Business owners in Kisumu’s Central Business District are voicing concerns about skyrocketing rental costs that threaten the survival of small and medium enterprises (SMEs). Many traders say high rents are depleting their capital and making it difficult to maintain operations.
New businesses are particularly affected, with many closing shortly after opening due to financial strain. Even established businesses are struggling, as rental fees outpace daily profits. Traders are urging landlords to reconsider their pricing strategies.
A recent survey highlights that excessive rents have driven many businesses out of Kisumu’s prime commercial areas. “The high rents are unsustainable,” said trader John Odhiambo. “Investors struggle to stay afloat and end up closing due to financial instability.” Phone vendor Linda Atieno added that her rent increased from Sh30,000 to Sh35,000 in three years, forcing her to raise product prices to cover costs.
The real estate market in Kisumu is also contributing to the issue. An anonymous real estate agent noted that high demand for rental properties drives up prices, exacerbated by limited land availability and speculative buying.
Traders have complained to the Kenya National Chamber of Commerce and Industry (KNCCI) but have yet to see a resolution. KNCCI Nyanza branch Chairman Israel Agina acknowledged the issue but noted the limited influence the chamber has over rent prices in a free-market economy. However, he indicated that KNCCI is working to engage landlords and explore solutions.
Some traders are calling for rent controls to ease their burden, though concerns remain about balancing landlord interests and maintaining a healthy investment environment. Meanwhile, many businesses are delaying payments, relocating, or negotiating better terms with landlords in hopes of finding relief.