Stanley Kosge, representative from MITI. /PHOTO ; SEI
At a recent forum hosted by the Stockholm Environment Institute (SEI) in Nairobi, actors from across Kenya’s bio-based industries highlighted the collaborative role of civil society and philanthropy in creating the ecosystem for innovation, particularly for small and medium-sized enterprises (SMEs).
Their interventions range from funding and technical support to market linkages and capacity building, addressing gaps that often prevent bio-based innovations from scaling.
Building partnerships for innovation
For Winfred Kiarie, a consultant with Business Sweden, the bioeconomy is not just a sector but a lifeline for small-scale farmers whose efforts often fail to yield returns.
“I grew up on a small-scale farm like millions of households in Kenya. We planted maize, beans and potatoes, but the yields never matched the effort,” Kiarie said.
“For most farmers, it isn’t ambition that is lacking; it’s the ecosystem. Support from partners can connect farmers to processing, cooperatives, and markets that make their work sustainable.”
Kiarie now works to build partnerships between Swedish companies and Kenyan enterprises, linking philanthropic support to practical solutions such as bio-based packaging, renewable energy and agri-tech.
She said these partnerships have helped local innovators access technology, mentoring, and market opportunities that would otherwise remain out of reach.
“Philanthropy in this space is not charity, it’s about creating sustainable ecosystems where innovation can thrive,” she said.
“Through pilot projects like biogas digesters on farms, recycling hubs in industrial zones, and smart irrigation systems, we can demonstrate viable models that local communities can adopt.”
Private sector and donor support
Rael Adhiambo, an expert in the sector, shared data showing that Kenya’s bioeconomy already contributes between 30 and 40 per cent of GDP, with agriculture accounting for 22.5 per cent and agro-manufacturing 4.1 per cent.
However, she noted that growth is hampered by limited value addition, weak coordination between research and industry, and low technology adoption.
“Most bio-based innovation remains at the pilot stage,” Adhiambo said.
“To scale up, Kenya needs coordinated financing, reskilling programmes and the inclusion of indigenous knowledge to unlock new revenue streams in areas such as cassava-to-ethanol, black soldier fly feed and seaweed processing.”
She further added that this is where philanthropic initiatives and development partners can make the biggest impact, noting that many have already begun filling some of these gaps.
Through initiatives like the Advancing Bioeconomy Development in Kenya (ABDK) project, funded by the Swedish International Development Cooperation Agency (Sida) and implemented by SEI, local universities and startups have been able to adopt practical bio-based solutions.
These include turning agricultural waste into biofertilisers, biogas and biodegradable packaging.
“Without partners, these innovations would struggle to scale,” Adhiambo said, adding that they provide capacity building, access to technology and mentorship that helps entrepreneurs move from ideas to viable products.
The Kenya Private Sector Alliance (KEPSA) also highlighted how donor-backed initiatives can bridge gaps in financing, skills, and market access for SMEs.
Levi Injendi, KEPSA’s SME Trade and Investment Officer, said many enterprises are not investment-ready despite available funding.
“Access to finance is a complex issue. It’s not that the money isn’t available; many SMEs lack the readiness to absorb it effectively,” Injendi said.
“This is where development partners, foundations and private-sector alliances play a critical role through training, structured market linkages and support in meeting technical and regulatory standards.”
Philanthropic interventions are also helping SMEs navigate the practical challenges of commercialisation.
Programmes that link small producers to local supply chains, provide seed capital for innovation or support pilot testing for bio-based products are increasingly being led through public–private partnerships.
“SMEs need more than just funding; they need guidance on compliance, quality standards and market expectations,” Injendi said.
Government commitment to a bioeconomy hub
Stanley Koske, representing the Ministry of Investments, Trade and Industry (MITI), said the government is building the policy and institutional frameworks necessary for Kenya to position itself as a bioeconomy hub in Africa.
“The government recognises the bioeconomy as a key pillar for industrial transformation, job creation and climate resilience,” Kosge said.
“Through partnerships with agencies like SEI, NACOSTI and KEPSA, we are aligning research, trade and innovation to create new value chains.”
He added that MITI is developing a National Bioeconomy Strategy that focuses on circular value chains, bio-based manufacturing and certification standards to attract both local and international investors.
Beyond policy, the government is supporting research institutions and technical universities to commercialise locally developed bio-based products.
“Our goal is to move Kenya from a resource-based economy to a knowledge-driven bioeconomy,” Kosgei said.
“This includes promoting biogas, bamboo, medicinal plants and waste-to-energy projects that can generate up to two million green jobs by 2032.”
Women and youth are also being targeted by capacity-building initiatives that focus on technical skills, business management and access to green technologies.
Kiarie emphasised that effective partnerships combine financial support with knowledge transfer and local capacity development.
“She noted that Swedish companies bring technology but it’s local institutions and civil society that ensure this technology is adopted, maintained and improved with Kenyan expertise,” she said.
The impact of these initiatives is already evident in rural and urban communities. Smallholder farmers are learning to turn organic waste into biogas for household energy, while youth-led cooperatives are producing high-quality compost and biofertilisers for sale to local markets.
In urban areas, social enterprises are developing biodegradable packaging and exploring circular waste management models.
Philanthropy and government policy are also converging to stimulate market development. By funding trade fairs, market readiness programmes and SME matchmaking platforms, partners are helping small enterprises access local, regional and international markets.
“Non-state actors are not just filling gaps; they are shaping an enabling environment that allows bio-based SMEs to thrive,” Adhiambo added, saying that from funding and mentorship to policy advocacy and market access, their interventions are critical for unlocking the sector’s potential.”
Looking ahead, Kosgei noted that coordinated efforts between government, development partners and private sector actors will be key to transforming Kenya into a bioeconomy hub that leads the region in green industrialisation.
“Bioeconomy should not just be a scientific concept or government strategy,” Kosgei said. “With strategic partnerships and local innovation, it can become a driver of livelihoods, industrial diversification and sustainable growth.”
