Challenges Of Doing Business In Kenya, Entrepreneurs Share Concerns

• Kenyan businessmen who spoke to TUKO.co.ke cited high taxes imposed by President William Ruto's government as the biggest challenge
• Jewel Films Digital founder George Rotich said access to credit was another problem faced by entrepreneurs in the country
• Eric Muchoki, the founder and CEO of Customized Solutions Insurance Agency, noted insurance uptake was still low

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Kenyan entrepreneurs face numerous obstacles that hinder their success and growth.

These include high taxes, complex regulations, high power costs, inadequate access to credit, bureaucracy, and policy uncertainties. Another challenge is finding qualified workers with the appropriate experience.

Businessmen who spoke to TUKO.co.ke cited high taxes imposed by President William Ruto's government as the biggest challenge.

What are the challenges faced by graphic designers?

George Rotich took the leap and started his creative services business when the world, including Kenya, was hit by the deadly and highly contagious COVID-19 pandemic.

The 30-year-old graphic designer witnessed massive layoffs and the shift towards remote work, which made him see a gap in the creative industry.

Rotich founded Jewel Films Digital, which provides graphic design and photography services.

In an exclusive interview with TUKO.co.ke, he explained that there was stiff competition in the design and photography field with the rise of digital marketing, cheap design software, and low-cost service providers.

"Clients often have high expectations and demand high-quality work, but they may not be willing to pay a fair price for the services. The major problem is the punitive taxes that make running a business difficult. Also, it is difficult to access credits to scale up a business. Lastly, the frequent power outages that sometimes impact a business's efficiency," Rotich expounded.

Nairobi trader decries high taxes

Another businessman, Stephen Okoth, revealed that he started his business in 2017 in Nairobi with an initial capital of KSh 2,000.

His stall is located along Landhies Road near the Machakos Country Bus Station and employs two people.

The 30-year-old trader sells assorted ware, chargers, wristwatches, headphones, sunglasses, Bluetooth devices, and earphones.

He said taxes were eating into his profits, making the business unsustainable.

"High taxation inatuumiza sana. Inafanya bei za vitu zipande na customers hawafiki tena bei...inamaanisha sales itakua chini. Wapunguze tu taxation na itakua sawa (High taxation is very frustrating. It causes prices of goods to rise, and customers no longer afford items, meaning sales are low. They should just reduce taxes, and it will be okay," Okoth told TUKO.co.ke.

Insurance agency owner reveals uptake is low

Eric Muchoki worked as a sales executive at AAR Insurance for over five years and was inspired to start his own company.

Muchoki is the founder and CEO of Customized Solutions Insurance Agency, which offers solutions to individuals and corporations.

According to the Insurance Regulatory Authority, the insurance rate in Kenya stands at 3%, despite being identified in Vision 2030 as critical in the country's transformation.

Muchoki observed that some Kenyans were frustrated by the lengthy claims process, which lowered trust and confidence.

"There is buyer remorse due to lengthy claims process in some cases ultimately lowering trust and confidence in the sector," Muchoki said.

Suss Digital boss cites start-up capital as a problem

Dennis Maina told TUKO.co.ke that his digital marketing company started as a simple hobby which evolved into a thriving business.

The digital entrepreneur established the company in 2021 amidst the challenges posed by the COVID-19 pandemic.

He disclosed the company faced financial problems when it started.

"As a founder, scaling our agency posed challenges, notably in resource allocation and upholding quality standards. To overcome these hurdles, we prioritised talent identification and development, implemented streamlined processes, and leveraged technology for enhanced efficiency. Balancing growth while staying true to our commitment to excellence demanded strategic planning and a dedicated focus on our core values," he said.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke