Cabinet Secretary for Cooperatives and MSME Development Wycliffe Oparanya has underscored the importance of micro, small and medium enterprises (MSMEs) in driving Kenya’s economic transformation, noting that the sector remains central to the government’s Bottom-Up Economic Transformation Agenda (BETA).
Speaking during the 25th East African Community (EAC) MSME Trade Fair at Uhuru Gardens, Nairobi, Oparanya said MSMEs contribute about 30 per cent of Kenya’s Gross Domestic Product (GDP) and account for over 90 per cent of all jobs in the country. The event kicked off on 7th to 16th November 2025.
He said the government is committed to addressing key challenges facing the sector, including limited market access, inadequate financing, and technological barriers, to enhance productivity and competitiveness.
“This year’s theme on advancing innovation and regional value chains aligns with Kenya’s economic priorities, including agricultural transformation, MSME development, affordable housing, universal healthcare, digital infrastructure, and the creative economy,” Oparanya noted.
He added that the trade fair provides a vital platform to celebrate the resilience of small enterprises while facilitating dialogue among stakeholders on access to finance, skills development, and technology adoption.
“The region’s greatest opportunity for addressing youth unemployment lies in entrepreneurship—particularly youth-led innovation and enterprise development,” he said, calling for stronger collaboration among policymakers, financiers, and development partners to build a more supportive ecosystem for MSMEs.
Cabinet Secretary for East African Community Affairs Beatrice Askul said the 25th MSME Trade Fair coincides with Kenya’s tenure as EAC chair, providing a chance for member states to assess progress and strengthen regional trade ties.
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She noted that since its inception in 1999, the annual fair has evolved into a major platform for MSMEs to access markets, improve product quality, and build regional networks.
According to Askul, MSMEs contribute over 60 per cent of employment and 29 per cent of regional GDP, playing a critical role in poverty reduction, and women and youth empowerment.
African Continental Free Trade Area (AfCFTA) Secretary-General Wamkele Mene commended Kenya for its leadership in advancing the pan-African economic integration agenda and supporting MSME development.
Mene said the AfCFTA has been ratified by 15 countries, with over 25 tariff offers gazetted, paving the way for increased intra-African trade in key sectors such as agro-processing, textiles, manufactured goods, and pharmaceuticals.
He revealed that the AfCFTA Secretariat has secured a $1.2 billion facility to finance the automotive industry, supporting local vehicle and component production.
“In partnership with the Master Plant Foundation and TradeMark Africa, we are implementing a four-year fisheries programme in Kenya, Uganda, Tanzania, and the DRC that will create 240,000 jobs and boost fish trade by $100 million by 2030,” Mene said.
He added that AfCFTA had endorsed a ban on second-hand clothing imports to protect Africa’s textile industries and attract new investments. The Secretariat is also developing a pooled procurement mechanism with the Africa CDC to strengthen pharmaceutical production across the continent.
Mene emphasized that MSMEs—responsible for 80 per cent of jobs and over half of Africa’s GDP—must be placed at the heart of the continent’s industrial transformation.
“Investment in value chains such as agriculture, automotive manufacturing, and pharmaceuticals will unlock more than $130 billion in opportunities across Africa,” he stated.
The Trade Fair brings together exhibitors, policymakers, and entrepreneurs from across the EAC Partner States to showcase innovations, products, and services that strengthen regional value chains and foster sustainable growth.
By Obegi Malack
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