Small and Medium Enterprises (SMEs) in Kiambu County have raised concerns over an increasingly difficult business environment, saying rising operational costs and weak consumer spending are threatening their survival.
The entrepreneurs say the sluggish economy has significantly reduced sales and profits, forcing some businesses to operate at a loss while others are considering shutting down.
Speaking during the launch of preparations for the upcoming Thika Trade and SME Expo at Thika Technical Training Institute, the business owners cited soaring raw material costs, multiple levies and declining purchasing power among consumers as major challenges affecting their operations.
Joseph Mureithi, Director of Sigita Enterprise Limited, a beauty products manufacturing company, said many SMEs are struggling to stay afloat as the cost of raw materials has nearly tripled compared to previous years.
“Raw materials prices have tripled. We are operating on extremely thin margins and, in some cases, at zero profit. Production costs have risen significantly, but many entrepreneurs are reluctant to increase prices because customers are already struggling financially. If you raise prices too much, you risk losing your market,” said Mureithi.
He noted that reduced household incomes have weakened consumer spending, forcing businesses to absorb higher costs in order to retain customers and remain competitive.
Mureithi called on the government to implement policies that support SMEs, noting that the sector remains a key pillar of the Bottom-Up Economic Transformation Agenda and a major source of employment.
Kiambu County Director of Trade Patricia Wambugu acknowledged the challenges facing businesses and said the county government is working to create a more favourable environment for growth.
“We are reviewing some of the levies affecting businesses with the aim of easing the burden on entrepreneurs and enabling them to expand their operations,” she said.
Wambugu added that the planned elevation of Thika to city status is expected to unlock new economic opportunities and attract more investment into the region.
The Thika Trade and SME Expo, scheduled for later this month, will bring together entrepreneurs, investors and industry players to network and explore new business opportunities.
TJ Premiers Director and business event organiser Josphat Nyongesa said the expo aims to empower SMEs through training, marketing and business exposure.
“Trade expos help entrepreneurs showcase their products, connect with customers and learn strategies that can help them remain competitive despite prevailing economic challenges,” he said.
Nyongesa urged SMEs to embrace innovation and digital marketing to increase visibility and remain resilient in a challenging business environment.
By Muoki Charles
