
EXPORTING MADE EASY


Kenya, often referred to as the “Gateway to East Africa,” boasts one of the most vibrant and diverse economies on the African continent. Its strategic location, skilled workforce, and growing infrastructure make it a hub for trade and investment in the region. However, doing business in Kenya can be both fascinating and challenging due to the country’s unique cultural, economic, and social dynamics. As a Kenyan, I want to shed light on the peculiarities of engaging with Kenya’s business environment, offering insight into what works, what doesn’t, and how to navigate the complexities of this beautiful land.
1. The Importance of Relationships and Trust
In Kenya, business is as much about relationships as it is about transactions. Building trust and rapport is paramount before any significant deal is closed. Here, a handshake is not just a formality—it is a sign of mutual respect and the beginning of a relationship.
For foreign investors or partners, the expectation is clear: take time to know your Kenyan counterparts. Attend meetings in person whenever possible, share a meal, or even visit their hometowns if invited. Small talk is crucial in these interactions, and topics like family, football, or current events are a good way to establish rapport before diving into business discussions.
However, this emphasis on relationships often means that deals may take longer to close compared to Western standards. Patience is key. Kenyans will rarely rush into an agreement without careful consideration.
2. Understanding “Kenyan Time”
Kenyan time, or “African time,” as some locals jokingly call it, is a widely acknowledged cultural phenomenon. The concept of punctuality is often flexible, particularly for informal meetings. While corporate settings, especially in Nairobi, are becoming stricter about keeping time, don’t be surprised if meetings start a bit late.
This is not a sign of disrespect but a cultural trait. Time in Kenya is viewed more fluidly, and people often prioritize relationships and pressing commitments over rigid schedules. If you’re hosting a meeting, it’s best to communicate a clear agenda and follow up with reminders to ensure better timekeeping.
3. Hustle Culture: The Side Hustle Economy
One of the defining traits of Kenyan business culture is the entrepreneurial spirit. Many Kenyans are involved in side hustles—small businesses or ventures that supplement their primary income. Whether it’s farming, running an online shop, or providing freelance services, side hustles are deeply embedded in the culture.
For businesses looking to work with Kenyans, this hustle mentality is both a strength and a challenge. On one hand, it fosters innovation and resilience. On the other, it sometimes means individuals are juggling multiple commitments, which can impact consistency or focus.
Understanding this dynamic can help businesses foster realistic expectations when working with Kenyan partners or employees.
4. The Role of Bureaucracy
Doing business in Kenya often requires navigating significant amounts of bureaucracy. From registering a company to obtaining licenses and permits, the process can be time-consuming and, at times, frustrating. Government institutions like the Kenya Revenue Authority (KRA) and the Registrar of Companies have digitized many services to streamline operations, but delays still occur.
Corruption, while reducing in recent years, is another challenge that foreign businesses must be mindful of. The government has made efforts to crack down on unethical practices, but it remains an issue in certain sectors. To succeed, it’s critical to follow due process, work with reputable local consultants, and ensure compliance with legal requirements.
5. A Melting Pot of Languages and Cultures
Kenya is a multilingual country with over 40 ethnic groups, each with its own language and customs. While English and Swahili are the official languages, understanding regional cultural nuances can be an asset in business. For instance:
• In coastal regions, Swahili is the dominant language, and the culture is heavily influenced by Islamic traditions.
• In central Kenya, home to the Kikuyu community, business culture is entrepreneurial and fast-paced.
• In western Kenya, home to the Luo and Luhya communities, hospitality and social connections play a significant role.
Learning a few Swahili phrases can go a long way in building rapport. Simple words like “asante” (thank you) or “karibu” (welcome) can break the ice and show respect for local culture.
6. The Role of Informal Networks: “Chama” and Social Capital
In Kenya, informal savings and investment groups called chamas are a powerful force in the business world. These groups, often composed of friends, family, or colleagues, pool resources to fund ventures, purchase property, or invest in large projects.
Understanding the role of chamas can provide insight into how many Kenyans fund their businesses or manage finances. Partnerships and collaborations are often built on a foundation of social trust and shared goals within these networks.
