Promoting entrepreneurship and employment in Kenya

Context

Only 10 per cent of the working population in Kenya are in formal employment relationships and about 80 per cent of the unemployed people are between the ages of 15 and 35. This is primarily a labour demand problem as economic growth in Kenya is too low to create enough jobs for young people, who are entering the labour market. Tackling unemployment thus requires putting in place measures for better economic growth. One measure is supporting micro-, small and medium sized enterprises (MSMEs).

Currently, most MSMEs in Kenya are informal with limited access to finance and markets. There is no conducive regulatory environment and in many cases entrepreneurs lack the necessary business development skills. As a result, productivity is low and MSMEs tend to produce lower quality products, which leads to limited growth and exclusion from the formal economy.

Objective

The framework conditions for stable and lasting business development of MSMEs in Kenya have improved.

Approach

To improve the working conditions for MSMEs, the project is active in the following areas:

• Supporting the Ministry of Cooperatives and MSME Development and their agencies with trainings to improve support  and promotion of MSMEs;
• Developing the skills of state agencies as well as private business development service providers in offering training, matching, and coaching services to increase the business skills within MSMEs;
• Enabling MSMEs to achieve quality improvement in their production and support them in making supplier agreements  to ensure participation in national and international supply chains.

A particular focus is given to MSMEs that are owned by youth and women.

Last Update: February 2025