The Ministry of Cooperatives and MSME Development, in partnership with MSEA, GIZ, and other stakeholders, officially launched the MSE Policy Review. This workshop brought together key public and private sector players, including Kenya SBDC, SNDBX, University of Nairobi (UON), Kenya Industrial Estates (KIE), Uwezo Fund, Hustler Fund, KEPSA, and ASSEK, among others. Participants provided policy recommendations and discussed necessary changes to shape the future of the Micro and Small Enterprises (MSE) sector.
PS State Department of MSME Development Susan Mangeni, CEO MSEA Henry Rithaa and GIZ SED Cluster Coordinator Christoph Zipfel at the MSE policy review stakeholder engagement workshop
Chief Guest Address: PS Hon. Susan Mangeni
The Chief Guest, PS, State Department of MSME Development, Hon. Susan Mangeni, launched the MSE Policy Stakeholder Engagement. In her opening remarks, she thanked participants for attending the critical session and emphasized the importance of developing responsive policies that will enhance engagement with MSEs, helping them leverage available opportunities and initiatives. Hon. Mangeni highlighted the sector’s growing importance, underpinned by strong political goodwill, particularly through the creation of a dedicated ministry for MSME development. She underscored the need for collaboration between the public and private sectors to unlock the economic potential of the informal sector, which consists of over 17 million unemployed individuals. She also emphasized the role of key value chains in creating markets and highlighted the youth as a vital resource for economic growth. Hon. Mangeni called for innovative solutions to support young entrepreneurs, including de-risking and financing their ventures.
PS State Department of MSME Development Susan Mangeni speaking during the event
MSEA CEO Mr. Henry Rithaa’s Remarks
In his address, MSEA CEO Mr. Henry Rithaa outlined the government’s progress in developing a blueprint to support MSEs. He stressed that the MSE policy must align with the evolving economic environment to remain relevant. Mr. Rithaa acknowledged the challenges facing the sector, such as limited access to financing, capacity building, and market access. He emphasized the importance of establishing robust structures that enable organic growth, facilitating the transition of enterprises from micro to small, medium, and eventually large enterprises. He expressed gratitude to Hon. Mangeni for her continuous support for the sector and urged for deeper public-private collaboration to unlock opportunities. Additionally, Mr. Rithaa shared that MSEA will facilitate the participation of over 400 MSEs in the EAC MSE Trade Fair in Juba, South Sudan, offering them valuable opportunities for market access and business growth.
MSEA CEO Henry Rithaa making his remarks
GIZ Perspective on MSE Sector Challenges
Speaking at the event, Christoph Zipfel, GIZ SED Cluster Coordinator, shared insights from a Kenya Vision 2030 study, identifying key challenges hindering MSE growth, including limited market access, local competition, and inadequate capital financing. He also referenced a McKinsey & Company study, which highlighted a 90% productivity gap in the Kenyan market. Mr. Zipfel reiterated GIZ’s commitment to working closely with the government to support the sector through capacity building, training, and other initiatives. He noted that the German government is collaborating with Kenya to promote the formalization of MSMEs, helping them transition into structured and sustainable businesses. He concluded by encouraging stakeholders to prioritize practical and actionable policy changes that will ensure sustainable growth and positive impact for the MSE sector.
GIZ SED Cluster Coordinator Christoph Zipfel speaking during the event
This workshop marks an important step in aligning the MSE sector’s policies with Kenya’s evolving economic landscape, fostering collaboration among key players, and unlocking the potential of MSEs to drive inclusive growth and job creation.