7. Tech and Mobile Money Revolution
Kenya is renowned as the home of M-Pesa, the mobile money platform that has transformed financial transactions across Africa. Today, over 80% of the adult population uses mobile money for everything from paying bills to purchasing goods.
This tech-savvy culture extends to other sectors, including e-commerce, fintech, and digital marketing. For businesses looking to operate in Kenya, integrating mobile payment systems is not optional—it’s a necessity. The adoption of technology also means that Kenyans are quick to embrace innovation, making the country an exciting space for startups and tech-driven businesses.
8. Negotiation Culture: The Art of Bargaining
Negotiation is an integral part of Kenyan business culture. Whether you’re at a market or closing a corporate deal, bargaining is expected. Kenyans are skilled negotiators, often aiming for a win-win outcome.
For foreigners, this can be an adjustment. Prices and terms are rarely fixed, and the first offer is often just a starting point. Being patient, respectful, and flexible during negotiations will go a long way in building trust and securing favourable terms.
9. Resilience in the Face of Challenges
Kenyans are incredibly resilient and adaptable. Whether it’s dealing with economic fluctuations, political uncertainty, or global challenges like the COVID-19 pandemic, the Kenyan spirit of perseverance shines through.
This resilience is evident in how businesses operate. SMEs, in particular, are the backbone of the economy, and entrepreneurs are always finding creative ways to overcome obstacles. For foreign investors, this means that while the market may have its challenges, the potential for long-term growth and success is immense.
10. The Influence of Politics on Business
Politics in Kenya has a significant impact on the business environment. Election years, which occur every five years, often bring economic uncertainty as investors adopt a wait-and-see approach. Businesses may experience slowed operations during this period due to reduced consumer spending and political tensions.
That said, the government is keen on promoting foreign investment and has established policies to attract international businesses. Understanding the political landscape and its potential impact on your sector is crucial for success.
11. The Role of Religion
Religion plays a prominent role in Kenyan society, with Christianity and Islam being the dominant faiths. Religious values often influence workplace ethics, business practices, and interpersonal relationships.
For example, many Kenyans value honesty, humility, and a sense of community—principles rooted in their religious beliefs. Acknowledging and respecting these values can help foster better working relationships and partnerships.
12. The Growing Middle Class and Consumerism
Kenya’s growing middle class is a driving force behind the country’s economy. With increased disposable income, urbanization, and access to technology, this demographic has become a significant market for goods and services.
Brands that cater to the middle class with affordable yet high-quality products are likely to succeed. Additionally, Kenyan consumers value authenticity and tend to favour brands that align with their aspirations and cultural values.
13. Environmental and Social Responsibility
Sustainability and social responsibility are becoming increasingly important in Kenya’s business landscape. Consumers and investors alike are gravitating towards businesses that demonstrate environmental awareness and give back to the community.
For example, businesses in the agricultural sector are embracing climate-smart practices, while companies in manufacturing are adopting green energy solutions. Showing a commitment to sustainability can enhance your reputation and attract loyal customers in Kenya.
14. Rural vs. Urban Dynamics
Kenya is a country of contrasts, with urban centres like Nairobi, Mombasa, and Kisumu offering modern infrastructure and opportunities, while rural areas are still deeply rooted in tradition. Businesses must adapt their strategies based on their target market.
Urban areas are characterized by fast-paced lifestyles, tech-savvy consumers, and a preference for convenience. In rural areas, however, personal relationships, traditional customs, and local networks carry more weight.
Conclusion
Doing business in Kenya is an exciting and rewarding experience, but it requires a deep understanding of the country’s unique culture, challenges, and opportunities. From the emphasis on relationships and trust to the resilience of its people, Kenya offers a dynamic business environment filled with potential.
For anyone looking to engage with the Kenyan market, my advice is simple: be patient, be respectful, and embrace the Kenyan spirit of innovation and community. When you approach business with an open mind and a willingness to adapt, you’ll find that Kenya is not just a place to do business—it’s a place to grow, thrive, and make lifelong connections.