Brace for More Shocks: Israel–Iran Conflict Pushes Businesses to the Brink as Current Prices May Become Unsustainable

Kenyan women entrepreneurs are increasingly feeling the strain of rising business costs, as the ongoing Israel–Iran conflict continues to disrupt global supply chains and drive up importation expenses.

Industry players say businesses that rely on raw materials and finished goods from the Middle East and other affected regions are among the hardest hit. The cost of shipping, insurance and sourcing has surged amid the geopolitical tensions, placing significant pressure on small and medium-sized enterprises (SMEs), many of which are women-led and operate on limited capital.

Speaking during the Topspin Awards, an event celebrating outstanding women across various sectors, Dream Credit Limited founder Lilian Gachoki warned that the situation could deteriorate further if global instability persists.

“We are already seeing the ripple effects. The cost of doing business has risen sharply, and for many small enterprises, especially those run by women, it is becoming increasingly difficult to sustain operations,” she said.

She urged entrepreneurs to prepare for prolonged uncertainty, noting that the global business environment remains fragile.

“As entrepreneurs, we must brace for further shocks. The global environment remains unpredictable and unless stability is restored, the cost pressures will persist. It calls for resilience and a rethink of business strategies,” Gachoki added.

Across different sectors, entrepreneurs are already grappling with shrinking profit margins. Rose Ntong’ondu, founder of Make-up by Rose, said the rising cost of imported products is taking a toll on her business.

“The prices of imported beauty products and raw materials have nearly doubled in some instances. What used to be profitable is now barely sustainable. We are left with the difficult choice of absorbing the losses or increasing prices and risking customers,” she explained.

She cautioned that maintaining current prices may soon become impossible. 

“At some point, businesses will have to adjust prices. Operating at a loss is not sustainable,” Ntong’ondu noted.

Stakeholders now warn that if the trend continues, consumers are likely to feel the impact as businesses begin to pass on the increased costs—potentially fueling inflation in the local market.

Beyond rising operational costs, delayed payments from government institutions have compounded the challenges for many entrepreneurs, particularly suppliers to the public sector. Gachoki called for urgent settlement of pending bills to ease the financial burden.

“Clearing pending bills would inject much-needed liquidity into the economy and help businesses meet their obligations, including paying employees and servicing loans,” she said.

Despite the challenges, some industry players say the shifting economic landscape could present new opportunities. Abdikheir Dubor of Adval Properties Ltd noted that falling property prices in certain segments may offer strategic entry points for investors.

“In every crisis, there is opportunity. The current market shifts could favour investors who are strategic and well-informed. It may be an ideal time to acquire property at more competitive prices,” he said.

Dubor encouraged entrepreneurs to diversify their investments as a way of managing risk and strengthening financial resilience.

Meanwhile, leaders in training and engineering sectors emphasised the importance of innovation, adaptability and continuous skills development. Kaive International Training College CEO Anita Cheptekei Juma urged entrepreneurs to remain proactive despite the tough environment.

“We should not criticise the government all the time; we also have a role to play in improving our businesses. I encourage my colleagues to stay focused and resilient in pursuit of their goals,” she said.

Jecinta Njeri of Kemuma Engineering Systems echoed similar sentiments, calling on women to embrace entrepreneurship with confidence, even in traditionally male-dominated industries.

“Women should not hold themselves back. We have the ability to build strong businesses that can employ others. Start where you are, remain disciplined, and grow step by step. Success takes time,” she said.

She added that mentorship, networking and continuous learning remain key pillars in helping women navigate challenges and scale their enterprises in an increasingly uncertain economic climate.