The government has unveiled a new set of measures to boost Kenya’s small and medium-sized enterprises (SMEs), with a focus on financial access, market opportunities, digital growth, and climate-friendly practices.
Cooperative and MSME Development Cabinet Secretary Wycliffe Oparanya outlined the initiatives during the 4th Kenya Public-Private Sector MSMEs Dialogue at the Jaramogi Oginga Odinga Sports Complex in Kisumu.
“This is a very important sector,” Oparanya said. “At the moment, 17 million people are active in it, contributing nearly 40 per cent of our GDP. If we want to create jobs and wealth for our people, this is where the focus must be.”
Oparanya emphasized that county governments would be central to these reforms, noting that small enterprises cannot be supported from Nairobi alone.
“All these businesses are somewhere in a county. Unless we involve counties, our mission will fail,” he said.
Agreements with several counties have already been signed, with plans to include all 47 counties in the programme.
A key part of the strategy is expanding access to credit, a challenge that has long affected small traders.
The CS highlighted digital lending platforms, women’s credit groups, and funding from institutions such as the Micro and Small Enterprise Authority, Kenya Industrial Estates, and Kenya Development Corporation.
“You can now access loans through your phone without collateral, and your credit limit grows as you repay,” he said, noting that larger SMEs can borrow up to Sh100 million through KDC.
He also stressed financial discipline: “If you want to do good business, you must know how to keep your records. And for a good businessperson, you must borrow and repay.”
The government is also helping SMEs tap into larger markets, including opportunities within the East African Community.
Trade fairs held recently have demonstrated how producers can connect with suppliers and buyers across the region’s 300-million-person market.
Oparanya highlighted infrastructure improvements, including plans for 400 modern markets and expanded internet connectivity, saying, “You cannot do business unless you are able to use your phone.”
He further encouraged environmentally friendly business practices, urging the adoption of clean energy solutions.
“There is a reality of climate change.We are promoting systems like solar and supporting businesses with proposals that take care of the environment,” he said.
Youth entrepreneurship is another priority.
The government’s pilot programme in Western Kenya is expected to expand nationally, aiming to support young entrepreneurs to survive and create jobs for others.
“We hope that about 70 percent of them will survive and create employment for others,” Oparanya said.
The CS concluded by calling for closer cooperation between national and county governments to reduce harassment and ensure a predictable business environment.
“Small businesses are a life for someone,” he said. “If we support them, the economy of Kenya will grow.”
