African Development Bank (AfDB) reports that systemic challenges such as high informality and costly business practices hinder Kenya’s business capital growth, particularly affecting micro, small, and medium enterprises (MSMEs).

• Registering a business in Kenya can cost up to 15% of the Gross National Income (GNI) per capita.
• The AfDB identifies inadequate access to credit and high operational costs as key barriers for entrepreneurs.
• The report suggests digitizing financial systems and improving infrastructure to strengthen the business environment and support more formal enterprises.