Traders in Nairobi are set to benefit from a multi-million-shilling stimulus package to be rolled out by Governor Johnson Sakaja to jumpstart the capital’s economy, which has been in a slump.
During the recently concluded East Africa MSME Trade Fair, Sakaja announced that the package will target small and medium-sized enterprises to help them cope with the tough economic environment.
The governor did not however specify when the programme will be rolled out and how much is involved.
“I will soon be rolling out the Biashara Stimulus Programme, which is at the heart of offering affordable financing, skill development, digitisation, market access and enterprise formalisation to traders,” he said.
“We will be rolling it out with two strategic partners who have already signed contracts. The programme will subsidise the cost of credit to MSMEs across all the 85 wards,” the governor added.
To qualify for the package, an MSME must have been in operation for at least two years. All beneficiaries will also undergo a three-day training on business and entrepreneurial skills.
Sakaja said supporting small and medium-sized enterprises was crucial since they are “the backbone of the city’s economic life”.
He added that the sector generates employment, fuels innovation, strengthens value chains and drives domestic and cross-border trade.
At the same time, Sakaja said his administration is working to improve the business environment and ensure Nairobi becomes a city where enterprises can start, grow and thrive.
This will be achieved by relaxing regulatory barriers that make it costly and time-consuming to operate in the city.
One of the key reforms is the Unified Business Permit, which consolidates multiple business licences into a single document.
“The permit simplifies operations for business owners and has enhanced our revenue collection. Currently, we have 190,925 registered businesses under UBP, of which 95,022 are either SMEs or MSMEs,” the governor said.
Sakaja also highlighted infrastructure as a core element of his administration’s plan to support traders.
He said City Hall is ramping up the construction and modernisation of market infrastructure to ensure that business owners have accessible and clean spaces to operate from.
“To encourage growth in this sector, we committed to building 20 new markets and I can confirm we are on course to deliver this promise, with more than half currently under construction,” he said.
“As a county, we currently have six markets underway—Mutuini, Kahawa West and Juja are almost complete, while Karen, Dandora E and the Miraa markets are ongoing.”
The national government is supporting the county in constructing the Kware Road–Gikomba market, which is 95 per cent complete and expected to be finished before the end of the year. Other ongoing projects include the Mathare North, Maji Mazuri, South B and Riruta markets.
“In the pipeline are Jogoo Road, Kangemi and Toi markets, which will provide additional trading space for MSMEs and bring products and services closer to Nairobi estate residents,” Sakaja said.
The governor said the Biashara Stimulus Programme, combined with improved infrastructure and simplified licensing, is expected to help stabilise small and medium-sized businesses and position Nairobi as a more competitive urban economy.
Instant Analysis
Sakaja’s initiative signals a renewed county-level focus on MSMEs as the key engine of Nairobi’s recovery. Its impact, however, will depend on transparency, timely rollout and sustained access to affordable credit for small traders.
