Kenya’s government and private sector leaders have urged the country’s 7.4 million micro, small and medium enterprises (MSMEs) to move beyond survival strategies and embrace digital innovation, formalisation and regional expansion as part of efforts to accelerate economic growth.
Speaking at the opening of the third Annual SME Conference, Awards and Exhibition organised by the Kenya Private Sector Alliance (KEPSA), officials said strengthening the competitiveness of small businesses is critical to creating jobs and driving sustainable economic transformation.
The two-day conference, held under the theme “Beyond Survival: Building Smart and Resilient Businesses,” has brought together more than 1,500 policymakers, financiers, development partners and entrepreneurs to discuss ways of improving access to finance, digital skills, markets and supportive policies.
Speaking on behalf of Cabinet Secretary for Cooperatives and MSME Development Wycliffe Oparanya, Principal Secretary for MSME Development Susan Auma Mang’eni announced government initiatives aimed at helping local businesses transition into competitive regional enterprises.
She highlighted the Kenya Jobs and Economic Transformation (KJET) Project, supported by the World Bank, and urged established companies to mentor young entrepreneurs emerging from government programmes such as NYOTA.
“As we move MSMEs from survival to growth, we must rethink how we support them. Formalisation should be a pathway to opportunity, supported by flexible policies, appropriate taxation and incentives that enable businesses to grow,” Mang’eni said.
KEPSA Chief Executive Carole Kariuki said Kenyan entrepreneurs needed to shift their focus from short-term survival to sustainable growth and global competitiveness.
She reiterated KEPSA is supporting businesses through initiatives including the Ajira Digital Programme, the Kenya AI Skilling Alliance and the MSME Financing Gateway, which seek to improve access to finance, digital skills and markets across the country’s 47 counties.
“Our commitment to enterprise development goes beyond isolated interventions. We are building ecosystems where access to finance, market opportunities, skills and enterprise support reinforce one another to help businesses grow,” Kariuki said.
KEPSA Director for SMEs and Startups Mary Ngechu said this year’s conference had expanded its practical offerings through business advisory clinics, strategic masterclasses, digital exhibition catalogues and networking opportunities designed to address challenges facing entrepreneurs.
“MSMEs are not just participants in the economy; they are the economy. When MSMEs grow, our economy grows,” she added.
Equity Bank Commercial Director Kagiso Moloi said lenders also had a role in narrowing Kenya’s estimated KSh3 trillion MSME financing gap.
Moloi said Equity accounted for 37% of MSME lending reported by the Kenya Bankers Association in the first quarter of 2026 and had introduced unsecured working capital loans, local purchase order financing of up to KSh10 million and port duty financing to ease supply chain constraints.
“Finance alone is not enough. MSMEs need access to markets, technology and the right partnerships to grow,” he said.
Victor Oteku, Kenya country representative for Konrad-Adenauer-Stiftung (KAS), called for policies that encourage voluntary formalisation, improve access to affordable financing and support the adoption of emerging technologies such as artificial intelligence.
“MSMEs are creating livelihoods and offering hope to millions of young people and women. We must build enterprises that are resilient enough to withstand uncertainty and contribute to a stronger economy and society,” Oteku said.
The conference will conclude with the third Annual SME Awards, where entrepreneurs and organisations will be recognised for innovation, resilience and contributions to enterprise development across multiple categories.
According to organisers, Kenya has an estimated 7.4 million MSMEs employing about 15 million people and contributing roughly 40% of the country’s gross domestic product. Despite their economic importance, many continue to face challenges including limited access to affordable finance, regulatory hurdles, constrained market access and low levels of formalisation.
The conference aims to identify practical solutions to those barriers through collaboration between government, the private sector and development partners.
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