In a move to bolster the growth and sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Kenya, the Principal Secretary of the State Department of Micro and Small Enterprises Development Susan Mang'eni has outlined critical steps to address pressing challenges faced by the sector, particularly in taxation, financial inclusion, and access to trade financing.
Speaking at the World Chambers Federation forum, the PS emphasized the urgency of updating the MSME data, which has remained stagnant since the 2016 survey. "We have been relying on outdated data for too long, and it’s time to disaggregate this information to create policies that are more relevant to the changing dynamics of our MSMEs," said the Principal Secretary. The new survey aims to gather more accurate and region-specific data, offering a clearer picture of the challenges and opportunities within the MSME sector.
The PS also highlighted the critical role of financial inclusion in the sector's growth. The government has made significant strides in unlocking access to trade financing for MSMEs, enabling them to tap into global markets and expand their reach. "We are particularly focused on bridging the digital divide, ensuring that every Kenyan has access to affordable devices that can facilitate participation in digital trade," said the PS.
A standout initiative gaining momentum is the Hustler Fund, a groundbreaking project that has already made significant strides in improving access to credit for millions of Kenyans. The fund has established credit profiles for 26 million individuals, with women leading the charge in good credit behavior. The Principal Secretary noted that women, in particular, have shown impressive creditworthiness, which is now being used as collateral to access mainstream financial services.
"The Hustler Fund has done something truly transformative—it has created credit profiles for Kenyans, many of whom had never before been considered for formal credit," explained the PS. This move will not only provide individuals with better financial opportunities but will also incentivize responsible borrowing behavior. The government intends to use these profiles to unlock access to affordable credit and further financial services for MSMEs, especially those led by women, in a bid to empower the backbone of the Kenyan economy.
Looking ahead, the government remains committed to creating a more inclusive financial ecosystem that supports MSMEs at every level. The Principal Secretary’s remarks reflect a growing recognition of the need for targeted, data-driven policies that can adapt to the needs of the modern digital economy.
As Kenya continues to champion financial inclusion, the integration of digital tools and services into the MSME sector will be crucial to unlocking new growth opportunities, especially for those traditionally excluded from the formal financial system. With initiatives like the Hustler Fund and an upcoming MSME survey, Kenya is on track to create a more equitable and thriving entrepreneurial landscape.
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