This study investigate the effect of regulatory and policies on sustainable development of MSMEs in the East African Community (EAC) region. The East African Community (EAC) is a regional intergovernmental organization of the Republics of Burundi, Kenya, Rwanda, Uganda and the United Republic of Tanzania. The aim of the Community is to widen and deepen economic, political, social and cultural integration in order to improve the quality of life of the people of East Africa through increased competitiveness, value added production, enhanced trade and investment. Industrial Development is one of the major areas for cooperation stipulated in the Treaty establishing East Africa Community. The Treaty in Article 79 and Article 80 outline the scope of cooperation and the commitment made by Partner States. The policy put emphasis on Strengthening industrial linkages between large and micro, small and medium enterprises (MSMEs) by facilitating production linkages between MSMEs and the large firms, nationally and regionally, and linking up with global markets and value chains.