For many Kenyan entrepreneurs, starting a business is only the beginning. The greater challenge lies in keeping it alive long enough to grow.

While small and medium-sized enterprises (SMEs) account for the bulk of businesses in the country and employ millions of people, many fail to survive beyond their early years, raising concerns over what it will take to build enterprises that last.

From rising operating costs and limited access to affordable financing to stiff competition and rapid technological changes, SMEs continue to operate in an increasingly difficult environment. Many business owners also struggle to separate ownership from management, making succession planning an afterthought until it is too late.

Yet business experts argue that longevity is becoming just as important a measure of success as profitability. Companies that invest in governance, embrace innovation and build lasting partnerships are increasingly proving more resilient during economic downturns than those operating in isolation.

Speaking on July 9, 2026, Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui said Kenya must create conditions that allow more local businesses to grow from small and family-owned enterprises into competitive corporations.

“Our role is to create an enabling environment where family-owned businesses can grow into major corporations, access the capital markets and compete regionally and globally,” the CS said.

Building resilient enterprises

The remarks come at a time when Kenya is placing greater emphasis on strengthening the private sector as a driver of employment and economic growth. However, many SMEs continue to cite access to capital, high taxation, unpredictable market conditions and the cost of adopting new technologies as major barriers to expansion.

Technology, in particular, is reshaping the way businesses operate. Companies that digitise their operations, improve efficiency and strengthen customer relationships are increasingly better positioned to compete in fast-changing markets.

At the same time, experts say good corporate governance, ethical leadership and transparency are becoming essential in attracting investors, lenders and long-term business partners.

Vivo Energy Kenya Managing Director Peter Murungi said trust has been central to sustaining long-term business relationships despite changing market conditions.

“The lubricants business is highly competitive and presents its share of challenges. Yet throughout the years, our two organisations have worked side by side, navigating changing market dynamics and industry headwinds with determination and confidence. Together, we have not only weathered those challenges but emerged stronger because of them,” he said.

As Kenya pursues industrialisation and seeks to create more jobs through enterprise development, the debate is shifting from helping businesses start to helping them endure.

For thousands of SMEs across the country, the next frontier may not simply be surviving another financial year, but building institutions capable of outliving their founders, adapting to change and competing beyond Kenya’s borders.