Government launches countrywide review of MSME Act, Policy 2025,

The national government has launched a countrywide public participation and stakeholder engagement campaign to review the draft Micro, Small and Medium Enterprises (MSME) Policy 2025 and the amended MSE Act.

The review is meant to eliminate barriers hindering the growth of small businesses across the country.

The forum which was held at Lowland Hotel in Ndagani, Tharaka Nithi County recently, is one of many being conducted in all counties, as the State Department for MSME Development seeks views from stakeholders in every region to strengthen Kenya’s MSME ecosystem.

The public participation is meant to ensure the working environment of small scale traders is enhanced by amending existing laws in a bid to suit the changing times.

Micro and Small Enterprises Authority (MSEA) Assistant Director for Strategy and Planning Reynold Njue said the forums aim to create awareness, make amendment, get views and feedback about the new policy direction while collecting meaningful input from MSME stakeholders.

He said they plan to strengthen the regulatory framework in order to ensure that whatever intervention they bring is able to provide enough support to enable the business expand and grow.

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Njue said the small scale traders will be able to get affordable finances, decent business infrastructure, and access market both locally and globally and improve productivity and competitiveness adding that MSME is the engine of the country’s economy because it contributes 40 percent of the national economy and employs 83 percent of the population.

“This sector is the engine of our economy with over 90 percent of enterprises in Kenya belonging to the MSME category. We want to ensure that any intervention agreed upon is realistic, inclusive, and capable of supporting business growth, enhancing infrastructure, and expanding market access both locally and globally. Public participation is being carried out across all 47 counties to ensure that no voice is left out in shaping the future of the sector,” said Njue.

Tharaka Nithi County Commissioner David Gitonga said the government is committed in ensuring small scale traders access resources, operate in a humane environment, categorized to get waivers, improve their welfare and kick start the cottage industries.

He said the government will create an enabling environment for small businesses, including access to resources, better infrastructure, and a simplified regulatory framework.

“The government promised to ensure the working environment of small scale traders is enhanced by amending existing laws in a bid to suit the changing times. We are committed to ensuring that small-scale traders operate in humane conditions with access to tools that help them grow,” said Gitonga.

He encouraged the youth to embrace digital and remote work opportunities noting that the government has strategies in place to assist them, adding that what youths need is internet and the willingness to work in order to enable them operate from their mobile phones and laptops noting the government has already opened many digital hubs countrywide.

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Gitonga pointed to government initiatives such as the Hustler Fund and Farming as a Business (Kilimo Biashara) campaign as avenues young people can explore for empowerment, instead of engaging in destructive behavior, urging the youths to embrace farming because it is one of the biggest employers and income earners.

Isiolo County CEC for Tourism, Trade, Cooperatives and Enterprises, Lawrence Mwongera, praised the participatory approach, saying it respects and includes everyone’s voice.

He urged young people to actively get involved in entrepreneurship, noting that many have yet to take up opportunities in the sector, which has often been left to older generations.

He also stressed the importance of peace and infrastructure such as roads and electricity for sustainable business growth.

The ongoing review of the MSE Policy 2025 and the proposed amendments to the MSE Act 2012 are expected to create a robust and inclusive MSME framework that supports job creation, wealth generation, and Kenya’s broader economic transformation.

By John Majau.

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