The government, through the State Department for Micro, Small, and Medium Enterprises (MSME) Development, has launched public participation and stakeholder engagement forum aimed at validating the draft MSME Policy and MSE Act 2025 with a focus on improving access to finance, easing regulatory burdens, expanding market access, and upgrading infrastructure to shape an inclusive and dynamic MSME ecosystem.
Speaking during the validation, Principal Secretary, state department for MSMEs, Susan Mang’eni, stated that the exercise will provide a platform for refining the policy and proposing amendments to the Act.
According to Mang’eni, the policy includes strengthening the institutional and regulatory framework, creating an enabling environment, promoting capacity building and innovation, enhancing market linkages, and fostering equity and inclusivity.
In order to actualize the policy goals, Mang’eni noted that a comprehensive legal framework will be required to address gaps in the current MSE Act 2012 and also strengthen the institutional frameworks.
“Our vision is to build a highly productive, diversified and competitive MSME sector that drives economic transformation and social empowerment,” remarked Mang’eni.
In her remarks, she added that with the successful implementation of the policy, the MSMEs Policy 2025 will serve as a roadmap for achieving this vision.
“MSMEs play a pivotal role in the economy,” Mang’eni stated, announcing that over 90 percent of the total enterprises in Kenya contribute to approximately 30 percent of the national Gross Domestic Product (GDP), employing over 15 million people.
“These businesses are not just economic drivers, they are lifelines for countless families and a bedrock of innovation, resilience, and entrepreneurship in our nation,” she said.
Mang’eni, noted that MSMEs continue to face significant challenges, including access to affordable credit, limited market linkages, and capacity gaps that hinder their competitiveness.
“With developed proposed amendments to the MSE Act of 2012, the government priorities include value chain approach and cluster development, devolved governance structure, inclusion of medium enterprise and to address persistent MSME challenges and emerging issues.” she highlighted.
Additionally, she said that Kenyans’ participation will be a testament to the shared commitment to the advancement of MSMEs in Kenya.
“Let us work together to ensure that this policy reflects the aspirations and needs of all players in the sector,” emphasized Mang’eni.
Mang’eni also reaffirmed commitment to the successful implementation of the policy through a coordinated approach, leveraging the strengths of various stakeholders.
By Joan Ogolla and Muhati Venesa
