Biz Lounge: What businesses need to do to survive a tough economy

Last month, Chandarana Foodplus announced that its Nakuru branch at Golden Life Mall will close on March 31, 2025 after four years of operation.

This announcement came just a month after a second Stagematt branch closed its Stagematt Chap Chap store, leaving just one outlet.  

In recent years, Nakuru has witnessed a growing number of business closures across various sectors, including supermarkets, restaurants and entertainment venues. Notable businesses that have closed include D-Mash, Anne's Café, Chicken Baristo and Groundless Club.  

According to Wilson Gitu, chairman of the Nakuru Business Association, the tough economic conditions have significantly reduced residents' spending power, forcing many businesses to scale down operations.  

"Most people are still earning the same salaries they did years ago, but the cost of living has risen drastically. This has led to reduced consumer spending, which has a direct impact on businesses," explains Mr Gitu.  

He also notes that access to business finance has become more expensive due to high interest rates, causing many businesses to downsize or close branches. 

In addition, Nakuru's growing population has strained available resources and opportunities, highlighting the need for targeted business support.  

"Nakuru needs to create an enabling environment for businesses by ensuring security, improving infrastructure and improving road access. These factors are critical for smooth business operations," Mr Gitu says.  

He urges the county leadership to prioritise economic growth by attracting local and international investors and promoting business meetings, investment conferences and exhibitions to showcase Nakuru's potential.  

Mr Gitu also points out that many businesses fail because they refuse to adapt to changing market trends.  

"Businesses need to move with the times. The traditional way of doing business is no longer sustainable. Embracing digital marketing, especially social media, is essential to remain competitive," he advises.  

To prevent closures, he recommends that businesses carry out thorough feasibility studies before expanding and invest in automation to improve efficiency as modern customers demand faster service delivery.  

Despite the current wave of closures, Gitu remains optimistic about Nakuru's business landscape. He believes the town remains a strong incubation hub, with new businesses continuing to emerge.  

"Nakuru is still very competitive. With the right support, businesses can thrive here and even as some close down, others are starting up," he says.