Micro, small, and medium enterprises (MSMEs) and entrepreneurs have been known to play an instrumental role in the Kenyan economy by creating employment and supporting livelihoods. This has made the sector emerge as a critical part of the economy’s backbone.
Numerous studies indicate that the economic trajectory and growth currently depend on MSMEs. Recognising their importance, the sector is becoming key to being considered for support and ensuring they are empowered for overall economic development.
In Kenya, for example, in Isiolo County, an arid and semi-arid land, the journey of micro, small, and medium enterprises and entrepreneurs has been one of the most resilient and hopeful. The landscape is rapidly changing, thanks to the collaborative efforts of the county government, NGOs, the national government, development partners, the private sector, community members, and other actors.
This collective action has proved the importance of MSMEs and entrepreneurs. If empowerment is equitable, they have the potential to impact the arid and semi-arid regions.
Recognising the pivotal role of MSMEs and entrepreneurs in revitalising the economy and enhancing livelihoods, Isiolo County has taken significant steps toward their empowerment. It has developed and implemented strategic policies and frameworks, creating a favourable environment for these economic drivers.
A key focus has been integrating gender policies, ensuring women-led MSMEs have equal opportunities.
Additionally, the government has initiated training and advisory services, enhancing the capabilities of MSMEs and entrepreneurs to seize numerous opportunities. For example, Hussein GOTU Gamachu Self-Help Group is one of the MSME businesses supported by the Isiolo Small Business Development Centre (Isiolo SBDC).
The group, located 78 kilometres from Isiolo town en route to Merti, is already transforming its local community through agriculture in poultry, fish farming, and other mixed farming initiatives. But despite the formidable challenges of limited resources and expertise, GOTU Gamachu Self-Help Group has stood tall, their determination and innovative ideas shining through.
In a county heavily reliant on pastoralism and grappling with the harsh impacts of climate change and insecurity, they have been unwavering in their mission to create alternative livelihoods.
Through Isiolo SBDC, the group got a donation of a 5,000-litre water tank and a solar system. Using the tank, through Isiolo SBDC, the group got a donation of a 5,000-litre water tank and a solar system. Using the tank, they collect and store water during the rainy season.
They also use the solar system to draw water from nearby sources, cutting the initial excessive costs of walking long distances in search of it. Currently, the team has a farm of maize and beans. They occasionally plant tomatoes, peas, and vegetables for commercial and subsistence purposes. With continued advisory sessions from the Isiolo SBDC team, the group started rearing chickens.
They also constructed a fishpond that carries at least 8,000 fish per season, selling them at Sh500 each every five to six months, meaning Hussein and his colleagues are assured of a steady income and a source of livelihood for their families, a testament to the transformative power of supporting MSMEs and entrepreneurs.
Talking about the transformative power of supporting MSMEs and entrepreneurs, Hussein said: “Our group’s breakthrough came when we connected with the USAid Strategic Partnership Programme at a Youth Innovation Centre event and started attending advisory sessions. They changed our lives.”
This initiative collaborates with SBDC, which has provided budding entrepreneurs with training and advisory services on finance and market linkages.
Already, these centres have become hubs for innovation and capacity building, equipping local business owners with the skills to thrive in a competitive market.
The impact of the Isiolo SBDC on the community is tangible, instilling hope for the future of MSMEs and entrepreneurs in Isiolo County.
To this extent, with funding from the United States Agency for International Development (USAid) through the USAid Strategic Partnership Programme being implemented at Strathmore University, the SBDCs have empowered more than 9,000 MSMEs, 60 percent of whom are women and 40 percent men. It has also facilitated access to more than Sh188,615,414 in funding for MSMEs, enabling significant business growth and development.
The story of Hussein and the GOTU Gamachu Self-Help Group exemplifies the transformative power of targeted support and strategic partnerships in strengthening entrepreneurship and economic development in challenging environments.
As Isiolo County continues to evolve, the efforts of the county government and its partners provide hope for MSMEs and entrepreneurs. These initiatives boost the county economy and inspire new entrepreneurs to rise above challenges, innovate, and contribute meaningfully to their communities.
Looking forward, national and county governments must deliberately engage various partners in supporting entrepreneurs and MSMEs in training and advisory services to ensure their potential is fully exploited as contributors to the country’s sustainable development and economic resilience.
Dr George Njenga Chief of Party, USAid Strategic Partnership Programem and Former Associate Dean at Strathmore University Business School
