Entrepreneurs in Kenya; their biggest challenges and how to avoid

The entrepreneurial spirit is alive and well in Kenya because many people know the benefits of starting their own businesses. However, despite the enthusiasm for entrepreneurship, it has its fair share of challenges that many entrepreneurs in Kenya face as they start and run their businesses. Therefore, if you are thinking of venturing into any kind of business, you ought to lower your expectations and be prepared to face a multitude of obstacles. 

In this article, we will look at the biggest challenges entrepreneurs in Kenya face, and how you can avoid them.

Inadequate business skills and experience 

Many entrepreneurs in Kenya lack the knowledge, skills, and experience to launch and manage a business successfully. This can lead to costly mistakes and a lack of direction, resulting in poor performance and low profits. 

To avoid this challenge, join entrepreneurship training programs or use online resources to gain necessary business skills. 

Limited access to credit 

Another major challenge facing entrepreneurs in Kenya is limited access to credit. Credit is essential for entrepreneurs to purchase the necessary equipment and supplies to start and operate their businesses. Banks and other financial institutions have stringent requirements when it comes to issuing loans to entrepreneurs. This and the prohibitively expensive cost of borrowing money can be a major obstacle for entrepreneurs.

You can avoid this by seeking alternative sources of financing such as crowdfunding and micro-loans, so as not to only depend on one source.

Rapid changes in technology 

As much as they are beneficial, new technologies can disrupt existing markets and create new competition. Also, many entrepreneurs in Kenya may lack the resources or expertise to keep up with the rapid technological changes, which can put them at a disadvantage. Also, the high cost of technology can be a major barrier for entrepreneurs in Kenya.

To remain competitive and relevant, you must keep up with the latest technologies and trends, ensuring that you can use them to your advantage.

High taxes 

Many entrepreneurs in Kenya cannot afford the high taxes imposed by both the national and county governments. This can put a strain on their businesses and can also be a major deterrent for entrepreneurs who might not make a profit or break even.


Starting a business in Kenya can be a challenging endeavour. If you are an entrepreneur in Kenya, you must be prepared to face the above challenges. However, by familiarizing yourself with these challenges and taking the steps to address them, you can increase your chances of success.