Many Kenyans dream of running their own business with and ideal partner a key ingredient for success.
From the mama mboga in Gikomba to the techpreneur in Westlands, entrepreneurship is seen as the path to financial freedom and impact.
Also read: Supporting Small Businesses in Kenya: A Partnership for Growth and Sustainability
But why is this dream so common?
- Small businesses are the heartbeat of Kenya’s economy. According to the Kenya National Bureau of Statistics:
- Kenya has over 7 million SMEs
- SMEs make up over 90% of all business entities
- They employ more than 15 million people
- And contribute over 30% to the country’s GDP
- Clearly, SMEs matter. But not all of them survive.
- The Harsh Reality for SMEs
- Despite the enthusiasm, many businesses shut down early.
Here’s what stands in their way:
- High failure rates – Many SMEs struggle to survive their first year, and only a small percentage make it to year five.
- Economic shocks – From inflation to cash flow issues, unpredictable economic tides sink many young businesses.
- Policy hurdles – Tax pressure, licensing barriers, and changing regulations make it hard for SMEs to grow.
- Financing struggles – Many banks prefer lending to the government, leaving SMEs crowded out of the credit market.
- Copycat competition – New ideas get copied fast, and price wars erode profit margins.
So how can a small business stay alive and scale?
- NCBA: A Partner That Walks the Talk
- NCBA understands the real challenges facing entrepreneurs—and has stepped up to be part of the solution.
Here’s how:
- Business Training: Through a partnership with Strathmore Business School, over 100 SMEs have accessed world-class training and used it to grow sustainably.
- Access to Funding: In 2023, NCBA signed a $50M deal with Proparco to fund SMEs, green businesses, and women-led enterprises.
- SME Lending Capacity: NCBA renewed its 10-year deal with the Africa Guarantee Fund, doubling its SME lending potential from KES 1.5B to KES 3B.
Whether you’re starting out, scaling up, or simply surviving a tough season – NCBA is the kind of growth partner every business needs.
Kenya’s economy depends on SMEs. But SMEs can’t thrive without the right support.
NCBA isn’t just a bank – it’s a long-term growth partner ready to walk the journey with you.
