Kisumu: The government is committed to supporting Micro, Small and Medium Enterprises (MSMEs) in the country and helping them to thrive, Cabinet Secretary (CS), Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development; Fellow Certified Public Accountant (FCPA) Wycliffe Ambetsa Oparanya has said. He emphasized the importance of MSMEs as the backbone of Kenya’s economy, contributing over 40 percent of the GDP and creating the majority of employment opportunities across the country.
According to Kenya News Agency, Oparanya advised MSMEs in the country to formalize their operations to access funding and other benefits essential for growth. Speaking during the 4th MSMEs Connect event in Kisumu, the CS noted that growth must begin with structured support, and his ministry has established a clear growth pathway for MSMEs. The three-day event gathered MSMEs from around the country to interact and showcase their products.
Oparanya highlighted the government’s focus on financial inclusion, formalization, business skills development, and market readiness for micro enterprises. Through the Hustler Fund, entrepreneurs have been accessing affordable credit, building credit histories, and gaining confidence to expand their ventures. The government is also strengthening mentorship, business development services, and access to shared infrastructure to facilitate the transition from micro to small enterprises.
He added that the government is embracing the green economy as a key driver of sustainable MSME growth, with a focus on climate resilience, renewable energy, and eco-friendly manufacturing. MSMEs are central to this transition, with incentives, partnerships, and financing mechanisms enabling them to adopt sustainable technologies and access emerging markets.
The CS emphasized the importance of market access for MSMEs, aligning efforts with the African Continental Free Trade Area (AfCFTA) to provide MSMEs with access to a market of over 1.3 billion people. Oparanya urged Kenyan enterprises to seize opportunities beyond borders and integrate into continental value chains to expand exports.
Oparanya also highlighted the importance of technology adoption for MSMEs to accelerate growth and improve efficiency. The government is investing in platforms like MSME Connect and digital payment ecosystems to ensure MSMEs operate within a supportive, tech-enabled environment.
He called for collaboration between the government, financial institutions, private sector players, development partners, and county governments to modernize Africa’s private sector and position MSMEs for global competition. All stakeholders were urged to work together to build an ecosystem where entrepreneurs have access to finance, markets, technology, skills, and a supportive policy framework.
Kisumu Governor Prof. Peter Anyang’ Nyong’o shared the county’s strategic steps in creating an enabling environment for MSMEs, including capacity building initiatives, mentorship programs, and policy enactments like the Buy Kisumu, Build Kisumu Policy. The county is also implementing the Entrepreneurship Clinics Programme to identify challenges and design practical solutions for MSMEs.
The governor emphasized the role of MSMEs in driving economic growth, creating jobs, and supporting innovation. With over a million youths entering the labor market annually, the government aims to address unemployment through initiatives like the Hustler Fund and youth enterprise loans.
Data from the Ministry of Cooperatives and MSMEs Development shows that MSMEs power over 80 percent of Kenya’s workforce and contribute nearly 40 percent of the GDP, yet many face challenges accessing affordable credit. The unlicensed segment accounts for a significant portion of MSME employment.
