standardisation mark and are only charged the application fees without any arrears. Let me go to the last question – that is question three. It is about the measures the Ministry of Investment, Trade and Industry is taking to ensure the regulatory environment supports SMEs in economic recovery rather than penalising the recovery of the business. Initiatives to support SMEs include: The Ministry of Investment, Trade and Industries has put in place comprehensive measures to support SMEs. The State Department for Industry, through KEBS, has continued to support SMEs through the following: 1. Training and coaching of SMEs through the National Quality Institute. 2. Dissemination of Kenya standards to SMEs through physical workshops, online webinars and in-house coaching during factory assessments."
}