Kenya Private Sector Alliance (KEPSA) CEO Carole Kariuki, addresses delegates at KEPSA's 3rd Annual SME Conference, Awards and Exhibition/ HANDOUT
The government and private sector have unveiled a coordinated plan aimed at helping Kenya's 7.4 million micro, small and medium enterprises (MSMEs) overcome an estimated Sh3 trillion financing gap, as they push businesses to move beyond survival and become globally competitive.
The announcement was made on Thursday during the opening of the third Annual SME Conference, Awards and Exhibition organised by the Kenya Private Sector Alliance (KEPSA) in Nairobi.
Speaking on behalf of Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya, MSME Development Principal Secretary Susan Mang'eni said the government was implementing new interventions to support enterprises as they transition into regional and international markets.
"As we move MSMEs from survival to growth, we must rethink how we support them. Formalisation should be a pathway to opportunity, supported by flexible policies, appropriate taxation and incentives that enable businesses to grow," Mang'eni said.
She also challenged established companies to mentor young entrepreneurs emerging from government programmes such as NYOTA to strengthen the country's enterprise ecosystem.
The initiative brings together policymakers, financiers, development partners and entrepreneurs to address longstanding barriers facing small businesses, including limited access to affordable credit, low levels of formalisation, restricted market opportunities and inadequate digital skills.
The conference comes as MSMEs continue to play a central role in Kenya's economy, employing an estimated 15 million people and contributing about 40 per cent of the country's Gross Domestic Product. Despite their contribution, many businesses continue to struggle with financing, regulatory hurdles and limited market access.
Among the initiatives is the World Bank-supported Kenya Jobs and Economic Transformation (KJET) project, which seeks to strengthen enterprise growth while creating employment opportunities.
KEPSA Chief Executive Carole Kariuki said supporting MSMEs requires more than isolated interventions, calling for integrated systems that combine finance, skills development, technology and market opportunities.
"KEPSA's commitment to enterprise development goes beyond isolated interventions. We are building ecosystems where access to finance, market opportunities, skills and enterprise support reinforce one another to help businesses grow," Kariuki said.
She cited initiatives such as the Ajira Digital Programme, the Kenya AI Skilling Alliance and the MSME Financing Gateway as part of efforts to build resilient enterprises across all 47 counties.
The financing challenge also dominated discussions at the conference.
Equity Bank Commercial Director Kagiso Moloi said closing the estimated Sh3 trillion MSME financing gap would require lenders to provide products tailored to the needs of small businesses.
He said the bank had introduced unsecured working capital financing, local purchase order financing of up to Sh10 million and port duty financing to help businesses avoid supply chain disruptions.
"Finance alone isn't enough. MSMEs need access to markets, technology and the right partnerships to grow. Our role is to connect these threads so that when a business is ready, everything is aligned to help it move from survival to sustainable growth," Moloi said.
The conference also heard calls for policies that encourage voluntary formalisation while helping businesses adopt emerging technologies such as artificial intelligence.
Konrad-Adenauer-Stiftung Kenya Country Representative Victor Oteku said MSMEs remain the backbone of Kenya's economy and require an enabling environment to become more resilient.
"MSMEs are creating livelihoods and offering hope to millions of young people and women. We must move beyond survival and build enterprises that are resilient enough to withstand uncertainty and contribute to a stronger economy and society," he said.
The two-day conference is expected to conclude with the SME Innovation Excellence Awards, which will recognise entrepreneurs and organisations driving innovation, sustainability and enterprise growth across the country.
