Kenya’s Micro, Small, and Medium Enterprises (MSMEs) sector is set to experience significant growth, driven by the symbiotic relationship with the burgeoning e-commerce industry. This potential was highlighted during a recent forum reviewing the Kenya E-commerce Strategy, launched in December 2023.
The Kenya E-commerce Strategy aims to foster innovation, inclusive participation, and economic growth through digital commerce for all Kenyans, regardless of location, age, gender, or abilities. With over 7.4 million MSMEs contributing approximately 40 percent to the country’s Gross Domestic Product (GDP), the sector’s vibrancy spans various industries, including farming, agribusiness, logistics, trade, and services.
A notable initiative supporting this vision is the e-Biz Kwa Vijana program, launched by BrighterMonday Kenya in May 2023. This groundbreaking e-commerce development initiative, funded by USAID through the e-Trade Alliance, aimed to train 1,000 MSMEs in e-commerce and digital marketing skills. The program concluded in June 2024, surpassing its goals by training over 2,000 beneficiaries and successfully onboarding 632 MSMEs onto online trading platforms.
Victor Waliaula, the proprietor of Jekins Computer Solutions in Nairobi, is one of the program’s success stories. With a background in information and communication technologies, Waliaula saw a 30 percent rise in revenues after implementing the digital strategies learned from the program. “Through the training in digital strategies, I can now develop my own online advertisements and product promotions on social media. Before I joined the e-Biz Kwa Vijana program, I did everything manually, including data entry and sourcing customers through direct selling and personal interactions. Now, I am well-equipped to position my brand, products, and services online, reaching millions of potential customers all over the country,” he said.
The program also covered women entrepreneurs and people with disabilities, reflecting its inclusive approach. Lilian Wairimu, Co-Director of Jegos Enterprises, experienced a 50 percent rise in sales revenues thanks to an enhanced online presence. “I happened to enroll in the e-Biz Kwa Vijana program right in the nick of time. Previously, I would just sit in my shop waiting for walk-in customers and relying on corporate or government tenders, which are very hard to come by due to their many requirements. Now, I have a growing customer base on social media platforms, including Instagram, TikTok, and Facebook,” Wairimu explained.
The program’s success is a testament to the entrepreneurial spirit in Kenya, according to Chris Otundo, CEO of BrighterMonday Kenya. “The success of this program indicates the strong entrepreneurial spirit in young people in Kenya today. We recognize and acknowledge the potential of e-commerce to revolutionize the local entrepreneurial landscape by equipping young people like Victor and Lilian with the necessary knowledge and tools to expand their market opportunities,” Otundo said.
Kenya’s e-commerce sector has seen steady growth in recent years, establishing the country as a leader in digital trade within Africa and globally, with combined revenues projected to reach USD 2,928.00 billion in 2023. Michael Mandu, Acting Secretary for Trade in the State Department for Trade, emphasized the significance of MSMEs in this growth. “A large share of this revenue is attributable to MSMEs and youth-run enterprises, providing jobs and sustainable livelihoods while nurturing digital talents in the country,” Mandu said.
Following the e-Biz Kwa Vijana Program, 95 percent of the MSMEs gained new ideas for their online businesses, with 86 percent achieving their first-ever online sale after the training. The program also reported that 28 percent of participants increased their number of employees to support online business activities, and 95 percent were willing to set aside a monthly e-commerce expense after determining the return on investment.
With an internet penetration rate of over 74 percent, Kenya is well-positioned for e-commerce growth. The growing middle class, which constitutes a significant portion of e-commerce customers, relies on the convenience and speed of online shopping. As market access expands through improved connectivity, entrepreneurs like Waliaula and Wairimu can tap into broader customer bases and new markets, unlocking limitless potential for expansion and growth in both local and global economies.