Nairobi's small manufacturing businesses are pivotal to Kenya’s economic growth but face challenges in adopting innovative technologies and upgrading their operations. The study employed a mixed-methods approach combining qualitative interviews and quantitative surveys to gather data from small manufacturers in Nairobi. A significant proportion (45%) of surveyed businesses reported adopting at least one innovative technology, with hardware upgrades being the most common (30%). Technological upgrades have a positive impact on productivity among Nairobi's small manufacturing businesses, although the degree varies by sector and type of upgrade. Policies should incentivize technological adoption through grants or tax breaks, while also fostering an environment that encourages innovation within these enterprises.