Eastleigh traders brace for uncertainty, decry harsh economic times
A spot check across the business district revealed a contrasting perspective, with business owners sharing a different outlook than the reports suggesting a promising future for businesses in the coming year.
Recent reports, for instance the Central Bank of Kenya's (CBK) January 2025 CEO Survey, show business leaders in the country are expressing optimism about the country's economic prospects in 2025.
This is with projections of around 5.0 percent Gross Domestic Product (GDP) growth, driven by factors like improving macroeconomic stability, easing inflation and a stabilised exchange rate.
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Notably, the key sectors expected to see growth include services, wholesale/retail, transport/storage, and finance, with positive sentiment regarding favorable weather conditions and declining interest rates as key drivers.
However, the rhetoric has not been well received by a segment of business owners in Eastleigh, Nairobi's largest commercial district.
A spot check across the business district revealed a contrasting perspective, with business owners sharing a different outlook than the reports suggesting a promising future for businesses in the coming year.
Out of five business owners selling various commodities: Household furniture, clothes and shoes, and curtains, at least three expressed growing concerns about their prospects for growth during the year.
They cited an unpredictable business environment, stemming from government policies and politics of the day, as major barriers to expansion and growth prospects.
A dealer in the household furniture business, who spoke on condition of anonymity, voiced his skepticism about the prospects for sustained growth in the year ahead.
"The government has been unpredictable in its support promises and policies, something that has become a recurring theme," he said.
He added that while he has seen steady demand for their products in the past two high-season months, he has been hesitant to invest in growth, mainly due to the uncertainty of the government-dictated environment.
"I have been in this business for years, but with the constant changes in taxes, regulations and the overall economic landscape, I can't afford to take on additional risks," he said.
Abdi, a clothes and shoes seller, said the unpredictability of the market he has witnessed makes long-term planning nearly impossible.
"While business has been manageable, there is a growing fear that any attempt to expand could lead to financial losses if the economy continues with the turbulence. I can't make any bold decisions when the market is so volatile," Abdi said.
In the same vein, a curtains business owner who also requested to remain anonymous, said while the local market is active, the absence of clear and consistent government policies leaves them with little confidence in the future.
"We need the government to create a predictable environment that encourages us to reinvest and grow. Without it, we are simply maintaining what we have," he said.
They thus believe that unless the government steps up to address the unpredictability of the business environment, their dreams of expansion will remain out of reach.
Sentiments of a shoe seller at Yare Plaza, a mall on Mohamed Yusuf Haji Lane, who identified himself as Mwangi, in September last year, further confirms the concern.
"Sales aren't as much as they were in previous years. Customers are hesitant to spend on expensive items, opting for bargains that often result in either lost customers or losses," Mwangi said.
"During these bargaining sprees, we sometimes end up with no sales at all, forcing us to lower our profit margins to stay in business."
He mentioned this in reference to the tough economic conditions and environment that were weighing heavily on consumers.
He also mentioned a shift from high-end products to more affordable options, with shoe prices now ranging from Sh350 to Sh500, down from Sh2,000 to Sh2,500.
"We have had to adjust our inventory to meet the current demands of our customers," he added.
This arguably puts business growth prospects in jeopardy.
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