The ILO has commission Simon White to facilitate the programme planning for the second phase of the NORAD-funded Law-Growth Nexus II: Labour Law and the Enabling Business Environment for SMEs in Kenya and Zambia. From 28 November to 1 December 2011, he facilitated a programme planning workshop involving all programme staff and other stakeholders in Mombasa, Kenya. During this workshop, he provided a presentation on the key issues affecting labour law and MSE growth, drawing from recent findings in Africa and Asia. He also presented the results of his independent final evaluation of the first phase of this programme.

The overall objective of the project is to contribute to a more enabling policy environment for SME development in Kenya and Zambia. The overall outcome is more and better jobs in the SME sector of these two countries.

The immediate project objectives are (1) to nurture respect for the rule of (labour) law among SME in priority sectors, (2) to strengthen the capacity of ILO constituents to engage in social dialogue on the nexus between Labour Law compliance and SME development, (3) to facilitate sector-specific regulatory reform, and (4) to strengthen the capacity of SME to comply with the revised labour law. The corresponding immediate project outcomes are improved perceptions among SME about the rationale underpinning the labour law of the country, sector-specific regulatory reforms of the Labour Law that are driven by social dialogue among ILO constituents and informed by knowledge about international best practice, sector-specific institutional structures that better balance the traditional focus on sanctions and monitoring compliance with information, education and incentives and SME in priority sectors that grow their businesses as a result of increased compliance levels.

KEY WORDS: enabling business environment, labour law, MSE, SME, Kenya, Zambia, employment, job creation, Decent Work