By 8 o’clock on a Thursday morning, most conversations in Nairobi revolve around traffic, deadlines and the first cup of coffee. At Strathmore University, however, the discussion was far more ambitious. The question on the table was how Kenya can build an economy capable of creating jobs, attracting investment and sustaining long-term prosperity.

Hosted by the Strathmore Centre for Value Investing (SCVI) in partnership with Capital FM and I&M Capital, the Business, Investment & Growth Townhall brought together economists, business leaders, tax experts, investment professionals and students to examine the country’s economic outlook. While perspectives differed, it was clear that Kenya possesses enormous potential, but unlocking it will require deliberate policies, informed investment and greater financial literacy.

Capital FM, Managing Director, Symon Bargurei, observed that the media has a critical role to play in economic development. Beyond reporting headlines, he argued, the media serves as a catalyst for growth by shining a spotlight on innovation, entrepreneurship and businesses creating value.

Equally important, he said, “Sustained collaboration between academia and industry is key to unlock investment opportunities, strengthen enterprises and accelerate job creation.”

The Townhall had two panel sessions on Driving Kenya’s Economic Future, moderated by Maalika Kazia and June Gachui. The first panel explored what will determine the country’s competitiveness in the years ahead.

For I&M Capital Chief Executive Officer Silas Mutuku, successful investing extends well beyond financial statements.

“Investors need to look into corporate governance strategically to determine which companies to invest in,” he said. “ESG is also key when thinking of investing in a company. Look at the long term, not the short term.”

He encouraged young people to begin investing early, while emphasising that affordable electricity remains one of the country’s greatest opportunities to stimulate manufacturing and attract investment.

“We need to make electricity cheap to catalyse manufacturing and investment in the country.”

Dr. Mercy Kano, a finance lecturer at Strathmore University, shifted the conversation from boardrooms to households. She argued that financial literacy remains one of Kenya’s greatest development challenges, particularly within agriculture. Rather than viewing farming as a last resort, she called for greater investment in value addition and innovation to make the sector attractive to young people.

She challenged aspiring entrepreneurs to understand their strengths, identify genuine market problems and carefully determine why they need financing before taking on debt.

“The greatest impediment for young people, especially students, is doing something because everybody is doing it. Do your research, understand your skill set and identify the problem you want to solve,” she advised.

At the macroeconomic level, Mentoria Economics Chief Economist, Ken Gichinga, urged Kenyans to look beyond headline statistics.

“GDP numbers were positive, but you have to be very careful how you interpret GDP,” he cautioned. Despite current economic pressures, Gichinga maintained that Kenya’s fundamentals remain strong.

“Kenya is very strategically located geographically, with a young and hungry labour force and a median age of 19.”

However, he warned that the country’s debt burden continues to constrain development. “As we go into the election period, we need to look at who can manage debt effectively.” He also called for greater investment in research and proposed reducing VAT from 16 to 8 per cent to cushion both businesses and consumers.

The second panel shifted attention from the macroeconomy to the practical realities facing businesses seeking to grow.

Head of Investment Advisory at I&M Capital, Sameer Raja, identified financing as one of the country’s biggest structural challenges.

“Our biggest challenge is the disparity between large corporations and SMEs. SMEs drive our economy, but they struggle to access financing because they lack collateral,” said Raja

Even so, he remained optimistic, pointing to Kenya’s sophisticated financial sector, rapid adoption of technology and steadily growing local investment culture. Expanding corporate debt markets and improving financing options for SMEs, he argued, would unlock significant economic growth.

That sentiment was echoed by Senior Portfolio Manager at Nabo Capital, Charles Miano, who called for a rethinking of traditional lending models. Banks and capital markets, he said, must work together to provide financing solutions that reflect the realities of SMEs, which account for roughly 40 percent of Kenya’s business sector.

He also identified policy uncertainty as a persistent obstacle to investment, urging government to provide stable, long-term policies, clear outstanding pending bills and create an enabling environment for businesses. Affordable green energy, he added, could become one of Kenya’s strongest competitive advantages.

Tax policy completed the conversation. Associate Director at KPMG East Africa, Onesmus Kiama,  described balancing tax revenue with investment attraction as one of the government’s most delicate responsibilities.

While acknowledging progress in digitising tax administration, he argued that predictability matters just as much as efficiency. Simplified tax systems, consistent incentives and regulatory certainty, he said, would give investors greater confidence to commit long-term capital.

“Government should ensure there are consistent tax incentives for businesses and simplify the tax system to encourage investors,” said Kiama.

Welcoming participants before the panel sessions, SCVI Director, Dr. Edwin Obonyo, underscored the Centre’s mission of advancing responsible investing through research, education and engagement with industry. He noted that fora such as the town hall are designed to bridge the gap between academia and the marketplace, ensuring that ideas move beyond lecture halls into boardrooms, businesses and public policy.

If there was one unmistakable takeaway from the morning, it was that Kenya’s economic future will not be determined by a single budget speech, tax measure or investment fund. It will be shaped by the confidence citizens, businesses and investors have in the country’s institutions, policies and people. Building that confidence demands collaboration across government, academia, industry and the media, precisely the kind of conversation that unfolded at Strathmore University.

Article written by Stephen Wakhu