From Policy to Profit: Inside the Push to Transform Kenya’s MSMEs in Uasin Gishu

In a packed hall buzzing with entrepreneurs, policy experts, and development partners, a critical conversation unfolded—one that could shape the future of small businesses across Kenya. At the center of it all was a simple but urgent question: how can policy move beyond paper and start working for the thousands of young entrepreneurs struggling to stay afloat?

The forum, convened with support from the SNV Netherlands Development Organisation under the EU-backed Investing in Young Businesses in Africa (IYBS) initiative, brought together a powerful mix of stakeholders determined to bridge that gap.

At least 60 micro, small, and medium enterprise (MSME) operators—many from the leather and textile sectors—gathered to unpack the implications of Kenya’s MSME Policy 2025 and its regulations. But this was no ordinary policy workshop. It was a rare, direct interface between policymakers and the very entrepreneurs the policies are meant to serve.

“This is about more than just policies—it’s about livelihoods,” said Nduta Ndirangu, the IYBS Project Manager in Kenya. “Our goal is to strengthen the entire ecosystem that supports young businesses, especially those led by women and youth.”

The IYBS program spans five African countries and is being piloted in Uasin Gishu, Kisumu, and Nakuru counties. Its mission is ambitious: to create decent jobs by empowering young entrepreneurs and ensuring the systems around them—from financing to regulation—actually work.

Where Policy Meets Reality

For many in the room, the challenges are all too familiar.

Access to finance remains a stubborn barrier. Despite numerous funds and initiatives, many small businesses still struggle to secure affordable credit. Market access is another hurdle, with entrepreneurs often limited to local customers despite the potential for wider reach.

Then there’s regulation—a maze that many MSMEs find difficult to navigate.

“Some of our entrepreneurs are stuck not because they lack ideas, but because they don’t understand the systems,” said Alton Kogo, regional coordinator at the Micro and Small Enterprises Authority. “That’s why forums like this are so important—they demystify policies and open doors.”

Participants spoke candidly about the frustrations of operating without proper documentation, struggling with compliance requirements, and facing delays in approvals. For manufacturers, especially, issues like standardization and certification can be make-or-break.

Ecosystem Players Step In

To tackle these challenges, a network of ecosystem players is stepping up.

Organizations such as Inkomoko are offering business development services and facilitating access to finance, while the Jua Kali Association is championing grassroots entrepreneurs through training, advocacy, and shared production facilities.

One standout solution discussed was the use of common manufacturing centers—spaces where small-scale producers can access equipment they would otherwise not afford. These hubs are expected to boost productivity, improve quality, and enhance competitiveness.

County governments are also playing a growing role. Officials from Uasin Gishu highlighted trade programs and youth initiatives designed to stimulate enterprise growth at the grassroots level.

A Digital Turning Point

As the world shifts increasingly online, digital platforms have become indispensable for small businesses. Yet, recent changes—such as new advertising charges introduced by global tech companies—have sparked concern among entrepreneurs who rely heavily on social media for marketing.

Ndirangu offered a balanced perspective.

“Yes, there are costs, but there’s also opportunity,” she said. “Digital platforms give MSMEs access to markets far beyond their immediate location. The key is awareness and adaptation.”

With Kenya being one of Africa’s most digitized economies, stakeholders agreed that equipping entrepreneurs with digital skills will be crucial for future growth.

The Power of Policy—If It Works

One of the most applauded initiatives discussed was the decision by some county governments to waive business licensing fees for youth entrepreneurs under programs like the Nyota Program.

The move is more than just financial relief—it’s a gateway to formalization.

“When you remove the cost barrier, more young people are willing to register their businesses,” Kogo explained. “And once they’re formalized, they can access loans, government programs, and bigger markets.”

Formalization, he added, is a key mandate of the Micro and Small Enterprises Authority and a critical step toward expanding Kenya’s tax base and strengthening its economy.

Collaboration Is the Missing Link

If there was one theme that stood out, it was the need for collaboration.

From national government agencies to county officials, private sector players, and development partners, everyone has a role to play. The success of MSME policies, stakeholders agreed, depends not just on formulation but on coordinated implementation.

“This is what public-private partnership looks like in action,” said one participant. “When we come together like this, policy stops being abstract—it becomes practical.”

Looking Ahead

This forum is part of an ongoing series, with similar engagements planned across the country. Organizers say the goal is to reach as many MSMEs as possible, ensuring that no entrepreneur is left behind due to lack of information.

For the entrepreneurs in the room, the impact was immediate. Many left with a clearer understanding of available opportunities, renewed confidence, and—perhaps most importantly—a sense that their voices are being heard.

As Kenya continues to position MSMEs as the backbone of its economy, the challenge now is clear: turn policy into progress, and ensure that every small business has a fair shot at success.

If the energy in Eldoret is anything to go by, that transformation may already be underway.