KENYA- Policies brief - Building a more competitive and inclusive economy in Nakuru County

A growing economic hub facing persistent barriers

Nakuru County is one of Kenya’s fastest-growing economic hubs, connecting producers, traders, cooperatives, manufacturers and consumers across the Rift Valley and beyond. Its strategic location, thriving markets and entrepreneurial culture position it as a key driver of regional economic growth. 

Yet many micro, small and medium enterprises (MSMEs), particularly those led by women and youth, continue to face barriers such as limited access to finance, inadequate market infrastructure, complex regulatory processes and weak market linkages. 

To address these challenges, the County Government of Nakuru, with support from the IYBA SEED programme, embarked on a participatory policy development process aimed at creating a more business-friendly, inclusive and resilient local economy.

Two policy frameworks for trade and cooperatives

At the centre of this effort are two policy frameworks: the Nakuru Trade and Market Policy 2026 and the Nakuru Cooperative Policy 2026. Together, these policies provide a roadmap for strengthening trade, supporting cooperative development, expanding access to finance, improving market governance and creating greater opportunities for entrepreneurs across the county.

A participatory process across the county

The policy formulation journey engaged traders, cooperatives, business associations, market leaders, county officials and other private-sector stakeholders. During the validation workshop, 58 MSME stakeholders participated, including 41% women, 55% youth and 3% persons with disabilities. 

This was followed by public participation across all 11 sub-counties and reached more than 340 citizens, giving Nakuru the widest geographical coverage among the three counties supported through the programme.

Expected benefits for MSMEs

The policies are expected to create tangible benefits for MSMEs by improving access to affordable financial services, modernising market infrastructure, strengthening consumer protection, promoting value addition and enhancing market access. They place particular emphasis on supporting women and youth entrepreneurs, recognising their critical role in job creation and economic transformation. Both policies also incorporate provisions that support environmental sustainability, climate resilience and inclusive economic participation.

Stronger dialogue and institutional capacity

Beyond the policies themselves, the process has contributed to stronger public-private dialogue and a more collaborative approach to economic governance. Through programme supported engagements, stakeholders helped develop two policy reforms for Nakuru County while strengthening the capacity of local institutions and business support organisations to participate in advocacy and policy processes. 

The process also strengthened county capacity, with more than 30 trade and cooperative officers, sub-county administrators and ward administrators trained as trainers to support policy engagement and future implementation.

Building advocacy skills

The process also helped strengthen stakeholders’ advocacy capacity. Among respondents surveyed in Nakuru, 72.2% applied the advocacy knowledge they had gained, while the same proportion rated its impact as high or very high.

A foundation for inclusive and sustainable growth

The Nakuru Trade and Market Policy 2026 and Nakuru Cooperative Policy 2026 represent more than policy documents. They reflect a shared commitment by government, the private sector and local communities to create an enabling environment where businesses can grow, jobs can be created and economic opportunities can be accessed more equitably. 

As Nakuru continues its journey towards becoming a leading commercial and industrial hub, these policies provide an important foundation for inclusive and sustainable economic development.