The Micro and Small Enterprises (Amendment) Bill, 2025

Background

The Micro and Small Enterprises (Amendment) Bill, 2025 seeks to amend the Micro and Small Enterprises Act, Cap. 499C. The primary objective of the Bill is to require the Micro and Small Enterprises Authority to promote marketing, development, and branding of products and services by local micro and small enterprises to enhance their consumption in the local market.

Key Amendments

Section 31 of Cap. 499C (Functions of the Authority)

The Bill introduces several new functions for the Authority under Section 31, including:

• Advocating, coordinating, harmonizing, implementing, and promoting national branding initiatives and policies to promote local product consumption.
• Advising local micro and small enterprises on technology upgrading, quality and design improvement, standards, and innovation.
• Collaborating with the Kenya Innovation Agency, Information and Communication Technology Authority, and other relevant bodies to boost business standards.
• Providing customized advisory services to local farm enterprises and consumers on the quality of produce and products upon request.

Section 74 of Cap. 499C (Regulations)

The Bill amends Section 74(2) to expand the regulation-making scope of the Cabinet Secretary, allowing for the prescription of:

• Mechanisms for the development, marketing, and branding of products by local enterprises and micro and small enterprises.
• Affirmative action to promote the local consumption of goods and services produced by micro and small enterprises.

New Obligations

• Micro and Small Enterprises Authority: Must establish collaborative mechanisms with tech and innovation bodies to assist MSEs and develop frameworks to provide agricultural quality advice directly to farm enterprises.
• Cabinet Secretary: Required to work with the Authority to draft regulations enabling product branding frameworks and affirmative action rules.