Component 2: Enhancing MSME Cluster Competitiveness

Component 2: Enhancing MSME Cluster Competitiveness. 

This Component focuses on Business Development Services (BDS) and Investment Support for Micro, Small, and Medium Enterprises (MSMEs). The goal is to enhance productivity, efficiency, and job creation within MSME clusters across the 47 Counties.

Under this component, 1,200 MSME clusters will receive free generalised and specialised training and capacity building to improve operational efficiency

The component is implemented by the Micro and Small Enterprises Authority (MSEA)

The program prioritises specific value chains under the Bottom-Up Economic Transformation Agenda (BETA).These value chains were selected for their strong potential to generate employment and meet market demand. They include:Edible Oils, Building Materials (Construction), Textiles, Tea, Coffee, Dairy, Leather, Blue Economy and Minerals.

Sub-component 2.1: Technical Assistance (TA) on Competitive Cluster Development Initiatives. 

This subcomponent will provide technical assistance to enhance MSEA staff capacity in value chain mapping and cluster development, thereby strengthening formal structures, linkages, and governance. The initial step is a mapping exercise of five priority value chains across the country, providing a detailed analysis of where opportunities and value addition are concentrated. This analysis will guide the identification of constraints and shape future interventions.

Sub-component 2.2: Building Capacity of MSME Clusters

This focuses on Business Development Services (BDS) and Co-Investment Support for Micro, Small, and Medium Enterprises (MSMEs). The goal is to enhance productivity, efficiency, and job creation within MSME clusters across the 47 Counties.

Co-Investment Support

To enhance production capacity, 600 MSME clusters will receive co-investment support to acquire machinery. The investment model follows a co-financing approach:

• The project covers 70% of the machinery cost.
• The MSME clusters contribute 30% of the investment.

Current achievements under this component 

Component 2.2:  Already, Cohort 1 BDS training and mentorship have been concluded.