Home National County Government Moves to Shield MSMEs from Protest-Linked Losses as Daily Economic Impact...

Government Moves to Shield MSMEs from Protest-Linked Losses as Daily Economic Impact Hits Ksh. 3 Billion

Principal Secretary, State Department for MSME Development

The government has unveiled urgent measures to safeguard Micro, Small and Medium Enterprises (MSMEs) from the devastating effects of recent nationwide protests, which have resulted in an estimated Ksh. 3 billion in daily economic losses, most of it borne by vulnerable small businesses.

Speaking during a press briefing, Principal Secretary for MSME Development Susan Mang’eni decried the massive toll the June 25 protests had on the sector. She described the day as “a dark moment” for MSMEs, noting that demonstrations in at least 24 counties led to widespread destruction of property, business closures, and disrupted livelihoods.

“We need a new demonstration format that doesn’t put the backbone of our economy at risk,” said PS Mang’eni. “Economic rights are also human rights. We must find a balance that preserves livelihoods while allowing democratic expression.”

To address the crisis, the government will establish a Rapid Response Assessment Team to document losses incurred by MSMEs and fast-track business registration and license renewals. Authorities will also collaborate with insurance providers to expedite claims processing and promote awareness on business insurance coverage.

Additional strategies include:

  • Establishing a riot risk response mechanism to handle future political or climate-related emergencies.
  • Promoting digital payment systems to reduce the risks of cash-based operations.
  • Accelerating the development of e-commerce platforms and digital marketplaces to ensure business continuity during disruptions.

Mang’eni emphasized that 77% of businesses in Kenya fall under the MSME category, which collectively holds immense potential for job creation, poverty reduction, and productivity growth. She warned, however, that the sector’s future is now at risk due to repeated unrest and low financial resilience.

The PS called for collective responsibility in safeguarding small enterprises, urging development partners, county governments, civil society, and the private sector to support efforts toward a resilient MSME ecosystem, aligned with the Bottom-up Economic Transformation Agenda (BETA).

She also highlighted the success of the Credit Repair Program under the Hustler Fund, which has disbursed over Ksh. 71 billion to more than 25 million Kenyans. Notably, 400,000 entrepreneurs now qualify for bridge loans of up to Ksh. 150,000, reflecting improved financial access for small-scale enterprises.

In conclusion, Mang’eni invited all stakeholders to the World MSME Day celebrations scheduled for Friday, June 27, 2025, at the Kenyatta International Convention Centre (KICC) in Nairobi.

“Let us come together and build back better,” she urged. “Kenya’s future depends on the survival and success of its small enterprises.”

Written By Rodney Mbua

Exit mobile version