This study is a desk study that reviews the impact of lean principles in the Small and Medium Enterprises in the construction industry. The study used a systematic approach to review books, thesis, conference material, and journal articles that were written on lean principles. The review process covers construction micro, small and medium companies involved in civil engineering projects, residential and non-residential buildings. The results revealed that lean principles were poorly implemented and that most SMEs had minimal knowledge of lean principles. There was a clear understanding of some lean tools, and in most cases, they were applied on an activity and not for the entire duration of the project. This revealed that most SMEs were using lean tools but were not aware of their usage in their organizations. These findings assist local construction companies to identify opportunities for reducing operating costs. The researcher proposes interventions that the local and central governments should make in order to help the SMEs develop into a competitive segment of the industry. The interventions assist in; growing the SMEs, creating more job opportunities for the citizens, and generating revenue for the treasury.