NYERI, Kenya, April 23 – Thousands of small and medium-sized enterprises (SMEs) are poised for a major breakthrough under a new policy being formulated by the Micro and Small Enterprises Authority (MSEA) to support their growth from incubation to fully-fledged businesses.
Speaking during a public participation forum for five counties held in Nyeri, Daniel Mathenge, Manager in charge of Innovations at the Youth Enterprise Development Fund, said the current framework has failed to support the sector, which employs thousands of Kenyans.
“We discovered that 84 percent of MSEs die before their first anniversary,” Mathenge said.
“The proposed MSEs 2025 Act will introduce a robust framework for funding and marketing their products, with government playing a leading role in managing and supporting the sector.”
Among the key proposals in the draft law is the recognition of MSEs by banks, allowing them to access credit facilities upon presenting their business licenses.
Entrepreneurs at the forum, particularly those in the jua kali sector, cited limited funding and lack of market access as the primary reasons for early business collapse.
“It’s not that we can’t thrive and create jobs,” said Peter Mwangi, an entrepreneur in Nyeri Town.
“But financial support and market access, especially abroad, remain our biggest challenges.”
Nyeri County Commissioner Ronald Muwawi urged youth to embrace entrepreneurship rather than wait for white-collar jobs that are increasingly scarce.
“If more young people enter this sector, we will also see a reduction in crime, which is often linked to unemployment,” he said.
MSEA is conducting similar forums across regional headquarters to entrench the proposed Act, which aims to enhance the survival rate of MSEs and stimulate job creation across the country.
