Uganda has emerged as the preferred market for Kenyan small and medium enterprises seeking to grow beyond the local market, according to the 2018 Top 100 survey by Nation Media Group and KPMG.
The survey found that 78 per cent of local SMEs had opened branches in Uganda. Tanzania followed at 59 per cent, while 41 per cent of the businesses said they were operating in Rwanda.
Respondents pointed to easier movement of goods between Kenya and Uganda, political stability and support for trade from the two governments as the main reasons for choosing the neighbouring country.
Interest in Uganda appears likely to remain strong. The survey said 61 per cent of the SMEs questioned were willing to expand there in the next few years.
“From 2009, we have consistently seen that most SMEs are inclined to set up their first operations in Uganda then Tanzania. From an East African perspective, Uganda remains our biggest business partner,” Maurice Gachuhi, senior manager at KPMG Kenya, said.
The Top 100 survey, launched in 2007, is a joint initiative by Nation Media Group and KPMG. It identifies and recognises the country’s fastest-growing medium-sized companies and highlights outstanding entrepreneurs.
Gachuhi made the remarks in Nairobi during a pre-awards conference held ahead of the 11th Top 100 gala dinner scheduled for Friday.
