Uncertainty rocks MSME sector after protests

By , June 27, 2025

Kenya marks International Micro, Small, and Medium Enterprises (MSME) Day today amid uncertainty in a sub-sector that created 720,000 jobs last year – 95 percent of available opportunities – following Wednesday’s protests.

Stakeholders hope to use today’s platform to champion national dialogue on resolving disagreements without infringing on others’ rights.

Susan Mang’eni, principal secretary for MSME Development in the Ministry of Cooperatives, led several institutions in condemning the outcomes of the protests, estimating over Sh3 billion in losses. She suggested establishing a riot risk response mechanism for future political and climate-related emergencies.

“The events of June 25, 2025, remain a dark moment for the MSME sector,” she said, noting that demonstrations in 24 counties led to property destruction and business closures, destabilising livelihoods built over years of sacrifice.

The psychological trauma extends beyond financial losses. “Families dependent on these businesses now face uncertainty. Years of hard work and investment were destroyed in hours,” Mang’eni stated during a media engagement with the Kenya Bankers Association, Kenya Association of Manufacturers, Kenya Private Sector Alliance, and other institutions.

The International Labour Organisation (ILO) is hosting today’s World MSME Day celebrations at the Kenyatta International Convention Centre.

Caroline Njuki, chief technical adviser for ILO’s Prospects Partnership in Kenya, stressed MSMEs’ job market contribution. “Those in the informal sector contribute 85 percent to GDP and create jobs. Therefore, this is where we need expansion,” she said.

Statistics show Kenya loses about Sh3 billion daily during protests, mostly affecting MSMEs with limited financial resilience. Many businesses destroyed during June 2024 Gen Z protests remain closed, deepening unemployment and poverty.

“While the right to protest is constitutional, economic rights are also human rights,” Mang’eni said.

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