While political tensions, economic instability and global uncertainties persist to shape Kenya’s narrative in 2025, the corporate world continues to be a vibrant and powerful presence marked by resilience, entrepreneurial spirit and an expanding wave of youth-owned enterprises.
At The Shocked Report, we’re shifting our spotlight this week to explore business as our present topic, unpacking what it means to start, run and grow a business in today’s Kenya and why it matters more than ever.
A Complex Economic Environment
The Kenyan economy has witnessed pressure and promise in 2025. The Kenya National Bureau of Statistics (KNBS) has shown a decreased GDP growth in the first quarter, triggered by drought, global inflation, and a drop in foreign investment. The cost of living also remains elevated with an increase in fuel prices, electricity tariffs, and basic commodities exponentially.
But despite all these challenges, SMEs remain monarchs, employing over 80% of the working population in Kenya. From virtual hubs in Nairobi to agro innovation centers in Eldoret, the hustle persists and adapting.
Youth Leading the Way
One of the most exciting trends is the expansion of youth entrepreneurship. With the shrinking job market and government neglect, young Kenyans are resorting more and more to self-employment and internet-based ventures. From fashion selling on Instagram to offering technical services on Fiverr and Upwork, young people are redefining what it means to “go to work.”
Initiatives like the Ajira Digital Program, Hustler Fund, and standalone innovation hubs have unlocked opportunities for thousands. However, access to capital, digital tools, and mentorship remains uneven particularly outside urban centers.
Digital Transformation Is Key
One of the most significant trends that are impacting Kenya’s business landscape is digitization. Mobile banking, e-commerce, and social media marketing are now part of even small businesses. Platforms like M-Pesa, TikTok, WhatsApp Business, and Jumia are enabling local businesses to reach customers quicker and at reduced costs.
Even traditional businesses like matatus and small duka owners now make transactions daily using QR codes, Paybill numbers and mobile wallets.
However, the digital divide is still an impediment. In driving the nation forward, it is vital that all regions not just Nairobi are equally endowed with access to digital networks to trigger growth inclusively.
The Informal Sector: An Untapped Giant
Kenya’s informal economy is responsible for the creation of over 33% of the GDP but is yet under-supported in policy. The majority of roadside vendors, boda boda riders, and jua kali technicians earn their livelihoods without any formal registration, credit opportunities, or medical coverage. If targeted and formalized in an appropriate manner, this sector can be the key to long-term economic empowerment.
Micro-financing opportunities, reforms in taxation, and training programs would help this sector transition from survival to sustainability.
Challenges Facing Entrepreneurs in 2025
Among the pressing issues that businesses are facing this year are:
Government cuts resulting in higher tax burden
High cost of imports as a result of volatile exchange rates
Unrest in certain counties, impacting supply chains
Delayed payment by government to youth and women funds
Limited access to international markets due to restrictive export controls
In order to thrive in this setting, businesses need to be agile, technology,savvy and socially embedded.
A New Generation of Kenyan Brands
Despite the obstacles, Kenyan entrepreneurs are building successful brands in 2025:
Nairoberry Clothing – A street fashion company with a twist of social observation.
TwigaTech – A mobile app connecting farmers to buyers without middlemen.
MamaToto Essentials – A female-owned wellness brand that is popular on social media.
Many more like this setup are spread accros the nation in almost all counties.
These businesses aren’t just making profits they’re solving real problems, creating jobs, and increasing Kenya’s global reputation.
The Future Is Local, Digital, and Driven
At The Shocked Report, we believe business is more than about numbers it’s a story of hustle, survival, and smart brains. Kenya’s business people are proof that innovation always pays even in spite of stress. From street vendors to tech innovators, youth entrepreneurs to seasoned investors, the country’s economic powerhouse keeps turning over and it’s driven by people like you.
In the weeks ahead, we will continue to highlight important stories in business, startups, commerce, entrepreneurship, and innovation. Watch out as we follow the ways in which ordinary Kenyans are creating extraordinary futures.
