Executive Order No 1 of 2022 on the organization of the Government of the Republic of Kenya established the State Department of Micro, Small and Medium Enterprises (MSME) Development in the Ministry of Cooperatives and Micro, Small and Medium Enterprises (MSME) Development. 

The Executive Order No. 2 of 2023, mandates the State Department to carry out the following functions: 

1. Micro, Small and Medium Enterprises (MSMEs) Policy; 
2. Develop SME Financing Policy to facilitate adequate flow of credit from financial institutions; 
3. Administration of the “Hustler Fund” for the promotion, development and enhancing competitiveness of MSMEs; 
4. Capacity development for Entrepreneurship including access to modern management practices; 
5. Support for technology upgradation and modernization; 
6. Establishment of integrated infrastructural facilities; 
7. Promotion and Development of Micro and Small Enterprises and enhance their competitiveness; 
8. Promote Progressive credit policies and practices targeting MSMEs; 
9. Business Innovation and Incubation; 
10. Administer Preference in Government procurements to products and services of the MSMEs; 
11. Champion subcontracting arrangements between SMEs and Large Enterprises; 
12. Market development for MSME products and services (better access to domestic and export markets); 
13. Support for product development, design intervention, and packaging; 
14. Promotion of establishment of Production clusters; and
15. Promotion and Development of the Cottage Industry.