Nairobi’s mitumba and retail traders pin hopes on affordable basics to keep customers buying

With only one quarter left in 2025, small-scale traders in Nairobi are cautiously optimistic about the economy but insist that easing the cost of living is key to unlocking growth.

A spot-check survey by The Eastleigh Voice in different parts of Nairobi found that most small business operators remain hopeful of a stronger finish to the year and better prospects for 2026.

Out of five categories sampled—grocery shop, mitumba trader, food joint, beauty parlour, and general retail store—three expressed optimism about an economic upturn, representing 60 per cent of respondents.

The other two, a retail store and a mitumba trader, were less certain, citing a stop-and-go economy that has left consumer spending power unpredictable.

“Business has been very up and down. Some days are good, others are very low, and cannot predict with confidence what tomorrow brings,” said Dan, a retail store owner in Kasarani.

Make food more affordable

“But if the government can make food and daily household items more affordable, people will spend more. That’s when we feel the difference in our chairs.”

His concerns were echoed by mitumba trader Mbugua Antony, who operates along Thika Road.

“Most of my customers want to buy, but they say they must prioritise basics like unga, cooking oil, and fare. If these items remain expensive, then clothing feels like a luxury to them,” he said.

Mbugua added that for his business, and others like it, to thrive in the long term, consumers need enough disposable income.

Overall, the traders’ main plea is for the government to keep basic commodities affordable. They argue that the squeeze on household budgets has been the biggest barrier to their growth in 2025.

Their cautious optimism mirrors findings in the Central Bank of Kenya’s (CBK) June Market Perceptions Survey, which gathered views from banks and private firms across the country.

Inflation

Respondents expressed confidence in the economy’s near-term outlook, expecting inflation to remain within the 5±2.5 per cent target range, supported by stable exchange rates, adequate food supply, and moderating energy prices.

Data from the Kenya National Bureau of Statistics (KNBS) shows inflation rose to 4.5 per cent in August, up from 4.1 per cent in July, largely driven by food and transport costs.

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The CBK survey also projected moderate to strong economic activity between August and October, supported by agriculture, a stable macroeconomic environment, and government efforts to clear pending bills.

Stronger economic growth

Looking ahead, respondents anticipate stronger economic growth in 2025 compared to 2024, driven by a robust agricultural sector, a resilient services industry, and stable macroeconomic conditions. Banks, in particular, foresee a recovery in private sector credit growth next year, aided by lower lending rates.

Still, respondents underscored the need for policy action. They called for reduced inefficiencies and wasteful spending, timely settlement of government pending bills, and predictable tax policies to inspire investor and consumer confidence.

Other recommendations include expanding affordable credit for SMEs, lowering electricity and fuel costs, and boosting regional trade. Public engagement and prudent debt management were also cited as critical to building a competitive business environment.

For small traders in Nairobi, however, the priority remains more immediate: making life affordable enough to revive consumer spending.

“We don’t need miracles. Just make sure people can afford the basics, and business will take care of itself,” Mbugua summed up.