BiasharaSME

Small business owners have ignored insurance and it is costing them thousands of shillings. Find out how investing in insurance can save your business from potentially crippling threats and reduce your tax bill.

Sam Mutua has learnt a good business lesson the hard way. The Wakulima Market trader who supplies fresh vegetables has closed shop twice in the three years he has been in the business. The reason? “I always run out of cash to run my business,” said Mr. Mutua who makes at least Sh60,000 in sales daily.

In November last year, Kenya was forced to refund more than Sh2.6 billion in donor money that has been misused by corrupt government officials. While the refund caused Kenya a big embarrassment globally and meant it missed out on projects it would have built with the monies, the saga brought to the fore the importance of internal controls.

For small businesses, 2011 was a hard year as inflation, high interest rates and other economic problems thinned out cash from entrepreneurs, leaving them on the brink of closing down. This year could turn out tougher, being an election year.