Photos by Kiptarus 

The Government of Kenya hosted the 25th EAC MSMEs Trade Fair Kenya Day Ministerial Roundtable on Monday at Uhuru Gardens Plenary Arena, marking a pivotal moment in East Africa's commitment to transforming micro, small, and medium enterprises into engines of regional economic growth.

A Moment of National Mourning

The event opened with a solemn tribute to the late former Prime Minister Raila Odinga, with Master of Ceremonies PS for State Department for MSMEs Development Hon. Susan Auma Mang'eni Susan leading attendees in a minute of silence.

Following the tribute, attendees participated in a traditional Kenyan dance performance, setting a tone of unity with the MC's philosophy: "if we can sing together, if we can dance together, we can buy each other's product."

The "Utahama Lini" Challenge: Time to Graduate

Caroline Karugu, Principal Secretary for East African Community Affairs, delivered pointed remarks challenging MSMEs to evolve beyond perpetual dependence on support programs.

The "Utahama Lini" reference (a Kenyan advertisement about a 40 year old man still living with his mother) served as a metaphor for the need for MSMEs to mature and scale up rather than remain stuck in the same category.

Karugu made a compelling investment case for the continent:

In a candid moment, Karugu also highlighted gender dynamics in government leadership:

Moving Beyond Conversation to Transformation

Regina Ombam, Principal Secretary for Trade, delivered one of the event's most direct messages: the time for talking is over.

She emphasized the urgency of addressing Africa's youth bulge:

Her remarks echoed broader frustrations across African finance and policy circles about the gap between rhetoric and action.

The Numbers That Matter

Hon. Beatrice, Cabinet Secretary for EAC Affairs, Cooperatives and MSMEs Development, provided context on why MSMEs deserve this level of attention:

For Kenya specifically:

The trade fair itself demonstrates the sector's scale and ambition:

The Persistent Barriers

Despite MSMEs' massive economic contribution, systemic challenges remain:

The Cabinet Secretary outlined four critical priorities for government action: access to market, digital transformation, clean economic transformation (climate adaptation), and financing.

She also highlighted a new engagement mechanism:

Youth: Africa's Greatest Asset and Challenge

Multiple speakers emphasized that Africa's growing youth population makes MSME development not just important but existential:

Global Crisis Demands Local Solutions

Dr. Pamela Coke Hamilton, Executive Director of the International Trade Centre (ITC), connected Kenya's MSME challenges to global disruptions.

She opened with condolences and cultural connection:

Coke Hamilton referenced the inaugural Global SME Ministerial meeting held three months prior in Southampton, explaining why ITC felt compelled to act:

The stakes, she emphasized, are immediate:

Policy Framework: From Paper to Practice

The event referenced multiple policy frameworks meant to support MSMEs:

Additional frameworks include the EAC Industrialization Policy 2012 to 2032, EAC Vision 2050, and African Union Agenda 2063.

The Cabinet Secretary highlighted the African Continental Free Trade Area as a game changer:

Kenya as ITC's Regional Hub

A significant announcement came regarding Kenya's new role:

This partnership positions Kenya at the center of regional MSME development efforts and signals confidence in the country's leadership on trade and enterprise development.

From Roundtable to Summit: Actionable Commitments

The ministerial roundtable wasn't designed as a talking shop but as a mechanism to produce concrete recommendations:

The deliverable is clear:

Recognition and Gratitude

The Cabinet Secretary recognized the true protagonists of the trade fair:

She also acknowledged the organizing team led by Susan Mangeni and the EAC Secretariat under Secretary General Mitrakiu.

Twenty Five Years of Integration: Lessons and Next Steps

The event marks a quarter century since the first EAC MSME trade fair in Arusha, Tanzania in 1999. Kenya has hosted seven times, including the current event.

The Cabinet Secretary concluded with both celebration and challenge:

What's at Stake

The convergence of 3,000+ exhibitors, ministerial level participation from across East Africa, and international partners signals that this isn't business as usual. With 90% of jobs depending on MSME success, a youth population growing younger by the day, and global economic headwinds threatening trade preferences and development assistance, East Africa's leaders are making clear that MSMEs must scale, governments must act, and the time for transformation is now.

