Kenya: Govt Seeks Public Input On New MSMEs Law

17 April 2025
Capital FM (Nairobi)
By Correspondent

Nairobi — The State Department for Micro, Small and Medium Enterprises (MSMEs) Development has launched nationwide public participation exercises on the draft MSME Policy 2025 and proposed amendments to the MSE Act 2012.

The engagement, which kicked off in Nairobi, aims to gather feedback from stakeholders across the country to help shape an inclusive and responsive policy and legal framework for the MSME sector.

Speaking during the launch, Principal Secretary Susan Mang'eni said the draft policy outlines key priorities such as strengthening regulatory and institutional frameworks, streamlining business processes, and enhancing access to finance, markets, and technology.

It also aims to promote innovation and build capacity to improve MSME competitiveness locally and internationally.

Follow us on WhatsApp | LinkedIn for the latest headlines

"Inclusivity is at the heart of this policy. We are committed to supporting women, youth, persons with disabilities, and marginalized communities through targeted interventions that address their unique challenges," PS Mang'eni said.

Kenya's MSMEs account for over 90 percent of all businesses, contribute about 30 percent to the GDP, and employ more than 15 million people.

Despite their critical role, they face persistent challenges, including limited access to credit, market linkages, and skills gaps.

Miss Khamati Mugala, Head of ILO East Africa (Tanzania, Rwanda, Burundi), emphasized the need to shift from quality to productivity to reduce underconsumption of MSME products.

MSEA Chairman James Mureu highlighted the need to formalize informal enterprises to combat stigmatization and enhance business sustainability. MSEA CEO Henry Rithaa was also in attendance.

Dr. Christopher Zipfel, Programme Director at GIZ, reiterated the agency's support for MSMEs through technical assistance and resource mobilization to strengthen public-private partnerships.

Participants called for the policy to reflect inclusive language and challenge stereotypes that label informal sector players as unskilled.

"These individuals have mastered practical skills that are equally valuable to our economy," said one stakeholder.

Key proposed amendments to the MSE Act include incorporating medium enterprises to complete the transition cycle, adopting a value chain approach, and integrating devolved governance through an intergovernmental working group.

The public participation forums, supported by GIZ and ILO, will continue in counties across the country to ensure diverse voices shape the future of Kenya's MSME sector.

Read the original article on Capital FM.

Tagged:
Copyright © 2025 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 400 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.