APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA 2.25 Progress has also been made in terms of effective leadership and accounting of organisations, in the monitoring of ethical conduct within organisations, ensuring that organisations treat stakeholders fairly and equitably, and in the quality and quantity of organisations behaving as good corporate citizens. 2.26 Family-owned businesses and Micro, Small and Medium Enterprises (MSMEs) make a vital contribution to the national economy. Examples of family owned enterprises in Kenya include Tuskys Supermarket, NIC Bank and Access Kenya2. The companies are owned wholly or substantially by members of the same family. These enterprises are to be found in the financial, agricultural, manufacturing, education and real estate sector. In 2015, the value of the MSME’s output is estimated at KSh 3,369.1 billion (US$33.69 billion) against a national output of KSh 9,971.4 (US$77.71 billion) representing a contribution of 33.8%. 2.27 The informal sector is essential to the Kenyan economy. According to data from Kenya’s Economic Survey 2015, the informal sector employed 11.8 million people in 2014 against 2.4 million in the formal sector. The economic surveys further note that the sector had expanded over the years to include people engaged in small-scale manufacturing, transport, information, communication and technology. 2.28 However, that is the part of the economy that has been often not taxed or monitored by the government or regulatory bodies and is not included when computing the Gross National Product. A number of the family owned businesses, micro and small sized enterprises fall under this category. 2.29 A positive development is that most small firms now register with the County Governments. Kenya Revenue Authority (KRA) indicates that it will be easier to integrate them into the tax bracket enabling the Government to meet its financial obligations. Incorporating SMEs into the tax bracket is part of KRA’s move to expand the tax base in an ambitious plan that seeks to raise the number of active tax payers from 1.6 million to 4 million. 2.4 Socio-Economic Development 2.30 Kenya has taken significant steps towards sustained socio-economic development since achieving independence in 1963. These efforts, as acknowledged by the APRM 2006 Country Review Report, have contributed to the promotion of high growth and socioeconomic advancement. 2.31 The country has designed and implemented a series of policies, strategies and programmes to steer the course of its socio-economic development agenda. A new Constitution was promulgated in 2010 to promote good governance as well as address development challenges. http://www.africog.org/blog/transitioning-from-family-owned-to-multi-billion last accessed on 23rd May 2014 at 4:49 p.m. 2 | 39 |