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Originally published by The Standard Business
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February 1, 2026
1d ago

State making it hard for businesses to survive

State making it hard for businesses to survive

It is an established fact globally that most businesses do not survive beyond their first three years...

✨ Key Highlights

Kenyan businesses face significant challenges to survival, not only from common factors like limited capital and weak demand but also from what many perceive as deliberate obstruction by authorities through excessive regulation and harassment. A recent experience highlighted this, with a new business owner facing a barrage of inspections from various officials demanding licenses and compliance, despite having all necessary documentation.

  • Many Kenyan businesses fail to survive beyond their first three years due to various factors including limited capital and poor cash flow.
  • Authorities are accused of actively shortening business lifespans through excessive regulation, harassment, and a predatory approach to enforcement.
  • Despite calls for supportive measures like tax holidays and reduced license burdens for new enterprises, enforcement often feels hostile and extractive, targeting businesses for revenue collection and rent-seeking.

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