MSMEs play a pivotal role in Kenya’s economic development. According to a 2016 survey done by Kenya National Bureau of Statistics (KNBS), Kenya had over 7.4 million MSMEs, employing around 14.9 million people across various sectors and contributing about 40percent of the gross domestic product (GDP).
The Fourth Medium Term Plan (MTP IV) of Kenya Vision 2030 (2023–2027) recognizes that transforming MSMEs is essential to increasing GDP growth from 4.8percent in 2022 to 7.2percent by 2027.