Nakuru: The revised Micro and Small Enterprises policy is designed to accelerate enterprise growth, create jobs, generate wealth, and drive inclusive economic transformation across the country.
According to Kenya News Agency, Senior Assistant Director in charge of Manufacturing and Agribusiness at the Micro and Small Enterprises Authority (MSEA), Tabitha Gicheru, affirmed that the Micro and Small Enterprises (MSMEs) Policy 2026 provides a comprehensive framework for creating an integrated and enabling business environment that will support a productive, competitive, resilient, and sustainable MSME sector. Ms. Gicheru pointed out that the new policy is crafted to strengthen coordination across institutions, improve access to finance and markets, promote innovation and technology adoption, and sharpen the competitiveness of Kenyan enterprises at home and abroad.
Speaking in Nakuru during a business awareness forum organized by MSEA in partnership with SNV Netherlands aimed at strengthening policy uptake and improving support services among MSMEs, the Senior Assistant Director highlighted the Authority’s role in supporting enterprise development, noting the importance of formalization and targeted capacity building initiatives. The Authority is running a two-year initiative aimed at strengthening the micro and small enterprises ecosystem in Kenya.
The project, offered in collaboration with Investing in Young Business in Africa – Supporting Entrepreneurial Ecosystem Development (IYBS-SEED), focuses on improving policy implementation and raising awareness among young men and women entrepreneurs about existing business support needed to thrive. The project aims to ensure that the policies supporting entrepreneurship are well implemented, monitored, and responsive to the needs of young and women entrepreneurs.
Ms. Gicheru explained that the proposed MSME Amendment Bill 2025 seeks to improve access to finance, enhance competitiveness, and formalize informal businesses to drive job creation. At the center of the discussions is the proposed MSME Amendment Bill 2025, which seeks to overhaul the policy framework governing small businesses. The MSME Amendment Bill 2025 is expected to introduce measures to expand access to affordable credit, improve market access, and create incentives for informal enterprises to formalize.
President William Ruto launched the revised MSME policy last month at the Kenyatta International Convention Centre (KICC) during celebrations to mark the World Micro, Small and Medium Day. Ms. Gicheru noted that MSMEs remain the backbone of Kenya’s economy, accounting for 9 percent of all businesses in the country, creating more than 90 percent of non-farm jobs, and contributing over 40 percent of the Gross Domestic Product (GDP).
Another notable feature of the policy is the proposed National Credit Score. The government intends to build a system that places greater weight on repayment behavior and financial history when assessing borrowers, complementing conventional security such as land titles and vehicle logbooks. Ms. Gicheru added that if implemented as outlined, the approach could broaden financing options for entrepreneurs with strong repayment records but limited assets.
Stakeholders present at the sensitization forum included Kenya Revenue Authority (KRA), the Kenya National Federation of Jua Kali Associations (KNFJ), and the Kenya National Chamber of Commerce and Industries (KNCCI). Ms. Gicheru pointed to ongoing programs such as National Youths Opportunities Towards Advancement (NYOTA) and the Kenya Jobs and Economic Transformation (Kjet) Fund as key interventions supporting MSMEs alongside continued investments in jua kali worksites and Constituency Industrial Development Centres (CIDC).
SNV-Investing in Young Business in Africa – Supporting Entrepreneurial Ecosystem Development (IYBS-SEED) Project Manager Ms. Nduta Ndirangu emphasized efforts to create awareness about existing policies and challenges faced by the MSME sector. She noted that the revised policy will strengthen Kenya’s entrepreneurial ecosystem and enhance the sector’s contribution to economic growth, employment creation, and shared prosperity.
A representative of the County Government of Nakuru, Jennifer Nyambura, highlighted the Wezesha Fund, a Sh100 million loan initiative aimed at empowering small-scale businesspeople and farmers through affordable credit. The fund has already disbursed Sh76 million to cooperative societies and registered groups, with the Governor emphasizing the fund’s role in supporting grassroots economic growth.
Ms. Nyambura encouraged small traders, boda boda riders, Community Health Promoters (CHPs), women, and youth to join Saccos or registered groups to qualify for the funding. She further called for collaboration with donors, financial institutions, and the private sector to expand the fund through grants and co-financing opportunities.
