Why business sustainability demands more than survival in tough climate

Standard Chartered Kenya Board of Directors Chairperson Kellen Kariuki and Managing Director and CEO Kenya and Africa Kariuki Ngari during the launch of the bank's Sustainability Progress Report in Nairobi on July 17, 2025. [Wilberforce Okwiri, Standard] After 25 years working with Kenyan businesses in accounting, audit, tax, and advisory, I have learned that true sustainability is not about simply staying open, it is about having the discipline and foresight to grow, adapt, and endure in good times and bad. Today, that lesson feels more urgent than ever. Businesses in Kenya are facing extraordinary pressures. Tax policy debates are roiling the country, compliance demands are growing more complex and costly, and economic uncertainty is testing even the most resilient entrepreneurs. In this environment, it is easy for business owners to go into survival mode: cutting costs at all costs, delaying tough decisions, or reacting instead of planning. But in my experience, that short-term approach is exactly what kills businesses in the long run. When we talk about building financially sound and sustainable businesses, we are really talking about building enterprises that can outlast any single owner, policy shifts, political regime and continue to deliver value to employees, clients, and society. And that kind of durability does not happen by accident. It demands choices that can be uncomfortable, even painful. First, it means planning. Too many businesses, especially smaller or family-run ones, resist formal planning. They see it as paperwork and an unnecessary hustle. But without a plan, you are at the mercy of circumstances. You cannot model scenarios, anticipate risks, or allocate resources wisely. Especially in Kenya's volatile policy environment, planning is not optional; it is survival. Tax policy can shift in a single budget speech. Regulatory enforcement can intensify with a change of guard. If you are not prepared to adapt, you are vulnerable. I have seen businesses destroyed not by lack of demand but by lack of foresight. The ones that survive are those that build flexibility into their plans. That means not just annual budgets, but scenario planning: best case, worst case, and everything in between. Second, sustainability demands financial discipline. This is not glamorous work. It is the routine of keeping proper records, separating personal and business finances, doing weekly reconciliations, approving expenses, and reviewing the numbers regularly.Many SMEs think they will invest in these systems once they are 'big'. That is backwards. Good financial systems are what make growth possible. They give you clarity and control. Without them, even well-capitalised businesses can bleed cash, miss tax obligations, or make bad decisions based on false assumptions. On the topic of compliance, I understand why so many Kenyan business owners see it as a burden. Taxes are getting harder to understand. Filing is more complicated than ever, and the penalties can feel harsh. But the hard truth is, ignoring compliance does not make it go away. It just turns it into an emergency. In my years advising clients, I have seen the difference that a proactive approach makes. Compliance is not just about avoiding fines, it is about protecting your profitability. Money spent on penalties is money you cannot invest in growth. Moreover, a strong compliance track record builds trust with banks, investors, regulators, even potential partners. It is part of what moves a business from informal to formal, from vulnerable to investable. Another topic that does not get enough attention in Kenya's business circles is succession planning. Too often, family businesses or solo entrepreneurs assume they will just "figure it out." But without a clear plan, transitions can be messy. I have watched businesses collapse when the founder stepped aside or passed away without preparing the next generation. Employees leave. Customers lose confidence. Value evaporates. Succession planning is not about ego or even control. It is about continuity, making sure the systems, culture, and strategy you worked so hard to build don't die with you. Beyond these structural decisions, I think the single most important trait for sustainable business in Kenya today is the willingness to confront reality head-on. That means facing uncomfortable truths: maybe your margins are not sustainable. Maybe you are too dependent on a single client or supplier. Maybe you are outgrowing your systems, or your team needs new skills. When the environment is this tough, when taxes are rising, costs are unpredictable, and competition is fierce, you cannot afford self-destruction. Rigorous, honest self-examination is your best defense. Genuine accounts and risk consultants are not just about ticking compliance boxes or balancing books. They should help clients build businesses to last. And that means asking the hard questions, over and over. If the last 25 years have taught me anything, from COVID-19 to tax protests, it is that the environment will not stand still for us. Entrepreneurs must build flexibility, discipline, and foresight into their daily habits. That is what sustainability really means.The Writer is the Managing Partner, MGK Consulting

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