President Uhuru Kenyatta has called on Kenyans to create a conducive environment for the SMEs to thrive.
He said local young traders should be given the opportunity to freely conduct their businesses so that they can improve their lives.
The President also urged the National Land Commission (NLC) and the Ministry of Lands to ensure that all land is properly managed.
Speaking during the ground-breaking of Mama Ngina Drive Waterfront, Kenyatta said Kenya's tourism industry had bounced back and was growing.
"This means more jobs for our young people, it means more business for our hospitality industry. This is why we must continue on the path of unity and peace."
The President said security was very important for the tourism sector and "this is why I thank all security agencies for the work they are doing to keep Kenya secure."
Kenyatta asked all Kenyans to join in advising the youth against getting involved in activities that are a security threat to the country.
Flanked by Governor Ali Hassan Joho, opposition leader Raila Odinga alongside other leaders, Uhuru slammed politicians saying the quest for political power must never supersede the needs of the common 'mwananchi'.
"We must come to a place where we put the lives of Kenyans first, where we unite to develop every county in this nation, for the good of every Kenyan," he said on Monday while in Mombasa.
On matters of development, Kenyatta said development is not about where the leader comes from, but about ensuring all Kenyans benefit.
"We want a country where every single citizen is entitled to development regardless of where the leader comes from," he added, slamming Gatundu South MP Moses Kuria who claims Kenyatta has never initiated development programmes in his backyard, Central Kenya.