When starting a business, most entrepreneurs paint a clear picture in their minds of who their ideal customer is. But what if that image is wrong? In Kenya, a mismatch between product and market is one of the most common, yet least understood, reasons why small businesses struggle to gain traction. We often assume our audience is “the middle class” or “urban youth” without understanding who those people really are, what they can afford, or what they value. This article explores the blind spots many Kenyan entrepreneurs face when identifying their target market — and how to fix them.
The Myth of the Middle Class
Many Kenyan entrepreneurs believe their product or service will appeal to the middle class. But what does 'middle class ' even mean in Kenya? Most use the term loosely — assuming it means anyone who lives in Nairobi, owns a car, or shops in supermarkets. In reality, the economic lines are blurrier.
Recent data from the Kenya National Bureau of Statistics (KNBS) shows that the national Gross County Product (GCP) per capita in 2023 was KES 293,229. Nairobi, however, had a per capita GCP of KES 802,344 — nearly three times the national average. But even within Nairobi, inequality is stark. Many people who appear middle class on the outside are heavily indebted or living paycheck to paycheck.
In a 2024 consumer spending report, 77% of Kenyans reported increased spending — not from growth, but to cope with higher costs. Only 20% saw income growth. This means your ideal customer might be far less liquid than you think.
Key Insight: Don’t build your business around an illusion. Define your customer by behavior and need — not by how they look on social media.
When the Buyer Isn’t Who You Expected
Many businesses are surprised when their initial assumptions about buyers fall apart. For instance, the founder of Virtual Mandarin assumed that Chinese firms, schools, and wealthy clients would be the most consistent learners of Mandarin. Surprisingly, it turned out that working professionals, often with no direct China connection, were the most loyal students — driven purely by personal interest.
Similarly, a former artisan bread baker assumed affluent Nairobians would pay KES 150 for organic loaves. But despite initial buzz and interest, few were willing to consistently pay. The most enthusiastic 'fans' turned out to be the most inconsistent payers.
Key Insight: Buzz doesn’t equal business. Your most vocal followers may not be your most reliable customers.
The Gen Z Wake-Up Call
Kenya’s Gen Z (born 1997–2012) is now emerging as a powerful consumer base. By 2025, they are projected to account for over KES 4.4 trillion in spending across Africa, with Nairobi alone contributing KES 1.3 trillion. This group values authenticity, convenience, and tech-first solutions. They are less loyal to brands and more drawn to purpose.
Are you selling to them in a way that resonates? Or are you assuming they’ll come to you because you’re “on Instagram”?
Key Insight: Don’t just market to Gen Z — understand what they’re willing to spend money on, and why.
Step-by-Step: How to Do Market Research in Kenya
Start with Observation
Spend time where your customers are: online, in physical locations, or in communities. Listen. Watch. Learn.
Create Buyer Personas Based on Real People
Don’t guess. Interview at least 5–10 potential customers. Ask: What do they currently use? What frustrates them? What would they pay more for?
Test the Waters with Micro-Pilots
Launch a small version of your product to test interest. Use Google Forms, WhatsApp, or Jumia/Kilimall to sell limited inventory.
Use Digital Tools
Use free platforms like Google Trends, Meta Audience Insights, and Twitter/X polls. For physical businesses, talk to local shopkeepers about trends.
Ask for Feedback and Listen Carefully
Don’t be afraid of criticism. Use it to tweak your product, pricing, or messaging.
Adjust Your Offering
Your research may reveal that you need to change who you target — or how you package your product.
Questions to Consistently Ask About Your Clients
One of the most powerful habits an entrepreneur can cultivate is to regularly check in with the reality of their audience. Don’t assume that what was true six months ago still holds today.
Here are some essential questions to keep asking:
Is this still true? (The most underrated but powerful question.)
Have my customers’ needs changed?
Are my most frequent buyers the same as my most vocal followers?
What is stopping potential clients from buying?
Where are my clients hanging out now — physically or digitally?
What alternatives are they choosing instead of me?
What new concerns or aspirations are emerging in their lives?
Have my prices outpaced or undercut the value perception?
Asking these questions regularly helps you adapt, stay relevant, and most importantly — serve real needs, not imagined ones.
Challenges in Doing Market Research in Kenya
Lack of Formal Data: Many consumers don’t have bank accounts or formal purchasing records.
Respondent Bias: People may tell you what they think you want to hear.
Low Survey Participation: Online forms are often ignored.
Fragmented Audiences: Kenya's diversity (urban/rural, language, income) makes segmentation tricky.
Tip: Mix online and in-person feedback. Ask probing questions. Pay attention to body language and tone.
Final Thought: The Cost of Assumptions
The real danger isn’t building a bad product — it’s building a good product for the wrong customer. Assumptions are expensive. Curiosity is free. Be relentless in finding out the truth about your market.
Comments
Post a Comment