Project Performance Assessment Report - Kenya Micro and Small Enterprise Training and Technology Report

This is a Project Performance Assessment Report (PPAR) of the Micro and Small Enterprise Training and Technology Project (MSETTP) in Kenya. It states that:

• The long-term objective of the project was to enhance the entrepreneurial development of the private sector and increase employment and incomes among informal sector (Jua Kali) micro and small scale enterprises (MSEs);
• Specific objectives were to:
  • Develop and implement policies to establish an enabling environment for entrepreneurial development;
  • Provide access to skills training and technology for MSEs;
  • Facilitate technological innovation in the sector;
  • Improve the operational and managerial capacity of institutions and programs that support the sector.

The paper lists the key components of the project:

• A Voucher Training Program (VTP) to subsidize skills and management training to Jua Kali workers;
• Development of the private market for training services;
• Increase in availability of microfinance, etc.

It then examines details of the project such as:

• Slow implementation;
• Unclear original design;
• Project acceleration after restructuring;
• Deficiencies in the VTP, corruption and delays.

It also rates different aspects of the project:

• Project outcome - moderately unsatisfactory;
• Institutional development impact - modest;
• Sustainability - unlikely;
• Bank performance - unsatisfactory;
• Borrower performance - unsatisfactory.

The paper concludes by listing lessons learnt from the project:

• Understand markets and institutions before designing the intervention;
• Choose the least-cost intervention;
• Favour private sector management;
• Allow time to learn from the pilot phase.