What Kenya's 2017 polls taught us about business survival

A voter casting vote at a polling station; businesses reported loses following stalement in 2017 Kenya's general election

NAIROBI, KENYA: When politics took a toll on the economy in August last year, Jesse Kamau closed his business.

For weeks, he was forced to live off the profit he had sweated for years to accumulate.

His business, after all, had plunged into the red, going from an average profit of Sh700 a day to bringing in absolutely nothing, as buyers avoided not just his cereals stall in Nairobi’s Muthurwa market, but also other shops in the area.

In the days leading up to the August 8 elections, as well as the period that followed the results announcement and court case, business generally slowed. People avoided commercial areas and held on to cash in the face of an uncertain future.

Across the country, busy town centres were turned into shadows of their former selves; they were characterised by closed shops, desolate parking areas and deserted eateries.

For small businesses, that month brought them some of their worst business days.

Call it a day

When the dust settled and it was time to go back to work, Jesse, who had used up all his savings, found that he had to start all over again with a venture he’d spent his prime years building.

“I suddenly found myself struggling to get capital. It’s a miracle that I’m on my feet again. Some of those who used to be my neighbours here closed their businesses because they spent all they had saved in the weeks following the August elections. Their situation got worse when October elections were called,” Jesse says, as he motions at an empty stall adjacent to his cereals shop.

Jesse’s neighbours, one who sold electronics spare parts and another who bought and sold second-hand books, were forced to call it a day and have yet to reopen.

At the far end of the vast shopping centre, two other small business are struggling to survive.

John Mwangi buys wristwatches from his sources at Sh150 and then resells them at Sh200 in Muthurwa. He was forced to live on debt while politics took centre stage for the better part of last year.

“There were days I’d sell nothing. And come evening, I would have to borrow money from my friends to get fare back home. Now I’m just working to clear those debts,” John says.

In the past, he adds, he’d sell 60 watches on a good day, making Sh3,000.

James Katiku, a boda boda rider, says he has had to dig deep to fend for his family.

“We boda boda people know there are good days and bad days. That is why we work hard on normal days – it’s so that we gather enough to help us when things get tough,” he says.

On a good day, James says he makes an average of Sh1,500. But when business slows down, he’s lucky if he makes Sh500.

But then there were those small business owners who came up with ways to sail through the storm. Here’s how they survived.

1. Chase customers

Julius Mureithi is a carpenter who makes and sells doors and windows, and is also contracted to supervise construction projects within and outside Nairobi.

Julius also runs a eatery in Muthurwa, where his menu features traditional dishes.

Call him a Jack of all trades and he’ll tell you he has mastered the art of surviving dry spells in business. He has it down to a science now.

When the eatery made him as little as Sh200 a day or was deserted altogether around the election period, Julius says he fell back on his earnings from carpentry and construction. These earnings helped him stay afloat and kept critical capital out of his reach.

He says safety is a luxury to an entrepreneur because all sorts of storms are just waiting to hit businesses.

“A business person must learn to chase their customers. When they vanish, you don’t go into hiding as well. You must follow them and tell them you can deliver your services and products to wherever they are and where they feel safe. A good business person doesn’t chase safety.”

2. Diversify

Mark Otieno operates a shoeshine stall along Moi Avenue in Nairobi. He recounts business being so bad that he was forced to down his tools for days.

“However, the more you stay away from work, the lazier you become and the more you eat into you savings. It hurts when you have to come back to start all over again,” Mark says.

Recognising the need to diversify his income streams and to have something to fall back on when things go wrong, Mark opened a salon in Nairobi’s Pipeline area.

He used his savings from daily profits that can run up to Sh3,000 from his shoeshine business, and in under six months, Mark has employed six people to help run his salon.

3. Have a side gig

When it became impossible to find people to ferry into town centres, Ezekiel Mbugua, who operates a boda boda, decided to try his luck elsewhere.

He decided to become a middleman, connecting poultry farmers in Murang’a to customers in Nairobi.

When he only had his motorcycle to rely on for money, he recalls sitting idly in town, unable to get a single customer.

“The idleness was worse than the empty pockets. When you have needs to meet, you can’t afford to be idle, yet you know you can invest in some quick, profitable business. I learnt that you must have as many ventures as you possibly can manage,” Ezekiel says.

To avoid draining his savings, he decided to reach out to poultry farmers he know in Murang’a. Initially, this new sideline was slow, but after things calmed down and Christmas drew nearer, Ezekiel saw a steady stream of eateries book his chicken to cash in on the festive period.

“With poultry farming, I avoided being idle at a time when my friends were closing their businesses. And I’ve made some good money as well,” he says.

Ezekiel buys the chicken he sells at Sh300 a piece, and then resells it at Sh800 or more to individuals and small eateries in Nairobi.