Entrepreneurs in Lower Eastern cite bureaucracy, lack of financial access, and heavy taxation as major hurdles

By Lisa Munini

Small and Medium Enterprise (SME) operators in the Lower Eastern region are raising alarm over what they describe as stifling taxation policies and excessive bureaucracy in business registration processes.

Speaking during a stakeholder forum in Machakos, the entrepreneurs highlighted a lack of collaboration with financial institutions and criticized the reliance on shylocks who, while requiring minimal documentation, charge steep interest rates that burden small businesses.

Susan Markewa, an entrepreneur in the organic and beauty sector, said the government has failed to support grassroots entrepreneurs through their growth stages. She called for mechanisms to track and nurture the entire journey of small business owners to ensure sustainable development.

Lenox Mutie, a trader from Kitui, said excessive taxation is pushing businesses to the brink, forcing many to depend on imports rather than leveraging local resources that could empower SMEs.

The forum, convened to validate the Draft MSME Policy, drew stakeholders from Machakos, Makueni, and Kitui counties. Anthony Njeru, Director of Planning at the State Department for MSME Development, underscored the value of public participation in shaping policy. He acknowledged the credit gap and outlined plans to collaborate with banks to provide affordable financial solutions to SMEs.

“We are also investing in expanding market access, enhancing financial literacy, and promoting technology adoption to help SMEs meet both local and international standards,” Njeru said.

He pointed to limited access to markets and credit as key challenges, which the government aims to address through trade guarantee schemes and affirmative action funds.

Machakos County CECM for Trade, Innovation, and MSMEs, John Kilonzo, welcomed the national government’s collaboration with counties in creating a more enabling business environment. He emphasized the need for knowledge sharing and capacity-building to empower traders and help them access global markets.

The forum is part of ongoing efforts to review and refine national MSME policies in consultation with grassroots stakeholders.