Investors at the port city of Mombasa have raised the red flag on the high cost of doing business in the county, saying the situation has made a harsh economic period worse.

They said the trifecta of Covid-19 pandemic shocks, the Russian invasion in Ukraine and the subsequent skyrocketing of the dollar rate have made it difficult to do business.

“Before Covid-19, business was going on so well… I could travel to China and Turkey to purchase my merchandise up to four times in a year,” said Nelly Mwikamba, the Chief Executive of Tajiri Fashions Clothing store in Mombasa.

High cost of dollar

She said the prevailing dollar shortage has automatically affected the buying price of goods from the source market.

“We are currently purchasing dollars at Sh120, up from Sh113 and mind you I am only talking about the Forex exchange rate. In banks it is even worse,” the CEO said during an interview with People Daily yesterday. Kenya National Chamber of Commerce and Industries Mombasa chapter chairman Mustafa Ramadhan said the unpredictable tax regime is now a key obstacle for investors.

While acknowledging that there have been numerous concerns about the cost of doing business in Mombasa, the chairman appealed to the business community to be making submissions during the budget-making processes.

“There is no input. But when it crosses to the County Assembly and becomes a bill, they are quick to raise eyebrows. Remember once it has been passed, you will have to wait until the next year,” Ramadhan said.

Car Importers Association of Kenya chair Peter Otieno said the rising cost of doing business has made it difficult for investments in Mombasa to thrive.

Swabrinah Shaban, who owns a printing business says any increase in advertising rates will make “life more difficult for entrepreneurs with small businesses such as eateries and barbershops because by paying all the taxes as indicated in the bill, it will be difficult for them to realise profit.”