Kenya has experienced multiple economic challenges since the start of 2025, which have caused several businesses to close and others to stop operating due to high costs and regulatory changes.
Why are foreign companies exiting Kenyan market? The Federation of Kenya Employers (FKE) noted that tax policies, international geopolitical events, and climate change are to blame for Kenya’s rising business expenses. “The Kenyan private sector faces challenges due to high capital costs, influenced by factors like interest rates, inflation, market conditions, and government policies. Every day we receive notifications from employers on their intent to declare redundancy,” FKE stated. Kenyans faced in 2025 FX Pesa lead market analyst Rufas Kamau told TUKO.co.ke that multinationals are forced to exit the local market due to unpredictable policies. “A nation with stable currency, taxation, and economic growth is a haven for the ultra-wealthy. However, the current administration’s actions are slowing economic development by drastically altering tax policy,” Kamau explained.
Which companies exited the Kenyan market in 2025? 1. CMC Motors After 40 years of operating in the region, CMC Motors Group announced on January 17, 2025, that it will be ceasing its operations in Kenya, Tanzania, and Uganda. The group claimed that its operations were unsustainable due to growing operating expenses. “CMC Motors Group has announced its decision to gradually wind down operations in Kenya, Tanzania and Uganda in full compliance with local regulations and distributorship agreements. This decision follows a thorough evaluation of the business in light of sustained market challenges, including economic pressures, currency depreciation and rising operational costs,” it announced. CMC Motors quit the local market. 2. Al-Habib Pakistani bank Bank Al-Habib formally left Kenya on May 15, 2025, when its Nairobi representative office closed.
The Central Bank of Kenya (CBK) announced that this decision was made following a strategic assessment by the bank to optimise its international activities. With effect from May 15, 2025, the CBK formally revoked the bank’s operating authority. “In accordance with Section 43 of the Banking Act, the Central Bank of Kenya (CBK) declares that Bank Al-Habib Ltd. (BAHL) of Pakistan is no longer authorised to run the BAHL Representative Office in Kenya,” the CBK stated. 3. Caltex House Service Station Limited According to a government announcement released on June 5, 2025, Caltex House Service Station Limited would be disbanded after providing decades of service to Kenyan drivers. Caltex House Service Station Limited (Company No. C. 12484) will be removed from the official register unless objections are lodged, according to the announcement made by the Registrar of Companies under Gazette Notice No. 7420. Hiram Gachugi, Deputy Registrar of Companies, issued the notice in accordance with Section 894(3) of the Companies Act (Cap. 486). 4. DT Dobie Many people speculated about the reasons behind DT Dobie’s liquidation in Kenya after decades of operation.
CFAO Group conducted business in Kenya through LOXEA Kenya, DT Dobie, and CFAO Mobility Kenya (previously CFAO Motors Kenya). Due to the company’s decision to restructure its operations, DT Dobie will no longer operate as a brand in Kenya. DT Dobie’s business and heritage remain under CFAO Motors Kenya, even though it is legally winding up through liquidation. “For customers, this transition means greater convenience, consistency, and access to a broader range of mobility solutions all under one trusted name,” it stated. Which other firms exited Kenya’s local market in 2024? On Friday, December 20, 2024, Ukwala Supermarket Ltd wrapped up its liquidation process. This came after it accumulated debts valued at over KSh 1 billion against KSh 19 million assets. After being placed under administration, the e-commerce company Copia stopped operating in six towns in June 2024 In a notice, the company said that it had halted orders in Meru, Embu, Kericho, Eldoret, Machakos, and Naivasha.
