The Democracy for the Citizens Party (DCP), Nairobi Patron Irungu Nyakera, has raised concern over a growing but often overlooked threat to Kenya’s economic stability: the gradual exit of long-standing companies from the country.

According to Nyakera’s statement shared via X on Tuesday, December 30, 2025, Kenyans should be deeply worried when firms that have operated locally for generations begin to scale down, relocate, or shut their doors altogether, as this signals deeper structural problems within the economy. He was reacting to reports of firms such as Diageo and Vodafone exiting the Kenyan market.

Nyakera notes that what makes the situation especially troubling is that the causes of this trend are neither mysterious nor unavoidable. High electricity costs continue to burden manufacturers and service providers alike, reducing competitiveness both locally and regionally. At the same time, unpredictable and inconsistent taxation policies create uncertainty, making it difficult for businesses to plan, invest, and expand with confidence.

A sense of worry

”Kenyans should be worried when companies that have operated here for generations begin to scale down, relocate, or shut their doors altogether. What makes this even more painful is that the reasons are well-known and entirely fixable. High power costs, unpredictable and inconsistent taxation, punitive regulation, and expensive credit have made it harder and harder to do business in Kenya,” he wrote.

Irungu added that together, these challenges have steadily eroded Kenya’s appeal as an investment destination, despite its strategic position and skilled workforce.

Nyakera warns that this problem will not resolve itself through market forces alone. Without deliberate policy choices aimed at welcoming, protecting, and sustaining investment, more companies are likely to exit.

Deliberate choices

”This problem will not solve itself. Unless Kenya deliberately chooses to become a country that welcomes and protects investment, more firms will leave. Economies do not collapse overnight. They weaken quietly, one factory, one office, one exit at a time.” He said.

His remarks come at a moment when President William Ruto has reaffirmed his commitment to revive industrialisation, create job opportunities among the youth and improve the country’s general infrastructure to attain first-world status.