Small and Medium Enterprises (SMEs) in Kiambu County have expressed concern over mounting economic pressures that are making it increasingly difficult for businesses to survive, citing escalating operational expenses and declining consumer purchasing power.
The entrepreneurs say the challenging economic climate has led to lower sales volumes and shrinking profits, leaving many businesses struggling to remain operational while others face the possibility of shutting down.
The concerns were raised during a planning meeting for the forthcoming Thika Trade and SME Expo, scheduled to take place from June 25 to 27 at Thika Technical Training Institute. Participants identified high production costs, numerous levies and taxes, and reduced consumer spending as some of the biggest obstacles affecting the sector.
Speaking during the meeting, Joseph Muriithi, Director of Sigita Enterprise Limited, said manufacturers and small businesses are facing a steep increase in the cost of raw materials, making production significantly more expensive than in previous years.
He observed that many households are grappling with financial constraints, resulting in reduced spending and forcing businesses to either absorb additional costs or risk losing customers by increasing prices.
Muriithi called for stronger government interventions to support SMEs, stressing that the sector remains a major driver of employment, innovation, and economic growth under the country’s Bottom-Up Economic Transformation Agenda.
Kiambu Deputy County Director of Trade Patricia Wambugu acknowledged the difficulties facing entrepreneurs and reaffirmed the county government’s commitment to fostering a business-friendly environment that supports enterprise growth.
She also noted that the planned elevation of Thika to city status is expected to spur investment, stimulate economic activity, and create fresh opportunities for businesses operating within the region.
The Thika Trade and SME Expo is expected to attract entrepreneurs, investors, and industry stakeholders seeking to establish partnerships, promote innovation, and identify new market opportunities.
TJ Premiers Director and event organiser Josphat Nyongesa said the exhibition is intended to strengthen SMEs by providing training, marketing opportunities, and greater exposure to potential customers and investors.
He encouraged business owners to embrace innovation and digital marketing tools to improve their market presence and enhance resilience in the face of ongoing economic challenges.
Stakeholders expressed optimism that collaborative efforts between government institutions and the private sector would help strengthen SMEs and position them for long-term growth despite the prevailing economic headwinds.
