Lawmakers Push Reforms as Committee Reviews MSME and SACCO Law Amendments

 The National Assembly Departmental Committee on Trade, Industry and Co-operatives has begun reviewing proposed amendments to the Micro and Small Enterprises Act and the SACCO Societies Bill, 2026, in a move aimed at strengthening Kenya’s small business and co-operative sectors.

The meeting, held in Mombasa and chaired by Ikolomani MP Hon. Bernard Shinali, brought together senior officials from the Ministry of Co-operatives and MSME Development led by Cabinet Secretary Hon. Wycliffe Oparanya and Principal Secretary Susan Mang’eni.

Addressing the committee, CS Oparanya said the success of Micro, Small and Medium Enterprises (MSMEs) depends on more than government programmes, stressing the need for stronger laws, adequate financing, improved oversight and better institutional coordination.

He noted that the MSME sector remains at the heart of the government’s Bottom-Up Economic Transformation Agenda (BETA), describing it as a critical source of employment and economic empowerment for millions of Kenyans.

“The MSME sector remains central to the Bottom-Up Economic Transformation Agenda because it is the space where millions of Kenyans earn a living, create jobs, support families and contribute to national development,” Oparanya told lawmakers.

The committee was informed that the current Micro and Small Enterprises Act contains several gaps that have slowed the sector’s growth and effectiveness. Among the concerns raised were inadequate financial inclusion measures, weak support for formalisation, limited innovation and digitalisation frameworks, poor institutional coordination, and insufficient monitoring and evaluation mechanisms.

The ministry also identified the need for more targeted support for women, youth and persons with disabilities operating within the MSME sector.

Officials said the proposed amendments are intended to close these gaps, improve regulation and provide stronger protection for entrepreneurs and citizens participating in the MSME ecosystem.

Committee Chairperson Hon. Shinali assured the ministry that Parliament would conduct a thorough review of the proposed changes to ensure the final legislation supports public interests while promoting the growth of small enterprises, which form a significant part of Kenya’s economy.

The committee also received a briefing on ongoing ministry projects and budgetary requirements as the government seeks to expand support for co-operatives and small businesses across the country.