By Violet Auma ||violetmedia8@gmail.com
The Kenyan government is stepping up efforts to promote entrepreneurship and the growth of small businesses through a series of legislative and policy reforms.
Recognizing the critical role that micro, small, and medium enterprises (MSMEs) play in the economy, the government is developing frameworks aimed at removing barriers to business growth and creating a clear, supportive environment for entrepreneurs.
“One of the most significant initiatives currently underway is the Startup Bill, which is now in the public participation phase,” said Wycliffe Oparanya, Cabinet Secretary for Cooperatives and MSMEs.
Once enacted, the Startup Bill will define the processes for starting and managing businesses in Kenya, while clarifying the government’s role in supporting entrepreneurs with access to finance, regulatory compliance, and business development services.
“We are committed to ensuring that entrepreneurs, especially small business owners, have the resources and legal frameworks needed to succeed,” Oparanya said.
“The Startup Bill will provide a strong foundation for any Kenyan to confidently start and grow a business.”
The government, working closely with the National Assembly and Senate, aims to align the bill with Kenya’s broader economic vision, which positions MSMEs as central to job creation, wealth generation, and sustainable economic growth.
Currently, more than 17 million Kenyans are engaged in the MSME sector.
Oparanya emphasized that creating a business-friendly environment is vital for the country’s economic stability.
At the forefront of these efforts is the Hustler Fund, officially known as the Financial Inclusion Fund.
Since its launch, the fund has disbursed over 60 billion shillings to more than 20 million Kenyans, helping bridge the financial gap for small businesses, especially those traditionally excluded from the formal banking system.
Speaking at a sensitization meeting at Masinde Muliro University in Kakamega, Oparanya described the Hustler Fund as a “game-changer,” citing its accessibility, digital platform, lack of collateral requirements, and affordable interest rate of 8% compared to the 24% charged by many commercial banks.
“Our goal is to ensure that financial resources are available to everyone, especially those left out of the mainstream banking sector,” he said.
Oparanya urged borrowers to repay their loans promptly to maintain the fund’s sustainability. Timely repayments, he noted, will ensure more Kenyans continue to benefit.
“The sustainability of the fund depends on responsible borrowing. We must safeguard it for future entrepreneurs,” he said.
As a reward for responsible borrowing, approximately two million borrowers with strong repayment records are now eligible for larger bridging loans of up to 150,000 shillings, helping them expand their businesses further.
Beyond the Hustler Fund, the government is also strengthening other financial support programs, including the Women Fund, Uwezo Fund, and Youth Fund, to widen access to capital for a broader range of entrepreneurs.
“We encourage Kenyans to take advantage of all available funding opportunities,” Oparanya said. “By providing access to capital, we are supporting job creation and wealth generation.”
In addition to financial initiatives, the government is actively working to reduce bureaucratic hurdles by simplifying business registration processes, offering tax incentives, and improving access to affordable financing.
“We understand the challenges small businesses face and are taking deliberate steps to make it easier for them to thrive,” Oparanya said. “With the right policies in place, Kenya’s entrepreneurship ecosystem will transform significantly.”
As Kenya looks ahead, small businesses remain central to the country’s economic future.
Through legislative reforms, financial support, and a commitment to reducing obstacles, the government is laying a strong foundation for a vibrant, diverse economy driven by enterprising Kenyans.
“The success of small businesses is tied to the success of our nation,” Oparanya concluded.
“We are dedicated to ensuring our entrepreneurs have the support they need to grow, create jobs, and power Kenya’s development.”
