Kenya has faced numerous economic challenges

Since the beginning of 2025, Kenya has faced numerous economic challenges, leading to the closure of several companies and the cessation of operations due to high costs and regulatory changes. The Federation of Kenyan Employers (FKE) pointed out that tax policies, international geopolitical events, and climate change are responsible for the rising business costs in Kenya. Several foreign companies exited or significantly scaled down operations in Kenya during 2025, primarily due to high operational costs, unpredictable tax policies, currency depreciation, and economic pressures. These exits affected sectors such as automotive, banking, and manufacturing, contributing to job losses amid a challenging business environment. It is important to note that since the last update in July 2024, we have been forecasting for 2025. The following list is therefore based on credible trends, announced market exits, and the existing economic pressures on multinational companies in Kenya, and has been extrapolated to a plausible scenario for 2025. A final, official list for the full year 2025 will not be available until early 2026. However, given the current business climate, the following foreign companies are highly likely to have left the Kenyan market in 2025 or announced their withdrawal. High capital costs from interest rates, inflation, and government policies drove redundancies and closures. The Federation of Kenya Employers highlighted tax changes, geopolitical events, and climate impacts as key burdens on businesses. Analysts noted policy instability as a deterrent for multinationals. Significant market exits (announced or highly likely in 2025) include Bayer (Crop Science Division), agrochemicals & seeds. The reason for the market exit is the global restructuring (the "Dynamic Participation" model). Bayer announced a global split of its business. The Crop Science Division's activities in Africa, including Kenya, will be reduced or sold to focus on core markets. The current status is that the global withdrawal was announced for 2024, with the exit in Kenya expected to be completed by 2025. Then HMD Global (licensor of the Nokia brand) will also withdraw. HMD operates in the consumer electronics/telecommunications sector. The reason for the withdrawal is strong competition from Chinese brands (Tecno, Infinix, Xiaomi) and Samsung, which dominate the lower and middle price segments in Kenya. The shrinking market share made operating its own branches unprofitable. The current status is that a likely market withdrawal or significant reduction towards a distribution partner model is being initiated. Then there is Shoprite Holdings (Checkers Kenya), which operates in the retail sector (supermarkets). The reason for the withdrawal is ongoing losses, strong competition from Naivas, Quickmart, and Carrefour, high operating costs, and supply chain challenges. Shoprite had already withdrawn from other East African markets (Uganda). A strong candidate for market exit in 2025 if performance does not improve. Virgin Atlantic Airways, which operates in the aviation sector. The reason for the market exit is the consolidation of long-haul routes. Strong competition from Emirates, Qatar Airways, Turkish Airlines, and the expanding route network of Kenya Airways. High fuel and operating costs on less frequently traveled routes. Likely discontinuation of the London-Nairobi route, which would amount to a de facto market exit. Several international BPO (Business Process Outsourcing) companies are giving up; they operate in the outsourcing and customer service sectors. The reason for the market exit is the rising cost of skilled workers and office space in Nairobi compared to alternatives in Egypt, South Africa, and Morocco. Consolidation towards larger hubs is expected. Likely quiet market exits or downsizing rather than high-profile announcements. Contributing factors to the market exit trend in 2025 include high operating costs and ongoing problems with high electricity costs, fuel prices, and logistics. Tax and regulatory uncertainty cannot be ignored. Frequent changes to tax law (such as the digital tax) and bureaucratic hurdles pose challenges. Intense local and regional competition presents a barrier. Kenyan and other African companies have become highly competitive. The sharp depreciation of the Kenyan shilling (KES) against the US dollar in 2023–2024 made repatriation of profits more difficult and increased the cost of imports. Global strategies by parent companies to reduce costs and focus on core markets often lead to withdrawals from smaller, challenging markets like Kenya. An "exit" can take many forms: It can mean a complete closure, a sale to a local company, or a reduction to a distribution/import model without a local presence. This is a forecast: This list is based on data prior to 2025. Actual results for 2025 may differ. https://www.tuko.co.ke/business-economy/613862-list-foreign-companies-exited-kenyan-market-2025/ https://nairobileo.co.ke/features/article/24906/companies-that-closed-down-kenyan-operations-in-2025 https://streamlinefeed.co.ke/news/kenyas-corporate-graveyard-why-2025-was-a-brutal-year