Micro, Small, and Medium Enterprises (MSMEs) have been urged to transition from basic survival tactics to establishing structured internal systems, sound financial governance, and strategic partnerships to effectively navigate market uncertainties and drive economic transformation.
The call was made during the opening of the 3rd Annual MSME Conference, Awards, and Exhibition, organized by the Kenya Private Sector Alliance (KEPSA) at the All Saints’ Cathedral Auditorium in Nairobi under the theme ‘Beyond Survival: Building Smart and Resilient Businesses’.
The event brought together policymakers, development partners, financial institutions, and entrepreneurs to explore practical solutions for strengthening Kenya’s enterprise ecosystem.
Officially opening the two-day conference, Principal Secretary (PS) for MSME Development, Susan Mang’eni, stressed that Kenya must make bold economic decisions to unlock the country’s entrepreneurial potential, noting that MSMEs remain the backbone of employment, innovation, and industrialization.
“We cannot continue living as teenagers. Kenya is now a mature nation, and we must make bold decisions that will transform our economy,” Mang’eni emphasised.
The PS noted that nearly one million young Kenyans enter the labour market annually, while only about 200,000 formal jobs are created, underscoring the urgent need to invest in entrepreneurship and skills development.
She revealed that the government is working with financial institutions, development finance institutions, and development partners to improve access to affordable credit by restructuring risk-sharing mechanisms and expanding financing for enterprises lacking conventional collateral.
“The objective is to move businesses from survival to sustainability by creating a predictable financing environment where entrepreneurs can confidently invest, grow, and create jobs,” Mang’eni explained.
The PS announced the opening of applications for the third and fourth cohorts of the Kenya Jobs and Economic Transformation (KJET) Project, implemented in partnership with the World Bank, to support high-growth businesses in manufacturing and strategic value chains through co-investment in machinery.
She also urged established businesses to mentor young entrepreneurs under the Nyota Programme and integrate them into the supply chains.
Ms. Mang’eni encouraged enterprises to take advantage of regional markets through the East African Community MSME Trade Fair scheduled for Kigali, Rwanda.
Concurrently, KEPSA Chief Executive Officer (CEO), Carole Kariuki, noted that the conference has become a strategic platform for dialogue, collaboration, and innovation aimed at strengthening Kenya’s business landscape.
“Today’s conversation is no longer about survival. It is about growth, competitiveness, and transformation,” Kariuki echoed, urging businesses to embrace technology, artificial intelligence, and sustainability to remain competitive amid global economic uncertainties.
Highlighting the sector’s vital role in national development, KEPSA MSME Director and Managing Director of Line Plast Group, Mary Ngechu, underscored that MSMEs account for more than 95 percent of businesses and create 85 percent of jobs in Kenya.
“MSMEs are not simply participants in the Kenyan economy; they are the economy. When these SMEs grow, our economy grows,” Ngechu implored.
She challenged micro-enterprises to scale into small and medium-sized enterprises by embracing digital technologies, climate resilience, and practical skills offered through strategic platforms.
During an enterprise panel session facilitated by Maina Cheche, private sector leaders shared practical insights on building long-term, scalable resilience.
Clariece Mwikali, CEO of Arabuko Limited, emphasised that commercial sustainability depends on formalizing internal systems rather than relying solely on individual founders.
Drawing from her decade-long journey in agricultural bulk aggregation, she pointed out that operational, financial, and human resource structures are vital for business continuity.
“In order to build a resilient business, you need to build systems… create or build a business that is free of you, that is not dependent on you,” Mwikali advised.
She also advocated for responsive policy frameworks that reflect realities on the ground, particularly for smallholder farmers who struggle with compliance requirements such as eTIMS invoicing.
Echoing her remarks, Ayusa Ondieki, Operations Manager at Seven Twenty Holdings, stressed the importance of developing repeatable business models, maintaining disciplined financial governance, and fostering a strong organizational culture.
He cited regulatory unpredictability and rising compliance costs as major challenges facing growing enterprises.
“Smart businesses, when they use technology, are bound to grow. Resilient businesses, when they face adversity, find that adversity or challenge makes them stronger,” Ondieki exemplified, urging entrepreneurs to separate personal finances from business accounts.
In his remarks, Equity Bank Kenya Commercial Director Kagiso Moloi emphasized that value addition, access to finance, and market linkages are critical to helping MSMEs unlock greater value from their products.
“The money is never in the raw input. It is what the Kenyan entrepreneur transforms it into. Our job is to finance that journey from the first sale to the first export invoice,” Moloi explained.
He disclosed that Equity Bank provides unsecured working capital of up to Sh10 million based on business cash flows, alongside trade financing, digital banking, and capacity-building support.
The panel concluded with a collective call for MSMEs to build collaborative ecosystems, leverage modern technology, and utilize strategic networks to drive sustainable economic transformation across the country.
By Nancy Omondi and Ian Maina
