NAIROBI, Kenya, Oct 18 – Kenya’s Small and Medium Enterprise (SME) sector is projected to recover slowly in the face of an increased tax regime.
Speaking at The Big Baraza Annual Conference, SNDBX International CEO Joram Mwinamo noted that many SMEs are struggling to remain operational as the cost of sustaining business rises.
Mwinamo further explained that most small firms are concerned about their survival amid current economic uncertainties, with many expecting they will need to make significant business pivots to stay afloat.
“Kenyans who experienced revenue growth have to be trained, and are more likely to report increased revenue,” said Mwinamo.
According to the Kenya Bureau of Standards’ 2016 Micro, Small & Medium Enterprises (MSME) survey report, there are approximately 7.4 million MSMEs in Kenya, employing around 15 million people.
Research by Research Plus Africa reveals that the majority of these MSMEs (79%) are informal, with 23% of youth-owned businesses by women and 19% by men having closed. The primary causes of these closures are linked to a lack of training and limited access to finance.
The two-day Big Baraza Annual Conference gathered over 500 entrepreneurs and business owners from across the country. Joram Mwinamo, CEO of SNDBX International, stressed the need to rethink traditional business models and focus on “building up local quality to compete with international brands, and exporting talent, goods, and services beyond Kenyan borders.”
Wandia Gichuru, Founder and CEO of Vivo, delivered the keynote speech, sharing insights from her fashion brand’s expansion into Uganda, Rwanda, and Atlanta, USA.
She emphasized, “It’s not enough to enter new markets; businesses need a clear strategy and a dedicated team to implement it successfully in each market.”
Participating in the panel discussion on “Unlocking Business Success with Technology and Knowledge,” Text Book Centre CEO Sachin Varma shared insights from the company’s 60 years in the Kenyan market.
Varma emphasized the importance of frugality during tough economic times and highlighted the need for businesses to focus on their core operations.
He noted that leveraging technology to gather market intelligence is crucial for making fact-based decisions.
“Data will guide an organization, ensuring that it doesn’t expand too quickly. It also allows resources to be redeployed to areas where they are most needed,” Varma said.
The event was sponsored by AAR, Safaricom Business, Zoho, Chpter, KEPSA, Kingdom Bank, PTG, among others.
