Know your numbers
Most owner-operated businesses in Kenya don't have a numbers problem — they have a visibility problem. Once you see real margin, real cash conversion, and where revenue is concentrated, the next move becomes obvious.
What this step covers
- Pin down true unit economics: contribution margin per product, channel, or customer.
- Calculate break-even, runway, and the cash-flow gap you're financing personally.
- Spot customer-concentration and supplier-concentration risk before a lender does.
The detail
The five numbers every Kenyan SME owner should know weekly
- Cash in the bank (today, vs same day last week).
- Receivables outstanding — who owes you, how old is each bucket?
- Gross margin per product / service line (revenue minus direct cost).
- Customer concentration — % of revenue from your top 3 customers.
- Weekly burn — total cash going out, fixed + variable.
Hidden costs that crush margin
- Card / M-Pesa fees (1.5–3.5%) that aren't separated in your books.
- Free deliveries you bundled to win the customer.
- Spoilage, shrinkage, theft in stock-heavy businesses (typically 3–8%).
- Your own time, unpaid — value it at the market rate for the role you're playing.
If one customer accounts for more than 25% of revenue, you don't own a business — you own a job that customer can fire you from. Lenders apply a steep discount, and acquirers walk away.
Move bookkeeping from a notebook to a cloud tool (Zoho Books, QuickBooks, Wave) this quarter. The tax savings alone usually pay for the subscription in month one.
Frequently asked
Do I need an accountant to know my numbers?+
No — you need a system. An accountant helps once you have clean monthly management accounts coming out of it.
How often should I reconcile the bank?+
Weekly. Monthly is too slow to catch fraud, errors, or the customer who never actually paid.
What software do you recommend?+
Zoho Books for most Kenyan SMEs (KES 1,500–4,500/month, integrates with M-Pesa via add-ons). QuickBooks Online for businesses with international transactions.
The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.
