Financial freedom driving more Kenyan women into business

WOMEN in Kenya are outshining their regional peers in entrepreneurial spirit, with nine out of 10 considering starting or running their own businesses, a new survey shows.

Compared to the region, 93 per cent of Kenyan women consider starting or running their own business, way above the Eastern Europe, the Middle East, and Africa (EEMEA) average of 51 per cent. According to the Mastercard survey, older generations in Kenya, including Baby Boomers (93 per cent) and Gen X (90 per cent), are slightly more likely to view themselves as entrepreneurs compared to the 85 per cent of Gen Z, and 89 per cent of Millennials.

This trend is in contrast to the EEMEA region, where younger women are typically more entrepreneurial.Mastercard executive vice president for services in Eastern Europe, the Middle East, and Africa, Selin Bahadirli, says that the driving forces behind this wave of entrepreneurship are financial independence, flexible working hours, and the pursuit of personal dreams.

“The entrepreneurial spirit among women is strong and growing, with younger generations leading the way. With access to the right financial tools, mentorship, and digital resources, women entrepreneurs can unlock new business opportunities, drive innovation, and contribute significantly to economic development,” said Bahadirli.

Among women founders in Kenya, 45 per cent started their business to follow their dream, while 41per cent sought better work-life flexibility and balance—figures closely aligned with broader trends across EEMEA.

The survey further shows that Kenyan women are not only aspiring to start businesses but are also actively participating in side hustles, with 76 per cent of women engaged in income-generating activities outside their main job, highlighting a strong entrepreneurial drive across all generations.

Agriculture remains the most popular sector, attracting 35 per cent of women entrepreneurs. Business services follow closely at 30 per cent, while the food and drink industry accounts for 22 per cent of women-led enterprises.

Optimism among women entrepreneurs in Kenya is also notably high. Nearly half (49 per cent) expect their businesses to grow by over 50 per cent in the next five years, compared to just 39 per cent of men. MastercardSenior Vice President and Country Manager for East Africa and Indian Ocean Islands Shehryar Ali, notes that the lack of funding (53 per cent) remains the biggest challenge, followed by lack of financial resources (44 per cent) and the difficulty in securing startup capital (34 per cent).

Among women who have already started a business, 63 per cent say finding initial funding was their biggest challenge.

The most common reason for women not starting a business, despite wanting to, is not having enough money to launch (82 per cent).

Many women also struggle with building sustainable businesses, with nearly half (47 per cent) unsure of how to scale, a figure significantly higher than the EEMEA average of 31 per cent.

Four in 10 (41per cent) also lack the know-how to develop a business plan. These figures highlight the need for structured support, mentorship, and training. In particular, Gen X women ( 61 per cent) expressed a strong need for entrepreneurial networks, recognizing the value of mentorship and peer learning.

Additionally, 48 per cent of women believe better training in business skills would help, while 26per cent feel that entrepreneurship should be introduced as a career path at schools and universities to encourage more women to enter the space.

Kenyan women entrepreneurs are embracing AI to drive efficiency, with 65per cent regularly using AI tools in their business and 66 per cent reporting significant time and cost savings.

However, 57 per cent of business owners remain cautious about expansion due to the rising risk of fraud, with 58 per cent having been targeted by a fraudster, underlining the need for robust cybersecurity education and protection.

49 per cent are more likely than men (37 per cent) to be uncertain about how to protect their business from cyberattacks, emphasising the need for education (92 per cent) to secure their business.