The government has called for greater private sector investment in micro, small and medium enterprises (MSMEs), saying increased access to affordable financing is critical to unlocking job creation and driving Kenya’s economic growth.
Speaking during a media engagement ahead of the World MSME Day 2026 National Celebrations at a Nairobi hotel on Friday, Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises Development, Hon. Dr. Wycliffe Oparanya, said MSMEs remain the backbone of Kenya’s economy and deserve stronger financial support to expand and create employment.
Oparanya announced that this year’s national celebrations will be held on Saturday, June 27, at the Kenyatta International Convention Centre (KICC), where President William Ruto is expected to preside over an event bringing together more than 3,000 participants from across the enterprise ecosystem.
He noted that this year’s global theme, “Empowering MSMEs through Innovation and Sustainable Industrial Development,” with a special focus on “Human Centered Entrepreneurship in an AI Driven Future,” underscores the need to ensure entrepreneurs and young people remain at the heart of technological transformation.
According to the Cabinet Secretary, Kenya has about 7.4 million MSMEs employing approximately 15 million people, contributing around 34 percent of the country’s Gross Domestic Product and accounting for nearly 91 percent of all new jobs created annually.
He said the sector holds the key to addressing youth unemployment, with nearly one million young Kenyans entering the labour market every year.
“Supporting MSMEs is not welfare. It is the most direct investment we can make in jobs and economic stability,” Oparanya said.
The CS highlighted several government initiatives aimed at strengthening the sector under the Bottom Up Economic Transformation Agenda. These include the Hustler Fund, the Sh29 billion NYOTA programme implemented in partnership with the World Bank, the Kenya Jobs and Economic Transformation Project, the Credit Guarantee Scheme and the establishment of the Kenya Credit Guarantee Company.
He added that other initiatives such as the Women Enterprise Fund, Youth Enterprise Development Fund, Uwezo Fund, Kenya Industrial Estates, Kenya Development Corporation and the Access to Government Procurement Opportunities (AGPO) programme continue to expand opportunities for entrepreneurs across all 47 counties.
Oparanya also commended the Central Bank of Kenya for lowering its benchmark lending rate through successive reductions, saying the move has helped revive private sector credit growth and reduce the cost of borrowing.
Despite the progress, he acknowledged that access to finance remains the biggest challenge facing MSMEs, noting that the sector’s financing gap runs into trillions of shillings.
He said this year’s celebrations will focus on finding practical solutions to unlock private sector financing by bringing together banks, development partners, multilateral lenders, technology innovators and the International Labour Organization to explore innovative financing mechanisms and risk sharing instruments.
The Cabinet Secretary urged the media to highlight the importance of the MSME sector, accurately report its achievements and challenges, and participate in the national celebrations at KICC.
“The future of Kenya’s economy will be built by its small businesses, by the mama mboga, the boda boda rider, the artisan and the young innovator. Let us give them the financing, the markets and the confidence they need to grow,” he said.
