Why election years can be the worst time to start a business

Protesters gather to block a main road with burning barricades and urban debris during clashes at Saba Saba Day demonstrations in Nairobi on July 7, 2025.[AFP]

Starting a business right before an electioneering period can prove to be a costly gamble for investors, especially if misinformation and disinformation affect investor confidence. This forces investors to adopt a wait-and-see attitude, a move likely to stymie trade activities in most parts of the country.

For example, a few months before the general elections in 2022, a potential investor posted on a social media platform, inquiring about how much is needed to set up a petrol station business and the likely levies.