Small and medium-sized businesses (SMEs) are among the most affected sectors globally by the COVID-19 pandemic—and Kenya is no exception. Inter-county travel restrictions, lockdowns, and curfews brought massive social and economic disruptions, deeply hurting small, medium, and micro-businesses across the country.
Cybercafes, snack vendors, cake makers, garbage collectors, butcheries, photographers, car washes, wine shops, bakeries, salons, poultry farmers, aquaculture ventures, and even artisans making beaded sandals and handbags were among the hardest hit.
According to a Central Bank of Kenya survey in April 2020, nearly 75% of SMEs were at risk of collapse due to limited financial reserves.
Despite the challenges, many entrepreneurs found ways to adapt. Some pivoted their services to meet new customer demands, while others embraced digital tools such as free online POS software to manage operations and sales during lockdowns. This shift marked the beginning of a digital transformation trend among Kenyan SMEs—a strategy that continues to strengthen their resilience today.
The Kenyan government has acknowledged the vital role SMEs play in the economy. Under Vision 2030, efforts are being made to support the informal sector by raising productivity, creating jobs, boosting incomes, and strengthening public revenue. The vision aims to transform Kenya into a newly industrializing, middle-income country with improved quality of life for all citizens.
While COVID-19 posed one of the greatest challenges to SMEs, it also opened opportunities for innovation, creativity, and digital adoption. As restrictions ease and the economy reopens, the SME sector is expected to bounce back stronger.
For business owners, the key lies in:
Embracing digital solutions like cloud-based POS systems and e-commerce platforms.
Diversifying products and services to meet shifting consumer demands.
Leveraging government initiatives and financial support programs.
Staying innovative and resilient in uncertain times.
The pandemic has tested the resilience of Kenyan SMEs like never before. Yet, it has also proven the sector’s potential for growth and adaptation. By embracing technology and innovation, small and medium businesses can not only survive but also thrive in the new post-COVID economy.
