President William Ruto has reaffirmed his administration's commitment to placing micro, small and medium enterprises (MSMEs) at the centre of Kenya's economic transformation, saying the country's industrialisation will be built from the grassroots.
Addressing delegates during the 2026 World MSME Day celebrations at the Kenyatta International Convention Centre (KICC), Ruto said every successful economy is founded on the strength of small businesses and entrepreneurs.
"Every great economy is built from the bottom up. Kenya's will be no different. Today, we celebrate the millions of entrepreneurs whose enterprise, ingenuity, and determination will build our nation's future," the President said.
He noted that MSMEs account for nearly all businesses in Kenya and are responsible for creating the vast majority of jobs outside agriculture.
Ruto said his administration had elevated the sector by creating a dedicated State Department for MSMEs, arguing that enterprise development is now a national priority rather than the responsibility of a single ministry.
"Under my administration, the MSME is not the concern of one ministry. It is a pillar of our national transformation," he said.
The President outlined several initiatives aimed at improving the business environment, including simplifying business registration, introducing a unified business licence across counties and lowering registration costs.
He also cited investments in entrepreneurship through the National Youth Opportunities Towards Advancement (NYOTA) programme, which seeks to equip more than 800,000 young people with skills, mentorship and start-up capital.
"These are not handouts. They are the seedbed of our next generation of manufacturers and industrialists," Ruto said.
The government, he added, is also strengthening industrial value chains through the Kenya Jobs and Economic Transformation Programme by expanding enterprise clusters in leather, textiles, dairy, edible oils and other high-potential sectors.
Ruto said Kenya Industrial Estates is being restructured to draw more MSMEs into manufacturing with the goal of doubling the sector's contribution to GDP to 20 per cent by 2030. He further highlighted the construction of nearly 500 modern markets equipped with cold storage and internet connectivity to support traders across the country.
Under the Affordable Housing Programme, he said, the government has reserved 72 products for Jua Kali artisans, creating a Sh60 billion market opportunity that has already generated contracts for more than 33,000 artisans.
Looking ahead, the President called on entrepreneurs, financiers and innovators to embrace new approaches that will formalise businesses and expand access to finance.
"If we formalise our enterprises and finance them, we will convert 98% of our businesses from survival into scale. We will turn hustlers into employers, workshops into factories, and informal traders into the hidden champions of Africa," Ruto said.
He urged all stakeholders to work together to build an economy powered by innovation, entrepreneurship and inclusive industrial growth.