PRESS RELEASE

FOR IMMEDIATE RELEASE

KNCCI and COG Sign Landmark Strategic Partnership to Drive MSME Growth, Data Digitization, and County-Led Economic Development

NAIROBI, KENYA – August 13, 2026 – The Kenya National Chamber of Commerce and Industry (KNCCI) and the Council of Governors (CoG) have signed a transformative five-year Memorandum of Understanding (2026–2031) to strengthen Micro, Small, and Medium Enterprises (MSMEs), harmonize trade regulations, and accelerate economic development across all 47 counties.

The strategic agreement establishes a unified framework between county leadership and the private sector. Built around seven strategic pillars, the MoU prioritizes MSME capacity building, policy enhancement, county trade promotion, innovation hubs, and operational support for County Aggregation & Industrial Parks (CAIPs).

MSMEs account for approximately 98% of businesses and 86% of jobs in Kenya, while contributing nearly 40% to the national GDP. Despite their economic importance, enterprises continue to face hurdles in regulatory compliance, predictability, and access to growth capital.

The KNCCI-COG partnership seeks to resolve these bottlenecks. KNCCI will lead MSME capability programs, export-readiness training, market scans, and investor mobilization. Concurrently, CoG will coordinate county governments to harmonize local business licensing, supported by frameworks like the County Licensing Uniform Procedures Act, 2024, and simplify fee structures.

Key Quotes from Leadership

Dr. Erick Rutto, President of the Kenya National Chamber of Commerce and Industry (KNCCI), highlighted the urgent need for data-driven policymaking and digitization to support MSMEs:

“To truly unlock the potential of our enterprise sector, Kenya urgently needs a comprehensive National Digitization Strategy focused on acquiring accurate, real-time data on MSMEs. We must clearly track their growth trajectories, exact contributions to GDP, and overall impact on employment creation across all 47 counties. High-quality data is the foundation of effective policy—without it, we cannot design targeted interventions, streamline county licensing, or unlock affordable financing. This partnership with the Council of Governors is a pivotal step toward building structured, digital-first policy environments that nurture MSME growth from the grassroots up.”

 

Delivering remarks on behalf of H.E. Dr. Moses Badilisha (Chairperson, CoG Trade and Cooperatives Committee), Dr. Katra Ali, Director of Health at the Council of Governors, noted:

“Trade development and regulation is a devolved function, placing County Governments at the forefront of creating an enabling environment for businesses to operate and grow. This is particularly important for Micro, Small, and Medium Enterprises, which remain central to employment creation, livelihoods, and local economic development. We look forward to a renewed partnership anchored on regular engagement, practical interventions, and shared accountability to move beyond the MoU signing and deliver tangible results for MSMEs and investors across Kenya.”

Mr. KK Mutai, Chief Executive Officer of KNCCI, underscored operationalization and execution:

“This agreement transitions our collaboration from policy discussion into concrete, measurable action. By combining KNCCI’s enterprise support initiatives with county administrative structures, we are creating transparent market linkages, unlocking investment opportunities in County Industrial Parks, and providing Kenyan businesses with the operational stability needed to expand.”

To ensure accountability and practical implementation, the partnership incorporates:

  • Joint Steering Committee & Technical Working Group: Overseeing execution, closing action points, and aligning annual workplans.
  • Bi-Annual & Quarterly M&E Reviews: Utilizing structured scorecards and performance dashboards to track MSMEs trained, policies reviewed, and investments mobilized across counties.
  • Resource Mobilization & Market Linkages: Direct alignment of sector activities—including market scans, trade fairs, and innovation hubs—with target county investment priority profiles

Meanwhile, on the upcoming Africa Chamber Investment Summit the Council affirmed full support for the event this October, with counties committing to participate in the summit including supporting MSMEs to participate as delegates and exhibitors.

###

Media Contacts:

Kenya National Chamber of Commerce & Industry (KNCCI)

Media & Public Relations Desk

Email: Tel: +254-724684368

Nairobi, Kenya