Supporting SMEs through Logistics & Manufacturing

Micro, small and medium enterprises employ over 80% of Kenyans and contribute 33% of the country’s GDP. Yet many of these businesses struggle with high logistics costs, inconsistent supply chains and limited access to markets.

When a small-scale manufacturer in Kisii wants to distribute products to Nairobi, they often pay more for transport than larger firms. Poor road conditions and fragmented distribution networks add to overheads and erode margins. At the same time, big retailers prefer to work with established suppliers, leaving emerging enterprises locked out.

Through my logistics company, we have learned that when SMEs are integrated into efficient supply chains, everyone benefits. By pooling deliveries, coordinating schedules and sharing storage facilities, small producers can achieve economies of scale. Digital platforms also make it easier to match supply with demand and reduce wastage.

Access to affordable finance and mentorship remains essential. Entrepreneurs need help formalising their businesses, understanding quality standards and negotiating contracts. Partnerships between banks, cooperatives and the private sector can expand credit options based on mobile money histories rather than traditional collateral.

What I Learned

Working closely with SMEs over the years has taught me that their success is the economy’s success. When we support small businesses with the right infrastructure, skills and finance, they create jobs, foster innovation and build resilience in our communities.

What We Do Next

We will continue to offer discounted logistics services to women‑ and youth‑owned businesses and provide mentorship on business processes. Our advocacy will focus on policies that simplify business registration, improve road infrastructure and encourage procurement from local SMEs. By linking producers directly with regional supply chains, we can ensure that growth is inclusive.