Kazakhstan's SME sector grows, but productive industry share remains low

September 19, 2026 at 07:30 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Kazakhstan's small and medium-sized enterprises (SMEs) reached 2.4 million registered entities as of January 1, 2026, with over 2 million active, a 6.1% increase year-on-year. The sector's share of GDP hit 40.9% in 2025, while output reached 104.8 trillion tenge. However, only 118,300 SMEs operate in industry, of which 106,400 are in manufacturing, underscoring a structural imbalance toward trade and services.

Key Facts

As of January 1, 2026, Kazakhstan had approximately 2.4 million registered SME entities, with over 2 million active, a 6.1% increase from a year earlier.
SMEs employed over 4.5 million people and contributed 40.9% of GDP in 2025, with sector output reaching 104.8 trillion tenge.
In early 2026, 118,300 active SMEs operated in industry, including 106,400 in manufacturing, representing a small share of the total SME structure.
Kazakhstan adopted a new investment policy concept through 2030 in December 2025, restructuring Baiterek Holding as the national investment holding.
The new investment model aims to attract an additional $150 billion in investment through Baiterek Holding instruments by 2029.

SME Sector Growth

Kazakhstan's SME sector has expanded steadily, with 2.4 million registered entities as of January 1, 2026, according to the Bureau of National Statistics. Over 2 million of these entities were active, marking a 6.1% increase compared to the previous year. Employment in SMEs exceeded 4.5 million people, and the sector's share of GDP reached 40.9% in 2025. Total SME output amounted to 104.8 trillion tenge, reinforcing the sector's role as a key pillar of the economy.

Structural Imbalance

The majority of SMEs operate in wholesale and retail trade, as well as vehicle repair, with over 806,000 entities in these sectors at the start of 2025. In contrast, only 118,300 active SMEs were in industry, of which 106,400 were in manufacturing, indicating a persistent gap in productive entrepreneurship. President Kassym-Jomart Tokayev highlighted in his 2025 Address that SMEs account for about 40% of GDP and nearly 50% of employment. The low share of manufacturing SMEs limits the formation of new added value, technology transfer, and import substitution.

Investment Policy Shift

Kazakhstan is transitioning from state-funded capital investment to a model prioritizing private and foreign investment, as outlined in the new investment policy concept adopted in December 2025. Baiterek Holding has been restructured as the national investment holding, with a target to attract an additional $150 billion in investment by 2029. Regions are now expected to identify priority sectors and prepare ready-made investment proposals to target specific investors. New mechanisms include a Fast Track system for project launch, an expanded Investment Headquarters under the Government, and a 'prosecutorial filter' to protect investor rights.