Ruto bets on youth, MSMEs to drive Kenya's industrial future

‎President William Ruto has declared micro, small and medium enterprises (MSMEs) as the backbone of Kenya's industrialisation agenda, unveiling an ambitious plan to nurture thousands of young entrepreneurs through government-backed training, mentorship and financing programmes.

‎Ruto said the government was shifting its focus from merely supporting businesses to investing directly in entrepreneurs capable of transforming the country's economy.

‎"We are investing not only in business but in entrepreneurs. Through Nyota, we are building a pipeline of more than 800 young people in every ward in this country, equipped with skills, mentorship and startup capital. These are not underdogs; they are the seedbed of our next generation of companies, manufacturers and industrialists," Ruto said.

‎Speaking during the World MSMEs Day celebrations at the Kenyatta International Convention Centre (KICC) in Nairobi, the President challenged financial institutions and investors to rethink their perception of millions of Kenyans operating outside the formal banking system, arguing that they represent one of the country's greatest untapped economic opportunities.

‎"What some dismiss as no opportunity, the visionary recognises as untapped demand. The unbanked are not a risk to be kept at arm's length. They are a market waiting to be served," he said.

‎Ruto urged lenders to embrace innovation by using behavioural credit scoring, mobile technology and digital data to expand access to affordable credit for small businesses.

‎"The institution that learns to reach them through behavioural credit scoring, mobile technology and the data we already have generated will not only transform our economy but also secure its own future," he added.

‎The President said MSMEs should no longer be viewed as peripheral players in the economy but as the primary drivers of growth, employment and industrial development.

‎"The MSMEs are not the margins of the economy; they are its mainstream. The MSME is not the waiting room of our economy; it is the engine room," he said.

‎Drawing lessons from Germany, Ruto noted that over 99 per cent of businesses in the European nation are small and medium enterprises, providing nearly 60 per cent of all jobs while generating more than half of the country's economic output.

‎He observed that Germany is home to about 1,600 "hidden champions", small firms that dominate specialised global markets,demonstrating that industrial success can be built on the strength of small enterprises.

‎"Germany did not industrialise despite its small enterprises. It industrialised through them. That is our destination," the President said.

‎Ruto reaffirmed the government's commitment to strengthening entrepreneurship, expanding access to finance and creating an enabling environment for MSMEs, saying the sector remains central to Kenya's vision of creating jobs, reducing poverty and building a globally competitive industrial economy.