To propel its next phase of economic growth, Kenya must prioritize unlocking the potential of its vibrant SME sector through policy stability, improved credit access, and strategic partnerships. Despite economic growth of 4.7 percent in 2024 and easing inflation, SMEs, which account for over 90 percent of jobs, face significant challenges including limited access to affordable credit.

• Private sector credit growth declined to four percent by June 2024 from 13.9 percent the previous year.
• The African Development Bank Group's 2025 Kenya Country Focus Report indicates inflation eased from 7.7 percent in 2022 to 4.5 percent in 2024.
• The country's mobile money and fintech ecosystem is valued at over $2 billion (Ksh 260 billion), though consumer protection in digital lending requires strengthening as FinAccess Household Survey 2024 shows 16.6 percent loan defaults.
• Mercy Mwelu, GM of Business Development at Jubilee Asset Management, and Mercy Kano, Doctoral Fellow at Strathmore Institute of Mathematical Sciences, emphasize that investing in SMEs is sound economics, crucial for broad-based economic progress in Kenya.