Gov’t rolls out financing lifelines for youth-led MSMES in Busia

The government has stepped up efforts to support youth-led micro, small and medium enterprises (MSMEs) in Busia County, rolling out financing and enterprise support programmes aimed at expanding access to capital and accelerating grassroots economic growth.

Speaking at the Teso North Youth Conference held at Chemasiri Technical and Vocational College, Cooperatives and MSMEs Development Cabinet Secretary Wycliffe Oparanya said targeted financing initiatives are central to the government’s bottom-up development strategy.

Oparanya said young entrepreneurs continue to face structural barriers such as limited access to affordable credit, weak market linkages and low capacity, challenges the government is addressing through dedicated MSME programmes.

“Our focus is to unlock youth potential by expanding access to affordable capital, skills and markets. Through targeted financing programmes, we want youth-led enterprises to grow, formalise and create jobs,” he said.

Among the key interventions highlighted were the Hustler Fund and Uwezo Fund, which provide low-cost financing to youth and small businesses, as well as enterprise development support offered through the Micro and Small Enterprises Authority (MSEA).

The CS also cited the role of Kenya Industrial Estates in providing industrial incubation and affordable manufacturing space for small businesses.

In addition to financing, Oparanya said skills development remains a critical pillar of the MSME agenda, noting that the Kenya Jobs Economic Transformation Project (KJET) is equipping young people with market-driven skills to improve productivity and competitiveness.

MSMEs Development Principal Secretary Susan Mang’eni said the financing push is timely, given upcoming infrastructure projects expected to stimulate economic activity in the region.

“With the planned Nasewa Special Economic Zone, the extension of the Standard Gauge Railway to Malaba and the construction of a dry port, youth-led MSMEs must be financially prepared to seize opportunities in trade, logistics and manufacturing,” she said.

Teso North MP Oku Kaunya urged the government to ensure financing translates into industrial growth, calling for increased support for manufacturing-based MSMEs and the commercialisation of coffee and cotton as inputs for value chains under the Bottom-Up Economic Transformation Agenda.

The conference brought together youth entrepreneurs, government officials and development stakeholders to explore ways of strengthening access to finance and positioning youth-led MSMEs as key drivers of Busia’s economic transformation.