Best & Worst Counties to Run Small Businesses 2025 [LIST]

Hello and welcome to the Money News Roundup Newsletter, where we cover the best and worst counties to run a small business — and how merger talks between NCBA and Stanbic Bank earned the Uhuru and Ndegwa families Ksh12.4 billion in just five days.

Best & Worst Counties to Run Small Businesses

Uasin Gishu has been ranked the best county in Kenya to run a small business, according to the 2025 County Business Support Index (CBSI) by the African Institute of MSME Policy and Research and consultancy firm Viffa Consult. It is followed by Machakos, Nairobi, Nakuru, Bungoma, and Mombasa counties, respectively.

According to the report, the top-ranked counties stood out due to the affordability of business licences, availability of funding, and supportive infrastructure, among other factors. The survey, which covered 15 counties, focused on the affordability of general trade and industrial licences, the ease of obtaining permits, and the support afforded to businesses. It highlighted that harmonised licence costs and strong business support services—such as access to funding and incubation hubs—are key game changers.

The average annual cost of a general business licence for enterprises such as car washes, retail shops, salons, and barbershops in Uasin Gishu stands at Ksh25,443, the third lowest nationally. Machakos records the lowest average cost at Ksh24,100. Despite this, Uasin Gishu outperforms most counties, ranking just behind Nakuru in offering strong business support services and incentives, including an SME fund, industrial parks, and capacity-building programs. The county also scores highly in infrastructure indicators such as roads, water, electricity, and incubation hubs.

Meanwhile, Nairobi has the highest general trade licence cost at Ksh85,000, but improved its overall standing to third place, up from tenth in 2024, thanks to better performance in other key indicators.

Kiambu, Murang’a, Kisumu, and Nyeri complete the top 10.

On the other hand, Kisii, Kakamega, and Nyandarua ranked as the worst counties for small businesses, respectively. The three performed lowest in the infrastructure category, while Kakamega and Kisii also scored below 5% in the business support and incentives ranking.

Read more of the ranking here and check the full report here.

Uhuru, Ndegwa Families Gain Ksh12.4 Billion as NCBA Shares Surge on Buyout Buzz

The families of retired President Uhuru Kenyatta and former Central Bank governor Philip Ndegwa have gained a combined Ksh12.4 billion in paper wealth within five days after NCBA Group’s share price surged 38.5 percent following reports of a potential buyout by Africa’s largest bank, Standard Bank Group, according to Business Daily. NCBA’s stock rose from Ksh69.50 to Ksh96.25 at the Nairobi Securities Exchange (NSE), lifting the lender’s market valuation by Ksh44.1 billion to Ksh158.5 billion. The Kenyattas, who hold 13.2 percent through Enke Investments, saw their stake’s value grow by Ksh5.82 billion, while the Ndegwa family’s 14.94 percent shareholding through First Chartered Securities gained Ksh6.58 billion.

The rally followed a Bloomberg report indicating that Standard Bank’s Kenyan unit, Stanbic Holdings, had been instructed to begin buyout talks with NCBA. The deal, if successful, would create a banking giant with assets of about Ksh1.1 trillion, making it Kenya’s third-largest lender after Equity and KCB. Analysts say investors are betting on a takeover premium, fueling heightened trading volumes—up 5.3 times in a week. However, they caution that the share rally is speculative as Standard Bank has termed the reports “market speculation.” A successful buyout would mark a major shift in Kenya’s banking landscape, bringing one of the country’s most prominent local institutions under foreign ownership.

Lecturers Reject Ksh3.1 Billion Pay Offer as Varsity Strike Hits Six Weeks

Public university lecturers have rejected the proposed Ksh3.1 billion pay offer by the Salaries and Remuneration Commission (SRC) and the Inter-Public Universities Councils Consultative Forum (IPUCCF) for the 2025–2029 Collective Bargaining Agreement, according to the Daily Nation. The Universities Academic Staff Union (UASU) termed the proposal “unacceptable and unrealistic” as the nationwide strike entered its sixth week. In a letter to the SRC, UASU said it “completely rejects” the counter-offer based on the SRC’s salary guidelines, arguing that it violates the principle of fair remuneration and fails to meet constitutional standards for attracting and retaining skilled professionals in the public sector.

The lecturers also accused the SRC of imposing non-negotiable final positions, contrary to Article 41(5) of the Constitution, which protects the right to collective bargaining. UASU Secretary-General Dr Constantine Wasonga said the counter-offer and the accompanying guidelines undermine genuine negotiations by setting fixed terms rather than offering room for discussion. The union maintains that the strike will continue until a fair and realistic compensation framework is reached.

