A report by Tala MoneyMarch 2025 found a 7 percent increase in the number of people owning businesses across the country, with financial challenges fueling this trend.
The report further found that 9 in 10 Kenyans surveyed reported having experienced financial challenges in the last six months underscoring the rising cost of living, with a 5 percent decline in the number of people who depend on formal employment as a primary source of income.
Jerry Mutai, a business owner and multi award winning entrepreneur pointed out that starting a business is better than being employed.
Mutai owns a computer retail business (Jerry Computers). He told JEDCA MEDIA that businesses offer a wide range of opportunities compared to employment stating that jobs offer limited income.
According to him, inflation has driven Kenyans to seek alternative ways to earn a living since income from formal employment don’t match the rising inflation.
“Inflation rate rapidly increased and drove many to live below the poverty line. Initially, employed Kenyans never saw the need of having a side hustle but the rise in cost of living was an eye opener to all,” Mutai, the 2024 Foya Award winning entrepreneur said.
“Owning a business is far much better than seeking for a job. Jobs are limited but business offers wide range of opportunities and there is always a room for everyone willing to venture into whatever they set their mind [to pursue]. As an entrepreneur, I don’t know how to wait for an opportunity to knock, I find ways of creating more of them everyday.”
He emphasized that business can be a long lasting investment that gives not only a sense of freedom but also opportunities to grow and learn from other business owners, unlike employment which he believes that it limits someone’s scope of interaction and opportunities.
“Personally, I chose business because it offers me freedom to network with already established entrepreneurs, professionals from all walks of lives and learn from them rather than a job in which I will only interact with specific professionals and clients in the same [industry],” he said.
“Business is a lasting investment that if managed properly it brings in generational wealth.”
Mutai further pointed out that many companies set unrealistic demands for jobseekers, including job experience which most graduates don’t have. This, he said, locks out many young people from securing employment.
He added that starting a business gives the youth an opportunity to put their skills to work as opposed to constantly looking for scarce jobs.
“Kenyans venturing into business allows them to put into practice their skills early enough rather than waiting for long queues of employment. Also, in search of greener pastures abroad many Kenyans have been scammed, lost their money and got no jobs as promised thus preferring to start businesses here in Kenya than to look for jobs abroad,” he said.
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This trend of Kenyans opting for side hustles and starting businesses is driven by increasing job insecurities, with many companies retrenching their employees.
Another concern is the rising inflation which affects the households’ financial stability. Often, inflation rises but income from employment remains fixed thus reducing buying power for many households.
With approximately one million Kenya’s particularly young people entering the job market each year, scarcity of job opportunities have also driven them to open small businesses to cushion themselves from tough economic situations and rising cost of living.