The "Utahama Lini" era where MSMEs remain stuck in the same category year after year must end. The question is whether policy commitments will finally translate into the financing, market access, and enabling environment that Africa's entrepreneurs desperately need.

Panel Highlights: Access to Standards, Credit, and Cross‑Border Readiness

Harmonizing Standards and Ending Double Testing

A Ugandan MSME producing herbal wine raised a practical barrier: products approved at home face re‑testing on entry into Kenya. EAC officials acknowledged this as a live issue and said mutual recognition is being advanced so conformity assessments done in one partner state are accepted across the region. The goal is to standardize priority product categories and simplify conformity assessment so MSMEs avoid duplicate costs and delays.

Officials noted that more than five hundred products are already harmonized at one‑stop border posts, and additional lines, potentially including herbal wines, will be considered as standards evolve.

Implementation Gaps and New Entrants

Questions from the floor flagged uneven implementation after treaties are ratified. New partner states need time to build infrastructure and pass domestic laws, and sometimes national institutions lag even when policies exist.

Panelists outlined the pathway from signature to impact:

• Ratification through country‑specific processes such as parliamentary approval and treaty deposit.

• Domestication at two levels: administrative changes that do not require law reform, and legal amendments to align national law with regional commitments.

• Activation of national implementation committees and investment focal points to troubleshoot bottlenecks, align procedures, and train both officials and private sector actors on what has been agreed.

Financial Literacy First, Then Finance

PS for Trade stressed that access to money without capability can harm MSMEs. Financial literacy and discipline should be treated as precursors to credit. Training must cover loan types, repayment structures, and when to use alternative data such as credit scores instead of traditional collateral.

Lazy Banking, Crowded Out Liquidity, and the Role of Government

PS for East African Community Affairs critiqued a risk‑free preference by banks for government paper, describing a “lazy banking” phenomenon that crowds out MSMEs. When treasuries borrow heavily, banks favor sovereign securities over lending to small firms, extending application processes and tightening requirements. The call to action was twofold: reduce public sector crowding‑out and design honest conversations between governments, DFIs, and banks to rebalance liquidity toward enterprise lending.

What Banks Can Do Differently

ABSA responded that lending to MSMEs is higher than ever, but bravery depends on structured partnerships with governments and DFIs. Examples included:

• An unsecured multibillion women’s fund with rapid turnaround supported by guarantee partners.

• Blended approaches that pair capital with access to markets, networks, mentorship, and venture funding.

• Responsible lending with restructuring and remedial training when borrowers face shocks, rather than default‑only approaches.

• Clear borrower education so MSMEs match loan products to use cases and costs.

Cross‑Border Efficiency for the Small Trader

The EAC showcased practical trade‑facilitating tools already in place:

• One‑Stop Border Posts offering integrated clearances.

• The Simplified Trade Regime, including a simplified certificate of origin issued at borders for low‑value consignments to speed movement of goods.

These measures reduced days spent at borders for small consignments. The open question is how to scale these gains from micro consignments to high‑value shipments and larger firms.

Public Programs and Credit Guarantees

It was cited government funds and guarantees that expand eligibility for borrowers who are not yet bankable by commercial standards. Early results point to thousands of direct beneficiaries and wider employment spillovers. Credit guarantees and concessional lines can help banks extend tenor and reduce collateral burdens while maintaining prudence.

Information Gaps Blocking Digital and Market Access

It was urged a shift from high‑level ambitions to MSME‑ready guidance:

• Practical digital readiness basics such as reliable internet, energy, and simple onboarding.

• Wider use of online financing and alternative scoring to reduce collateral dependence.

• Step‑by‑step education on market entry requirements for destinations such as the EU so firms can comply before shipping.

• Streamlined business registration paired with proactive outreach so MSMEs know how to use new portals and procedures.

Takeaway

The panel converged on three pillars:

• Make standards and procedures truly portable across borders through mutual recognition, fewer duplications, and active national implementation.

• Pair finance with know‑how by institutionalizing financial literacy, product‑fit guidance, and after‑care when shocks hit borrowers.

• Scale proven cross‑border tools and guarantee schemes while easing public‑sector crowding‑out so more bank liquidity reaches productive MSMEs.