SMEs are an integral part of the Kenyan economy, and SMEs working with a circular economy (CE)can play a crucial role in contributing to sustainable growth and the nation’s sustainable development goals, Vision 2030. However, these SMEs face several challenges. This study aims to contribute to the body of research on CE and SMEs in developing countries, an area that is under-researched. Through the study, the researchers explore and bring to the fore the barriers and enablers experienced by SMEs practising CE in emerging economies. This study further examines whether SMEs can apply organisational learning to overcome and harness the barriers and enablers. This research is a qualitative study of an exploratory nature. Primary data was collected from SMEs across different sectors through semi-structured interviews. The main findings indicate that the SMEs face barriers with resources, collaborations, infrastructure, regulations and policies, culture, awareness, and the internal and external environment. However, these categories were also found to act as enablers in addition to adaptive spaces and knowledge management. The research further establishes that the present conditions in the external environment attached to weak policies and regulations are a barrier to progression and learning in CE. This study invites further research of circular economy in developing countries and practical solutions for a way forward.