Micro, small and medium-sized enterprises (MSMEs) constitute more than 70% of manufacturing firms in Kenya, but because of their generally informal nature, these enterprises lack the benefit of economies of scale and access to technology and financial and human capital. The manufacturing sector is also characterized by weak inter-firm linkages and a low level of innovation, leading to low exports. Production costs are high, inhibiting productivity, suppressing demand for finished products and limiting profits, which hampers the ability of enterprises to attract investment. There is a need to refine and harmonize existing regulatory frameworks so that green economy practices can be mainstreamed. Regulatory innovation to provide for sustainable consumption and production is important for providing direction and bolstering eco-innovative efforts in the sector.
To address some of these issues, the MSMEs involved in SWITCH Africa Green projects in Kenya benefit from technical advice on eco-innovation and aspects of sustainable consumption and production, such as resource efficiency, integrated waste management, energy efficiency and industrial symbiosis, as well as general business advice on management, including financial management.