Micro, Small and Medium Enterprises (MSMEs) play a major part in promoting growth in Kenya’s economy, and account for most businesses across the country. The 2016 MSME survey noted that MSMEs employed approximately 14.9 million people, with most of the MSME operating in the informal economy.
As the COVID-19 pandemic hit the economy, MSMEs were more impacted compared to large enterprises. While under the pressures of low consumer demand, decreased turnover and rising costs, MSMEs were under risk of closure. The high concentration of most MSMEs in the informal economy limits provision of adequate social protection coverage for workers in that sector. Thus, the adverse economic outcome of the pandemic left millions of workers in MSMEs facing underemployment, job losses and loss of income.