Nairobi: The government, through the State Department for Micro, Small, and Medium Enterprises (MSME) Development, has launched a public participation and stakeholder engagement forum aimed at validating the draft MSME Policy and MSE Act 2025. The initiative focuses on improving access to finance, easing regulatory burdens, expanding market access, and upgrading infrastructure to foster an inclusive and dynamic MSME ecosystem.
According to Kenya News Agency, Principal Secretary for the State Department for MSMEs, Susan Mang'eni, emphasized that the exercise will provide a platform for refining the policy and proposing amendments to the Act. Mang'eni highlighted that the policy aims to strengthen the institutional and regulatory framework, create an enabling environment, promote capacity building and innovation, enhance market linkages, and foster equity and inclusivity.
To achieve these policy goals, Mang'eni noted that a comprehensive legal framework will be necessary to address gaps in the current MSE Act 2012 and strengthen the institutional frameworks. She articulated a vision to build a highly productive, diversified, and competitive MSME sector that drives economic transformation and social empowerment.
Mang'eni remarked that with successful implementation, the MSMEs Policy 2025 will serve as a roadmap for realizing this vision. She noted that MSMEs play a pivotal role in the economy, contributing over 90 percent of the total enterprises in Kenya, approximately 30 percent of the national GDP, and employing over 15 million people.
These businesses are not only economic drivers but also lifelines for countless families, serving as a bedrock of innovation, resilience, and entrepreneurship in the nation. Despite their significance, Mang'eni acknowledged that MSMEs face challenges, including access to affordable credit, limited market linkages, and capacity gaps that hinder their competitiveness.
Developed proposed amendments to the MSE Act of 2012 focus on a value chain approach, cluster development, devolved governance structure, and inclusion of medium enterprises to address persistent MSME challenges and emerging issues. Mang'eni emphasized that Kenyans' participation will demonstrate a shared commitment to advancing MSMEs in Kenya.
She urged collective effort to ensure the policy reflects the aspirations and needs of all players in the sector. Mang'eni also reaffirmed a commitment to successful policy implementation through a coordinated approach, leveraging the strengths of various stakeholders.