Former Health CS James Macharia Appointed Sidian Bank Chairman

Former Health Cabinet Secretary James Macharia has been appointed the new Chairman of Sidian Bank, succeeding Centum Investments CEO James Mworia, who has held the role since 2014, according to Capital FM. Mworia will remain on the bank’s board. Macharia brings extensive experience in accountancy, consultancy, financial management, and commercial banking, having begun his career at Deloitte’s Tax Consultancy Division in London before joining Standard Chartered Bank and later the African Banking Corporation, where he served as Managing Director for its Zambian and Tanzanian subsidiaries.

Macharia also previously led NIC Bank as Group Managing Director, overseeing its regional expansion into Tanzania and Uganda, before joining the public service in 2013 as Cabinet Secretary for Health, Transport, Infrastructure, Housing, and Public Works. He holds a Bachelor of Commerce degree from the University of Nairobi and an MBA from Henley Management College (UK). Sidian Bank also announced the appointment of Prof. Paul Gachanja, an Associate Professor of Economics at Kenyatta University, and Apollo Ong’ara, a Financial Consultant and Managing Partner at Baker Tilly, as new board members.

Nairobi Expressway Operator Posts Ksh1.84 Billion Loss Despite Surge in Traffic

The Nairobi Expressway operator, Moja Expressway, recorded a net loss of Ksh1.84 billion in the six months to December, as toll revenues failed to cover debt and operating costs, according to Business Daily. Treasury data shows motorists paid Ksh7.16 billion in toll fees against Ksh9 billion in expenses, including loan repayments and maintenance. This is higher than the Ksh1.2 billion loss posted in the year to June 2024, even as daily traffic jumped from 11,000 to 67,298 vehicles.

The losses highlight the financial strain of Kenya’s first major public-private partnership (PPP) project. The Kenya National Highways Authority (KeNHA) has urged the operator to lower toll fees after inflation dropped and the shilling strengthened, but rates remain unchanged. Motorists currently pay between Ksh170 and Ksh500, with prices still pegged to an exchange rate of Ksh143.75 per dollar. Analysts say the company’s reluctance to reduce fees reflects a “rocket-and-feather” approach, where prices rise fast but drop slowly.

Kisumu Port Records Cargo Boom as Ugandan Vessel Makes Maiden Call

Kisumu Port has continued its steady growth in maritime activity, marked by the arrival of the Ugandan cargo vessel Mv Mpungu, a 96-meter-long ship operated by Grindrod Logistics Africa under East Africa Marine Transport. According to The Standard, the vessel’s maiden call at the port signals a new chapter for inland shipping across East Africa. Port Manager Patrick Makau said cargo volumes have risen from 281,000 metric tonnes last year to 324,000 metric tonnes in 2025, with projections to hit 400,000 metric tonnes by year-end.

Makau attributed the growth to infrastructure upgrades and increased regional trade. The ship’s captain, Obedi Nkongoki, commended Kisumu’s hospitality and strategic role in unlocking trade potential around Lake Victoria. With six vessels now operating through Kisumu Port, officials say the hub is poised to become a major player in East Africa’s maritime economy.

Insurance Costs Set to Rise as Regulator Proposes Higher Licensing Fees

Households and businesses could soon pay more for insurance as the Insurance Regulatory Authority (IRA) moves to raise annual license and operating fees for insurers, brokers, agents, and other intermediaries for the first time since 1995. According to Business Daily, the proposed changes will see license fees for insurance companies rise 3.3 times to Ksh500,000, while those for reinsurers will triple to Ksh750,000. Intermediaries such as brokers and medical insurance providers will pay Ksh100,000 annually—up tenfold—while individual agents’ fees will increase five times to Ksh5,000.

The Treasury says the hike reflects inflation and the expanded regulatory scope of the IRA, noting that the number of licensed players has grown from 529 to nearly 15,000 since the last adjustment. However, the higher fees are expected to raise operational costs, which insurers may pass on to policyholders, making premiums more expensive. The proposed structure would also make Kenya’s insurance market costlier than neighbouring Uganda and Tanzania, where agents and brokers currently pay much lower fees.

Makini Schools Owner to Set Up University in Kenya

The owner of Makini Schools, South Africa’s ADvTECH Group, plans to establish a university in Kenya under its Rosebank University brand, marking its entry into the country’s tertiary education market. According to Business Daily, the move is part of the multinational’s strategy to expand across Kenya, Ethiopia, Ghana, and Botswana with premium and mid-tier institutions. ADvTECH, which acquired Makini Schools in 2018 for nearly Ksh1 billion, is also rebranding the recently purchased Regis Runda Academy to Makini and expanding Crawford International School in Nairobi.

The planned Rosebank University Kenya campus will charge annual fees ranging between Ksh323,000 and Ksh516,000, similar to its newly opened campus in Accra, Ghana. The university will offer diploma, undergraduate, and postgraduate programs in fields such as business, IT, hospitality, and digital marketing. Establishing a university in Kenya will give ADvTECH a full presence across all education levels, intensifying competition with private universities like Daystar, Strathmore, and USIU-Africa amid rising demand for private education.

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