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Strategies that helped Nakuru businesses thrive in 2024's harsh economy

Jackson Mwaniki is a director at Fanikisha Microfinance.

Photo credit: Muthoni Wanjiku/Mtaa Wangu
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By  MUTHONI WANJIKU

Correspondent

Mtaa Wangu

The harsh economic climate became a common refrain for businesses in Nakuru this year, with many forced to shut down while others resorted to layoffs. Despite these challenges, the year also saw the opening of new businesses, including the development of business complexes, clubs and supermarkets.

Jackson Mwaniki, a director at Fanikisha Microfinance, notes that this year truly tested the resilience of businesses, highlighting numerous obstacles, including protests led by Gen Zs. He explained that the combination of difficult economic conditions and the protests severely impacted business operations, forcing entrepreneurs to adopt innovative strategies to stay afloat.

"The economic downturn led to reduced business activity, which in turn led to lower revenues and higher operating costs," he says.

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Mr Mwaniki stressed the need for the government to introduce favorable policies, such as equitable tax regimes, to encourage business growth in the county. He also called for improved infrastructure to reduce the cost of doing business and the establishment of initiatives to support start-ups to create more job opportunities for the youth.

Linda Kageha is a director at KNCCI.

Photo credit: Courtesy

Linda Kageha, a director at the Kenya National Chamber of Commerce and Industry (KNCCI), acknowledged the economic difficulties but noted that many businesses managed to persevere even in the face of nationwide protests.

"Several businesses expanded their reach by using social media platforms, thereby increasing their customer base and boosting sales," she observes.

Ms Kageha added that many entrepreneurs stepped outside their comfort zones to market their businesses, which bodes well for growth in the coming year - especially if businesses continue to take advantage of available opportunities. She also highlighted the county government's introduction of the County Enterprise Fund, which offers loans at lower interest rates than most financial institutions.

"The lack of affordable credit has been a significant barrier for many aspiring entrepreneurs, but with this fund, they will now have the opportunity to start and grow their businesses," she explains.

Looking ahead, Kageha advises entrepreneurs to remain adaptable and open to change, urging them to look beyond traditional practices and explore innovative ways to diversify their income streams and stand out in a competitive marketplace.