By Safi News Reporter
NAIROBI, June 26, 2026 — The government has called on financial institutions, development partners and private investors to increase financing for Micro, Small and Medium Enterprises (MSMEs), saying access to affordable credit remains the biggest obstacle facing the sector despite ongoing government interventions.
Speaking during a media briefing ahead of the World MSME Day national celebrations in Nairobi on Friday, Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises Development, Dr. Wycliffe Oparanya, said MSMEs are the backbone of Kenya’s economy and will play a critical role in creating jobs for the country’s growing youth population.
The national celebrations will be held on Saturday at the Kenyatta International Convention Centre (KICC), where President William Ruto is expected to preside over the event, bringing together more than 3,000 participants from across the enterprise ecosystem.
Oparanya said Kenya has approximately 7.4 million MSMEs, employing about 15 million people, contributing nearly 34 per cent of the country’s Gross Domestic Product (GDP), and generating more than 90 per cent of new jobs annually.
“These are not just statistics. They represent the livelihoods of millions of Kenyan families and the future of our young people,” he said.
The Cabinet Secretary noted that nearly one million young Kenyans enter the labour market every year, making the growth of small businesses essential in addressing unemployment.
He highlighted several government initiatives aimed at supporting entrepreneurs, including the Hustler Fund, which has expanded financial inclusion, the Sh29 billion National Youth Opportunities Towards Advancement (NYOTA) programme implemented in partnership with the World Bank, and the Kenya Jobs and Economic Transformation Project, which links enterprises to markets and private investment.
Other interventions include the Credit Guarantee Scheme, establishment of the Kenya Credit Guarantee Company, the Women Enterprise Fund, Youth Enterprise Development Fund, Uwezo Fund, Kenya Industrial Estates, Kenya Development Corporation and procurement opportunities reserved for youth, women and persons with disabilities under the Access to Government Procurement Opportunities (AGPO) programme.
Oparanya also welcomed recent monetary policy measures by the Central Bank of Kenya, noting that reductions in the benchmark interest rate had lowered borrowing costs and contributed to renewed growth in private sector lending.
However, he acknowledged that financing remains inadequate, with the funding gap for MSMEs running into trillions of shillings.
“The government has carried much of this responsibility, but the financing gap is too large for government alone to bridge,” he said.
He said this year’s World MSME Day celebrations will focus on unlocking private sector financing by bringing together banks, development partners, multilateral institutions, technology innovators and the International Labour Organization to discuss practical solutions for expanding access to capital.
The 2026 global theme is “Empowering MSMEs through Innovation and Sustainable Industrial Development,” with a special focus on human-centred entrepreneurship in an AI-driven future.
Oparanya urged the media to highlight both the achievements and challenges facing the sector and encouraged journalists to attend the national celebrations.
“The future of Kenya’s economy will be built by its small businesses — the mama mboga, boda boda rider, artisan and young innovator. They need financing, markets and confidence to grow,” he said.