Nairobi ranked best destination for small and medium enterprises

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Nairobi is the best county for SMEs, beating out Nandi, Kiambu, Nyeri and Kirinyaga. The Kenya Institute for Public Policy Research and Analysis found this (KIPPRA).
The study found that while Nairobi retained its top spot, SMEs in the other 47 counties were less happy with the county’s efforts to build a business-friendly climate. The county scored 45.24 percent in 2019 and 37.04 percent in 2022.

Unlike the other top five counties, whose ratings grew marginally. Nandi’s ratings rose from 21% to 36%, Kiambu’s from 28% to 34%, Nyeri from 26% to 34%, and Kirinyaga from 13% to 34%.

The worst performing counties include Samburu, Garissa, Tharaka Nithi, Lamu, and Marsabit. Except for Garissa, these counties’ performance in providing an enabling environment for SMEs has improved in the last three years.

Garissa dropped from 15 to 46 due to security issues. Meru dropped from 11th to 42nd and Tharaka Nithi from 23rd to 45th.

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Dr Rose Ngugi, KIPPRA Executive Director, noted that the research used the KIPPRA-developed Public Affairs Index and County Business Environment for Micro and Small Enterprises (MSEs) framework to score various indicators in governance and business environment for MSEs.

She was speaking at a dissemination workshop attended by national, county and private sector officials.
The Public Affairs Index, she said, helped these counties by identifying emerging policy concerns as they implemented their development agenda.

According to her, the indicator was built on 10 pillars: fiscal management; economic performance; environmental protection; transparency and accountability; criminal law and order; justice; social welfare; and county Covid-19 readiness.

This framework of 30 indicators was designed to track success in strengthening the business environment for MSE growth and survival in counties.