SMEs warn soaring prices of raw materials, costly licences threaten survival

Small and Medium Enterprises (SMEs) say the rising cost of doing business is threatening their survival, with many struggling under the weight of expensive licences and soaring prices of raw materials.

At the Coast, a couple running a beauty products venture revealed they have had to deal with cultural barriers, limited access to raw materials and costly permits just to keep their business afloat.

Like many others, they are increasingly turning to expos as an affordable platform to showcase their products and connect with customers.

Entrepreneurs are now urging the government to step in by reducing licensing fees and easing the cost of raw materials, which they believe would help small businesses expand and create jobs.

The founder of Ishmal Halal Expo, Aisha Omar, a company that supports SMEs, women and youth, said licensing costs remain a major obstacle.

“Most of the challenges SMEs face are around acquiring licences. The charges are very high, especially when you look at the state of Kenya’s economy. We are asking the government to review these charges so that we can get support to grow,” she said.

“We do not want to remain small businesses forever. This is a journey, and we are setting goals. In four to six years, we hope to become large international companies, exporting what we produce here. The Halal Chamber of Commerce is already coming on board to support traders in taking their products abroad, and we are encouraged when international partners come to Kenya to support our ventures. Everyone has a dream, and ours is to see our businesses grow and be recognised.”

Faruk Said Ba’ates, another SME operator, described the daily struggles of traders.

“The challenges are many, but we are pushing through. Raw material prices keep changing. Today it is this price, tomorrow it goes up. We understand the government needs revenue, but it should also consider us, small traders. If costs rise too much, we suffer. Even when you supply goods to shops, they may delay payments, which makes it harder. Licensing and sourcing raw materials from abroad also remain a burden for small businesses trying to get started,” he said.

For Ilye Seif, prejudice and sabotage from competitors have added to the difficulties.

“Some people look down on us and claim we cannot produce quality products, while others even destroy our items in shops. At times, when we order supplies, they come from far and delays occur, yet customers are already demanding the products. These challenges really affect us,” he explained.

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