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For a while now, I’ve lived in perpetual dismay over the state of our politics, which has & continues to serve as a relentless reminder of the qualities I find abrasive, selfish, and, in many cases, morally reprehensible in humanity. I resorted to the belief that fixating excessively on our politicians only perpetuates failure in our lives and instead choose purpose & family… Yet, we cannot escape the far-reaching consequences of poor decision-making in this political quagmire we call home. It is an unfortunate reality we all must confront.
On June 14th, 2023, our Members of Parliament voted in favor of the Finance Bill 2023, setting the stage for its review by the committee of the whole House. One of the bill’s proposals, soon to become law, is the mandatory use of the Electronic Tax Invoice Management System (ETIMS) by small businesses for recording sales, granting the Kenya Revenue Authority (KRA) real-time access to their transactions for tax purposes. Industry experts argue that this requirement could effectively exclude millions of non-VAT registered informal traders who do not qualify, potentially leading to their exclusion from the supply chain as suppliers begin to avoid non-compliant enterprises.
Industry experts have argued that the stipulation could effectively lock out millions of non-VAT registration qualifying informal traders & could keep many away more the supply chain as suppliers move to shun non-compliant enterprises.
These events further emphasize the critical need for community-driven infrastructure to support the micro-retail sector of our economy. Within this sector, the intensely competitive environment severely constrains individual growth opportunities. This explains why, despite micro-retailers collectively accounting for over 77% of all consumer goods sold in Kenya (90% across Africa), most individual enterprises struggle to achieve break-even. While there are various contributing factors, the fundamental issue lies in the sheer volume of competitors coupled with their virtually nonexistent collective bargaining power. This combination creates a breeding ground for exploitation, resulting in costly credit, meager profit margins, reliance on intermediaries, rights violations, substandard working conditions, limited job security, and the imposition of legal constraints, as exemplified by recent developments.
I am convinced, now more than ever of the prudence of our work as WymBee. My intention has always been to innovate an efficient and circular supply chain system that guarantee’s growth to its participants while establishing the ground-work for an eventually lucrative exit plan.
In 2021 alone, Kenya’s informal sector, encompassing retailers, hawkers, and various service providers, employed over 15.3 million people. However, a comparative analysis of SASRA’s reports reveals a stark contrast, with just over 300,000 registered chamas (localized cooperatives) in the country. It’s important to note that these cooperatives are not specifically established to foster enterprise cooperation, and most of them function as Rotating and Savings Credit Associations for family-run initiatives. To provide context, mainstream retailers, who control a mere 23% of the market, have successfully forged strategic partnerships based on symbiosis and synergy, creating lucrative opportunities for the collaborating parties. Witnessing such ingenuity and the pursuit of growth and sustainability despite overwhelming odds is truly remarkable and serves as a testament to the wealth of opportunities available to those who embrace the spirit of mutual growth in the pursuit of an exceptional economic unicorn.
I am further fueled by the evident demand and strong desire for the work we are undertaking, recognizing that collaborative action for sustainable business is destined to become mainstream within the next decade. Over the past three years, national headlines have shared inspiring stories of boda-boda riders in various regions, such as Nanyuki, Vihiga, Muranga, and Nakuru coming together to form SACCOs, pooling their resources, and venturing into diverse enterprises, including real estate. This growing trend reflects a broader realization among people across the country about the value of enterprise collaboration as a strategic response to market pressures like inflation, soaring logistics costs, overhead expenses, currency fluctuations, and even political disruptions.
And so while disgusted by the legislative proposals and the audacity of their implications, I find warmth in the resilience and determination of our people. I am excited by what we’re building, collaborative infrastructure for Africa’s MSMEs. And while our GTM is currently only focussed on providing deadstock-relief to our target market, our dream is way bigger & our work at Wymbee is more relevant than ever. It is a beacon of hope, providing the tools, knowledge, and support needed to empower businesses to work together build a brighter, sustainable future. Together, we can challenge the status quo, dismantle barriers, and create an ecosystem that nurtures and uplifts our second-largest economic player, the micro-retailer sector.
