Kenya’s economy is driven by thousands of small businesses that power our markets, serve our neighbourhoods, and quietly innovate at the heart of our communities. Growing up, I vividly remember seeing a wholesale shop in my village.
For years, this shop functioned with a landline, a calculator and a ledger book. Tracking its daily sales or separating personal and business income was a struggle.
Though the shelves were always stocked, the owner often ran out of cash flow before the month ended, forcing him to borrow informally at high interest rates.
His experience reflects the reality of many small business owners: hard work and determination alone are not always enough to guarantee sustainable growth.
Micro, small, and medium enterprises (MSMEs) collectively employ over 15 million Kenyans and contribute to more than 90 per cent of all new jobs created annually.
Their role in supporting livelihoods, boosting household incomes, and driving grassroots development is vital to Kenya’s socio-economic stability.
From urban to rural areas, in responding to local needs, MSMEs create economic opportunities, promote self-reliance, and fuel innovation.
Despite their vital role in the economy, many MSMEs continue to face systemic and structural challenges that hinder their growth and limit their potential. Key among these is limited access to practical knowledge, business training, and modern tools that can enhance their operations.
In today’s fast-evolving economy, digital connectivity, financial literacy, and an innovative mindset are no longer optional for success; they are fundamental prerequisites for long-term business sustainability.
Across the country, MSMEs are increasingly embracing digital platforms.
Entrepreneurs are using mobile money for transactions, leveraging messaging apps like WhatsApp for marketing, and tapping into social media to reach broader customer bases. The expansion of mobile broadband, including widespread 4G and the gradual rollout of 5G, is steadily transforming how businesses connect with the marketplace. While these digital trends are promising, access to technology alone is not enough to guarantee meaningful progress.
The reality however is that many MSME owners still lack the knowledge and skills needed to fully leverage digital technologies. Basic digital literacy remains a challenge for some, while others struggle with financial management or have limited experience in strategic business planning.
Compounding these is unreliable internet access, limited access to formal credit, and the widespread use of informal business models, all of which continue to hinder the sustainable growth of MSMEs.
Essential skills
This is why deliberate, structured efforts to upskill MSMEs are needed, and needed urgently. Equipping entrepreneurs with essential skills in areas such as digital marketing, innovation, record keeping, customer service, and financial planning has a powerful multiplier effect.
It helps increase operational efficiency, improve revenue generation, reduce costs, and expand access to new markets. Most importantly, it drives job creation, strengthens community resilience, and reinforces the foundation of Kenya’s broader economic growth.
Through targeted initiatives that bring knowledge, innovation, and community engagement closer to business owners, especially in underserved and remote regions, we can unlock meaningful transformation.
Whether it’s training a market trader to maintain digital records, helping a salon owner develop a customer loyalty programme or enabling a boda operator to understand and access business credit, the impact of knowledge-sharing is both immediate and long-lasting.
As a country, we must remain committed to investing in the growth and development of this vital sector. It will require continued collaboration between government agencies, the private sector, and development partners.
Together, we must work to remove barriers, streamline regulatory processes, improve infrastructure, and create a conducive environment where small businesses can thrive and innovate.
Supporting MSMEs is a strategic and forward-looking investment in Kenya’s economic resilience, inclusivity, and competitiveness. Forums that bring entrepreneurs together to share experiences, build networks, and access context-specific solutions are a positive step in the right direction.
But the journey is far from over. We must continue to move forward with purpose, listen to the real needs of small business owners, and provide the tools and knowledge they need to flourish.
At Safaricom Business, we power progress for business by providing products and solutions that connect, protect, enable, and transform businesses to make them ready for the 21st century.
Beyond providing tools, Safaricom Business also meets MSMEs where they are through platforms like Grow with Safaricom Business. This initiative offers financial literacy training, digital onboarding, and exposure to a broader marketplace.
Payment solutions
It is a holistic approach that integrates access, training, and technology, all designed to help businesses scale sustainably and with confidence.
Additionally, M-Pesa for Business supports more than 2.2 million micro, small, medium, and large enterprises through its comprehensive merchant payment solutions.
It enables businesses to transact securely, build credit profiles, and make informed financial decisions. The adoption of these services demonstrates a growing digital shift that is redefining how MSMEs operate and grow in Kenya.
Simply put, MSMEs are not just accessing digital tools; they are using them daily to run their businesses more efficiently, increase customer reach, and improve financial outcomes.
The numbers tell a story of transformation, and we are proud to be part of this journey of empowerment and progress. When MSMEs succeed, Kenya succeeds.
The author is the acting Chief Enterprise Business Officer at Safaricom PLC
