New SME Policy Proposed to Strengthen Nairobi Entrepreneurship
A groundbreaking policy framework aimed at revolutionizing support for Small and Medium Enterprises has been formally proposed to the Nairobi County Assembly, setting the stage for what could be the most significant overhaul of the city’s entrepreneurial ecosystem in a decade. The Nairobi SME Development and Sustainability Policy 2024, championed by the County Executive for Trade and Entrepreneurship, seeks to create a more cohesive and powerful support system for the thousands of small businesses that form the backbone of the city’s economy. The comprehensive policy addresses long-standing challenges including access to affordable credit, burdensome regulation, and limited market access.
The proposed policy outlines several key interventions, including the establishment of a one-stop-shop for all SME licenses and permits, the creation of a County Guarantee Scheme to improve access to bank loans, and the mandatory allocation of 30% of county procurement to qualified local SMEs. It also proposes the formalization of the informal sector through a structured registration and capacity-building program. For too long, our SMEs have operated in a fragmented support environment. This policy provides a holistic framework that addresses their challenges from registration to growth and sustainability. We are building an Nairobi where entrepreneurship is not just a struggle, but a supported journey, said the County Executive, Ms. Wanjiku Mbaru, when she presented the policy to the Assembly’s Committee on Trade.
The business community has reacted with cautious optimism to the proposed policy. The Nairobi Chapter of the Kenya National Chamber of Commerce and Industry (KNCCI) has largely praised the draft, particularly its focus on streamlining the notoriously complex business licensing process. If implemented effectively, the single business permit and the 30% procurement quota could be a game-changer for small businesses in Nairobi. It would reduce the cost and time of compliance and open up a significant, reliable market for their goods and services, stated the KNCCI Nairobi Chairperson, Mr. Richard Ngatia. However, some stakeholders have raised concerns about the county’s capacity to implement such an ambitious framework and have called for a clear, phased implementation plan.
The long-term vision of the policy is to significantly increase the survival and growth rates of Nairobi’s SMEs, which currently face a high failure rate within their first three years. If passed by the County Assembly, its success will hinge on adequate budgeting, inter-departmental coordination, and sustained political goodwill. This is not just another document; it is a commitment to building a resilient and vibrant SME sector. We envision a future where Nairobi is renowned not just for its large corporations, but as a city built by and for successful small business owners, Ms. Mbaru affirmed. The policy is now subject to public participation before the Assembly makes a final decision, a process that will be closely watched by entrepreneurs across the capital.