The Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Development Cabinet Secretary Wycliffe Oparanya has called upon lending institutions to accord small businesses flexible terms in order to enable them access credit.
Oparanya noted that many small businesses cannot afford credit due to stiff requirements adding that many of them have been forced to imitate startups using their own funds.
The CS who was speaking in Kisumu said the journey from micro to medium enterprise requires deliberate collaboration.
“Government alone cannot achieve this transformation, financial institutions must rethink risk models, private sector players must open value chains, development partners must align interventions, and county governments must provide enabling environments.” He said.
Oparanya said MSME growth is not merely an economic objective but a national and continental transformation agenda.
“When enterprises grow, families rise, communities prosper and our nation advances. Kenya’s ambition, aligned with Africa’s broader economic vision, is to become a competitive, innovation-driven economy that contributes meaningfully to global trade.” He said.
He called for an ecosystem where every entrepreneur has access to finance, markets, technology, skills and a supportive policy framework, saying that SMEs are the backbone of Kenya’s economy.
He said they contribute over 40 percent of the GDP and create the majority of employment opportunities across the country yet many remain informal, under-capitalised and constrained in their ability to scale.
As a Ministry, he said they are establishing a clear and deliberate growth pathway for MSMEs.
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He said the revitalisation of Constituency Industrial Development Centres (CIDCs) and the establishment of County Aggregation and Industrial Parks will provide modern equipment, production spaces and value chain support, enabling enterprises to enhance quality, boost productivity and compete effectively.
The CS further revealed that the ministry is embracing the green economy as a key driver of sustainable MSME growth. Climate resilience, renewable energy, sustainable agriculture, waste management and eco-friendly manufacturing must define the future of enterprise. MSMEs are central to this transition, and we are creating incentives, partnerships and financing mechanisms that enable them to adopt sustainable technologies and access emerging green markets locally, regionally and globally.
He said access to markets remains a fundamental constraint.
“I remain committed to strengthening regional trade and deepening the cooperative movement across Africa. Our focus is firmly aligned with the African Continental Free Trade Area (AfCFTA), which provides MSMEs with access to a market of over 1.3 billion people.” He noted.
In this regard, he said Kenya continues to champion the removal of non-tariff barriers and the simplification of trade systems to unlock seamless cross-border trade. Through AfCFTA, our MSMEs can integrate into continental value chains, expand exports and transform from local players into global competitors.
By Fredrick Odiero
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