The SMEs sector has global recognition for its major role in wealth generation, employment creation, and poverty alleviation. Subsequently, there has been increased attention towards the small business sector, as a significant factor for economic development. Similarly, in the Kenyan tourism sector, SMTEs have been in the development stages of tourism for a long time but their effects have not been largely realized due to their sizes and limited life spans. They are viewed however, as determinants of local economic development especially at the grass root. In accordance to Kenya's economic recovery strategy for wealth and employment creation, the sector contributes about 18 percent GDP and plays a critical role in easing foreign exchange constraints, penetration of new markets, and stimulation of growth and economic development.