The Small and Medium Enterprise (SME) sector plays a central role in Kenya’s economic development and is a key driver under the economic pillar of national development. SMEs contribute significantly to several priority sectors, including trade, manufacturing, agriculture and livestock, tourism, and financial services. In addition, they support the finance and production sectors, which have been identified as priority areas in the Fourth Medium-Term Plan (MTP IV) 2023–2027 and are aligned with the Bottom-Up Economic Transformation Agenda (BETA).

Cutting across all sectors of the economy, SMEs make up approximately 90% of private sector enterprises in Kenya. This widespread presence makes them crucial enablers of inclusive development, particularly under the devolved system of governance. However, despite the aim of devolution to foster equitable socio-economic development, disparities in regional development persist. Progress remains heavily concentrated in a few urban counties. According to the Gross County Product Report (2019), just ten counties account for 54% of Kenya’s national GDP, with Nairobi alone contributing 22%.

While SMEs contribute significantly to the country’s economic growth, they continue to face systemic challenges, with inadequate access to the resources needed to pursue innovative solutions being a key concern. These limitations hinder their capacity to scale and contribute even more meaningfully to national development. This is where targeted initiatives, such as the SME Innovation Awards, play a crucial role.

According to data from the Kenya National Bureau of Statistics (KNBS), SMEs contribute 33.8% of Kenya’s GDP and employ more than 14.4 million Kenyans. Their potential to transform the economy is therefore substantial. When compared with innovation leaders such as Switzerland, which is ranked first globally in innovation due to its strong institutional frameworks and collaboration between academia and industry, Kenya’s SME sector demonstrates clear room for growth. Switzerland’s performance in innovation inputs, including infrastructure, knowledge systems, and governance, provides a valuable benchmark for Kenya’s efforts.

Unfortunately, Kenyan SMEs continue to face numerous constraints, particularly in terms of innovation. Two significant challenges stand out. First is market access. Many innovators in the national ecosystem struggle to expand beyond their initial markets, which limits the commercial viability and scalability of their ideas. Second is funding. Access to financial resources remains a significant barrier to the growth and sustainability of innovations. Capital is required to support early-stage businesses, commercialisation efforts, infrastructure development, human capital, and innovation-friendly policy environments.

The SME Innovation Awards seek to address these issues directly. By providing a supportive environment and building financial linkages supported by ecosystem players, the initiative aims to unlock resources for promising innovations, celebrate and recognize SMEs' relentless efforts in scaling their businesses and inventing new products as well as services. This year’s KEPSA SME Innovation Award was centred around the theme Driving Growth through Innovation: Advancing Market Access and Expansion.

Held on 27th June 2025 as part of the KEPSA Annual SME Conference, Awards and Exhibition, the Awards ceremony saw 18 businesses celebrated and recognized for driving growth through innovation.

Here's a closer look at the outstanding winners and why they caught the eye of the judges:

In the Cross Border Innovation Award, Alisam Product stood out for its data-driven approach to unlocking regional markets using AI and digital analytics. First runners-up Lawy Afrik Foundation impressed with a platform connecting African artisans to global buyers, while second runners-up Wingi simplified B2B procurement across African borders with their intuitive supply chain solution.

For the Rising Female Star in Digital Trade, Mary Muthoni of Muskat Grocery wowed with her creative use of TikTok and WhatsApp to sell fresh produce and educate consumers. Mary Wanjiru of Maryam Furniture Ke came in second with her tech-savvy custom furniture business, while Jacqueline Wathoya of Kay’s Wellness Centre secured third place by integrating digital platforms and telemedicine for holistic wellness care.

The Logistics and Distribution Innovation Award went to Ecomobilus Technologies, creators of the E-Mkoko—an eco-friendly, solar-powered cargo cart revolutionizing last-mile delivery. Fastline Express took first runners-up for their robust multi-modal freight services, while Beba Beggie placed third for offering smart, short-term storage solutions tailored for e-commerce fulfilment.

In the Tech Start-Up Market Intelligence Innovation Award, Residence Technologies earned top honours for developing a smart addressing system that reduces delivery failures and cuts costs. Ngeli Foods came second with a traceability solution in the honey value chain using QR codes, and Ohospital claimed third place for bringing digital healthcare access to rural populations.

Taking home the Best Overall Market Expansion Innovation Award was Lakegen Enterprises, a green energy pioneer offering sustainable alternatives to traditional cooking fuels. Deed Technologies took second place for making computing devices more affordable through remanufacturing, and Patanisha placed third with a digital platform that links job seekers, clients, and service providers.

In the Rising Male Star in Digital Trade category, Innosync led the way with an innovative electronic voting system using secure SMS and ID verification. Stock Plug followed as first runners-up for creating a WhatsApp-based livestock marketplace, while Mama Pesa took third for connecting job seekers and service providers through a digital interface.

The spotlight also shone brightly on enablers playing a vital role in supporting SME growth.

In the Market Access Inclusivity and Sustainability Award, Namib Technologies emerged top for making digital literacy and coding skills accessible across schools and communities. Global Compact Network Kenya came second for helping SMEs align with global standards for responsible business, while Bidvest Dream PLG Youth Group took third for advancing social services and sustainable development.

The Digital Innovation Enabler Award was awarded to Start Up Lions, whose work in Turkana County is equipping youth with digital skills and entrepreneurial training. Riziki Source came in second for supporting businesses run by persons with disabilities, and Business Fierce placed third for helping over 100 MSMEs grow through advanced digital strategies and platforms.

Lastly, the Overall Market Access Enabler Award recognized Kenya Development Corporation (KDC) for its catalytic role in providing long-term financing and business support to SMEs. ASA International Kenya followed as first runners-up for empowering women entrepreneurs through microfinance, and Ronalds LLP rounded off the top three for offering SMEs compliance-focused advisory services that enhance access to funding and partnerships.

These winners represent the heartbeat of Kenya’s entrepreneurial spirit—bold, solution-driven, and future-focused. KEPSA congratulates each awardee and looks forward to supporting them further as they transition from recognition to real growth in the post-award boot camp.