Challenges affecting Growth of Small and Medium Sawmillers in Kiambu

Entrepreneurs in the lumber industry have encountered many hardships. This phenomenon has been particularly observed in Third World countries where basic resources necessary for success namely investment capital raw materials and competent manpower both in the manufacturing process and marketing have been difficult to secure. The 2012 annual report by the Kenya Forest Services shows that there were 633 licensed sawmills nationally. Of this total 603 or 95.26% were categorized as small and medium scale. The problems of these entrepreneurs were compounded in 1999 when harvesting of raw materials from Government forests was banned. As a result employment in the industry dropped from about 50000 direct jobs to less than 20000 jobs and approximately 180000 loss of indirect jobs. This study concludes that bank interest rates for loans should be regulated; information technology lowers operating costs; personnel should be properly trained and appropriate plant machinery is imperative. This book will assist college students and university lecturers in the field. The book will also be useful to Government planners when preparing sustainable programmes.