Kenyan SMEs Set To Outperform
BMI View: Small and medium enterprises (SMEs) face challenges across Sub-Saharan Africa, but those in Kenya are better placed than most to grow and succeed. An improving business environment, a technologically adept population, and established trade links with key export markets will help SME growth.
Small and medium enterprises (SMEs) such as restaurants, commercial farms, and small traders are leading employers in Sub-Saharan Africa (SSA) and their continued success will be crucial in ensuring inclusive growth across the region. In most countries, however, difficult business environments, poor infrastructure, and a crippling shortage of credit hamper the growth of small firms. This is one reason why breakneck GDP growth has done so little to tackle Africa's huge levels of unemployment and underemployment.
BMI highlights Kenya as an outperformer, believing that the country's improving business environment, technologically adept population, and established trade links with key export markets will help boost SME growth. Kenyan firms will still face serious challenges, but they are better placed to succeed than most of their SSA peers.
|Small Firms and Informal Sector Provide Most Employment|
|Kenya - Working-Age Population By Employment, mn|