A new report has revealed that the close to 1.6 million licenced micro, small and medium enterprises (MSMEs) operate in an unregulated environment which is not supportive to the sector\u2019s growth. According to Kenya Private Sector Alliance (Kepsa) head of Policy Research Analysis Victor Ogalo, who spoke during the launch of Kenya\u2019s first MSME pilot policy in Nairobi during the alliance\u2019s gala dinner, research ranked Kenya\u2019s MSMEs policy environment at three out of five, with half of eight policy dimensions below the neutral index of 3\/5. Policy environment \u201cThe study shows that Kenya\u2019s MSME policy environment is largely not supportive to the sector\u2019s development and needs to be reviewed and strengthened towards world benchmarks such as Association of Southeast Asian Nations (ASEAN) mean index of 3.7\/5,\u201d Ogalo said. Speaking on the sidelines of the launch, Ogalo reckons more policy work needs to be undertaken in human capital and entrepreneurial skills development (2.98); frameworks for business development (2.87); market linkages and expansion (2.8); and MSME representation (2.5) which ranked below the neutral index of 3\/5. The new policy index is structured to provide policy guidance in infrastructure, access to inputs, governance and business regulatory environment.