This chapter examines entrepreneurship within Kenya’s informal economy, where small, medium, and micro enterprises (SMMEs) drive economic growth, job creation, and poverty alleviation. It conceptualises entrepreneurship as a dynamic process of opportunity identification, innovation, and resource mobilisation, exemplified by Jua Kali artisans’ culturally resonant services. Despite SMMEs’ resilience in absorbing labour amid inconsistent formal sector growth since 1963, challenges like regulatory harassment, limited market access, and resource scarcity persist. Government policies have been made to promote formalisation through regulatory reforms and infrastructure, yet implementation gaps remain. The entrepreneurial process, supported by social networks, navigates these barriers, while performance measurement integrates financial and non-financial metrics. By analysing SMMEs’ socioeconomic contributions and policy frameworks, this chapter presents their transformative potential for entrepreneurship and advocates for robust policy execution to foster a sustainable economic ecosystem.