KENYA RAMPS UP MSME SUPPORT AS GOVERNMENT, WORLD BANK BOOST DAIRY VALUE CHAIN.
BY NJOKI KARANJA.
The Kenyan government has renewed its push to strengthen micro, small, and medium enterprises (MSMEs) through the Kenya Jobs Economic Transformation (KJET) Project, a USD 150 million partnership with the World Bank, aimed at enhancing productivity and competitiveness across key value chains. Speaking during a visit to the Mbomberi Farmers Cooperative Society in Kiambu County, Principal Secretary for MSME Development Hon. Susan Auma Mang’eni emphasized that the initiative seeks to empower entrepreneurs—especially farmers—through skilling, business development support, and co-investment in modern machinery.
Mang’eni highlighted that farmers are integral to Kenya’s manufacturing and job creation agenda. She noted that the KJET project, alongside the Nyota Programme for youth, is structured to build strong enterprise clusters that can access larger markets, increase production, and expand value addition. She said the dairy cooperative, which currently processes milk, has the potential to scale into producing yoghurt, milk powder, cream, chocolate, and other high-demand products. With the East African Community’s market exceeding 300 million people and the opportunities available under the African Continental Free Trade Area, the PS stressed that Kenya must increase its daily milk production—potentially doubling current output—to fully exploit its competitive edge.
The PS also expressed concern about high youth unemployment and urged young professionals to explore opportunities within high-growth value chains such as dairy. She added that training at Mbomberi, now in its final day, is only the beginning, with ongoing business development support expected to help enterprises grow into the “missing middle”—mid-sized firms capable of generating significant employment. KJET will benefit clusters nationwide across priority sectors including edible oils, textiles and apparel, leather, rice, coffee, tea, the blue economy, and artisanal mining. Every region will be reached based on its economic strengths, with dairy clusters concentrated in Central Kenya and the Rift Valley, and textile and edible oil clusters in Western and Nyanza regions.
Mang’eni linked the project to the government’s broader manufacturing strategy, including the development of County Aggregation and Industrial Parks and new Special Economic Zones in Busia, Eldoret, Naivasha, and Murang’a–Kirinyaga. She emphasized that stimulating production is essential to sustaining these industrial initiatives, noting that farmers are the custodians of raw materials and key partners in national economic transformation.
Ndumberi Dairy Cooperative Chairman Maina Kamau thanked the government for its support, praising the high-quality consultants leading the training. He said the first cohort of 30 members will cascade the skills learned to the rest of the cooperative, boosting processing capacity and creating jobs. He expressed confidence that the partnership with the government would significantly expand the cooperative’s potential.
Prof. Teresia Kyalo of Karatina University, who is leading the training, commended the farmers for their enthusiasm and commitment. She said the programme is the most impactful she has witnessed in strengthening cooperative enterprise, adding that it will help transform micro and small enterprises into stable SMEs capable of supporting Kenya’s economic growth and absorbing the country’s growing youth workforce. She thanked the government for prioritizing MSME development and said the initiative is steering the country in the right economic direction.
