Kenya and Germany Strengthen Strategic Cooperation to Accelerate MSME Development and Economic Transformation

The Federal Republic of Germany, through the Embassy in Nairobi and GIZ, continues to be a steadfast partner in strengthening Kenya’s MSME sector as a key driver of sustainable development.

Principal Secretary Hon. Susan Mangéni, CBS hosted a delegation from the Federal Republic of Germany led by Yannic Kiewitt, Deputy Head of Division 212 (East Africa), Federal Ministry of Economic Cooperation and Development, to review the progress achieved in 2025 and identify priority areas for collaboration in 2026. Their discussions focused on unlocking greater private-sector development through enhanced exports in priority value chains and accelerating the industrialisation and formalisation of MSMEs so they can effectively participate in regional and global markets.

They also explored ways to strengthen the Centre for Entrepreneurship (C4E) project, which plays a critical role in easing young people’s transition into the labour market by reducing youth unemployment and expanding access to business development services. This would create meaningful employment opportunities and increase incomes for Kenyan youth through the growth of youth-owned MSMEs.

Further, they reviewed progress under the Supporting Access to Finance and Enterprise Recovery (SAFER) project, which aims to address persistent market failures in MSME financing, challenges that worsened following the economic disruptions of COVID-19. SAFER is designed to unlock affordable financing and stimulate job creation, particularly for women- and youth-owned enterprises.

"As a nation, we deeply appreciate the Government of Germany for its continued technical support. We look forward to expanding our collaboration in digitisation, market access, capacity building, and evidence-based policy reforms to ensure MSMEs remain at the centre of Kenya’s economic transformation," she stated