Abstract: In Eastern Africa, the current structural reforms, reduced state involvement in the production and delivery of goods and services all have begun to reshape employment patterns. An immediate response has been the creation of alternative sources of livelihood exemplified by an increasing number of small and medium size enterprises in the private and tertiary sector. This paper emphasizes the need for government support and proper regulations that recognize the importance of land ownership and access for local communities. Furthermore, it calls for improving small- and medium- size enterprises access to credit, and an increased institutional and human resources development support. Such improvements cannot be sustained without an efficient legal framework instruments and regulations.