Rising Middle-East tensions pile pressure on Kenyan women-led businesses

Kenyan women entrepreneurs are grappling with mounting economic pressure linked to the ongoing Israel–Iran conflict, with industry players warning that escalating production costs could soon be passed on to consumers.

Businesses that depend on imports of raw materials and finished goods from the Middle East and other affected regions are bearing the brunt, as shipping, insurance and sourcing costs surge amid continued geopolitical uncertainty.

The spike in importation expenses is threatening the survival of many small and medium-sized enterprises (SMEs), particularly women-led ventures that often operate on limited capital and thinner margins.

Dream Credit Limited founder Lilian Gachoki who led calls for caution among entrepreneurs warned that the situation could worsen if global supply chains remain disrupted.

“We are already seeing the ripple effects. The cost of doing business has risen sharply, and for many small enterprises, especially those run by women, it is becoming increasingly difficult to sustain operations,” she said.

Gachoki spoke during the Topspin Awards, an event celebrating women excelling in various sectors, where she urged entrepreneurs to prepare for prolonged economic uncertainty.

“As entrepreneurs, we must brace for further shocks. The global environment remains unpredictable, and unless stability is restored, the cost pressures will persist. It calls for resilience and a rethink of business strategies,” she added.

Across sectors, entrepreneurs are already feeling the pinch.

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Rose Ntong’ondu, founder of Make-up by Rose, noted that rising costs are steadily eroding profitability.

“The prices of imported beauty products and raw materials have nearly doubled in some instances. What used to be profitable is now barely sustainable. We are left with the difficult choice of absorbing the losses or increasing prices and risking customers,” she said.

She cautioned that maintaining current prices may not be viable for long.

“At some point, businesses will have to adjust prices. Operating at a loss is not sustainable,” Ntong’ondu added.

Stakeholders warned that continued cost escalation could eventually push up prices of goods and services, contributing to inflationary pressure in the local market.

In addition to rising costs, delayed payments from government institutions have worsened the situation for many entrepreneurs, particularly those supplying goods and services to the public sector.

Gachoki emphasized the need for timely settlement of pending bills to ease financial strain on businesses.

“Clearing pending bills would inject much-needed liquidity into the economy and help businesses meet their obligations, including paying employees and servicing loans,” she said.

Even as challenges mount, some sectors are identifying opportunities within the shifting economic landscape. Real estate players say market adjustments could present investment openings.

Adval Properties Ltd’s Abdikheir Dubor noted that declining property prices in some segments may create entry points for investors.

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“In every crisis, there is opportunity. The current market shifts could favour investors who are strategic and well-informed. It may be an ideal time to acquire property at more competitive prices,” he said.

Dubor encouraged entrepreneurs to diversify their investments as a way of managing risk and building financial resilience.

Industry leaders at the event also underscored the importance of innovation, adaptability and skills development in navigating the uncertain environment.

Kaive International Training College CEO Anita Cheptekei Juma and Jecinta Kemuma of Kemuma Engineering Systems urged women to confidently pursue entrepreneurship, saying they have the capacity to build enterprises and create employment.

They encouraged aspiring businesswomen to start small, remain consistent and stay focused despite economic challenges.

Juma noted that while the business environment remains tough, entrepreneurs must take responsibility for strengthening their ventures.

“We should not criticize the government all the time; we also have a role to play in improving our businesses. I encourage my colleagues to stay focused and resilient in pursuit of their goals,” she said.

Njeri emphasized the need for courage and persistence, particularly in industries traditionally dominated by men.

“Women should not hold themselves back. We have the ability to build strong businesses that can employ others. Start where you are, remain disciplined, and grow step by step—success takes time,” she said.

She added that mentorship, networking and continuous learning are critical in helping women overcome challenges and scale their enterprises.

By John Kamau

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