Japhet Ruto is an award-winning TUKO.co.ke journalist with nine years of working experience in the media industry. Ruto graduated from Moi University in 2015 with a Bachelor’s Degree in Communication and Journalism. He is a Business & Tech Editor. Ruto won the 2019 BAKE Awards’ Agriculture Blog of the Year. He was named TUKO.co.ke’s best current affairs editor in 2020 and 2021. In 2022, 2023 and 2024, he was the best business editor. Google News Initiative Training on Advance Digital Reporting, Fighting Misinformation, and Experimenting with New Formats (2024). Email: japhet.ruto@tuko.co.ke. Politics 11 minutes ago EXCLUSIVE Machakos needy woman overwhelmed raising late sisters’ kid, says family abandoned them Family 13 minutes ago Producer Wuod Fibi declares he’ll run for MCA seat, claims God called him to lead: “Ground iko sawa” Celebrities 26 minutes ago Political analyst unpacks why Musalia Mudavadi’s call for a 2027 referendum could backfire Analysis 46 minutes ago Muthee Kiengei’s political comments divide netizens: “Hatupangwingwi” Celebrities 50 minutes ago AD TRENDING List of top 10 most attractive cities in Africa in December 2025 ranking Business and Economy 9 days ago Mali, Burkina Faso impose travel ban on US citizens in visa retaliation move Business and Economy 2 hours ago List of 42 additional CBK-licensed digital credit providers Business and Economy a day ago AD TOP STORIES American woman seeks help to find Kenyan biological dad after 26 years: “He was a donor” Family 20 hours ago Vera Sidika, Pritty Vishy: 5 Celebs who have undergone cosmetic surgery in 2025 Celebrities 16 hours ago American woman searching for biological Kenyan dad learns he died years ago, plans to meet siblings Family 7 hours ago 8 Kenyans who touched their parents’ lives with fancy gifts in 2025: “Tokens of appreciation” Family 18 hours ago Fardosa, Patello na Dee: 5 viral sensations of 2025 Celebrities 19 hours ago AD 0 Home Business and Economy Economy ECONOMY Infotrak Survey Shows Unemployment, 6 Other Financial Challenges Kenyans Faced in 2025 Published 31 Dec 2025 at 10:06 AM By Japhet Ruto reviewed by Asher Omondi 3 min read Infotrak released a new survey on Tuesday, December 30, 2025, highlighting the main financial challenges Kenyans endured this year The research firm interviewed 1,000 respondents, and unemployment emerged as the biggest problem among citizens Another concern was rising education costs, with parents struggling to educate their children following the adoption of a new funding model TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends. A new survey by Infotrak has revealed seven financial challenges that Kenyans faced in 2025. President William Ruto failed to tackle the unemployment crisis. Infotrak interviewed 1,000 respondents, and unemployment emerged as the biggest challenge facing citizens at 26%. Which financial challenges did Kenyans face in 2025? Amid mounting economic pressures, respondents noted that the high food prices at 25% contributed the second-highest to the financial strain in households nationwide. Other problems were school fees (17%), low wages (14%), healthcare costs (8%), rent/housing (5%), and debt (5%), with half of Kenyans reporting increased anxiety. “From unemployment and high food prices to rising education costs, financial pressure has reshaped the everyday Kenyan’s life. The latest Infotrak survey shows that the effects of economic stress are being felt across households and regions. Half of Kenyans report increased anxiety,” the firm stated. “Economic pressure is widespread, but specific burdens vary by demographic. For instance, unemployment is the primary concern for youth aged 18-26, while school fees have become a dominant concern for those over the age of 55,” it added. How did Kenyan households cope? As a result, the majority of households resorted to coping strategies, including looking for extra money (39%) and reducing non-essential spending (26%). According to 22% of respondents, borrowing money from friends and family was the next most important option. A comparable percentage relied on local services like food banks and shelters, while 15% said they relied on credit cards or loans. The research indicated that 11% depended on food rations, which is alarming. Kenyans noted that the cost of food soared. Photo: Naivas Supermarket. Source: Twitter What contributed to the high cost of living in Kenya? The perceived causes of the high cost of living were also investigated in the poll. Government policies (16%), taxation (26%), and corruption (31%) were listed as the top causes.
By Japhet Ruto
