Business costs are rising: Who is protecting Kenyan firms’ profit margins?
Rising business costs are pressuring Kenyan enterprises. Still, the bigger threat may be what businesses fail to notice: the gradual loss of profit margins through delayed payments, expensive financing and operational inefficiencies. According to the Centre for Business Innovation and Training (CBiT), protecting profitability requires businesses to look beyond the prices they pay for raw […]
Kenyan firms are facing rising business costs that threaten profit margins, according to the Centre for Business Innovation and Training (CBiT). The issue goes beyond the cost of raw materials, as delayed payments, expensive financing, and operational inefficiencies can erode profit margins. The World Bank Enterprise Survey 2025 reveals that the average time to receive payment for government contracts in Kenya is 127 days, which can tie up working capital.
Additionally, 40% of surveyed Kenyan firms identify access to finance as a significant obstacle to their operations. To protect profitability, businesses must examine profitability at the level of individual products, customers, and contracts, rather than relying on total sales as the main measure of performance. CBiT Managing Director Beatrice Mwasi emphasizes that businesses should look for ways to extract greater commercial value from their existing products and services before expanding output.
Brief written by urgent.news from People Daily Kenya's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
