A recent report by Elite Mawu Agency has found that inadequate branding is costing Kenyan SMEs as much as 60% of their potential revenue. The report, titled the Kenya Branding Report Card 2025, paints a concerning picture of the challenges faced by businesses in diverse sectors—including fast-moving consumer goods, manufacturing, real estate, logistics, agriculture, and fintech—in cities like Nairobi, Kisumu, and Mombasa.

Published just 23 hours ago by a correspondent in Nairobi, the report draws on data collected online between October and December 2024, surveying 1,000 respondents that included 30% Kenyan consumers and 70% SME representatives. The findings emphasize that poor branding not only undermines customer identification and trust but also leaves many SMEs struggling to stand out in an increasingly competitive market. As a result, many businesses are forced into price-driven competition, ultimately stifling growth and leading to significant missed sales opportunities.

The Anatomy of the Report: Methodology and Key Findings

The Kenya Branding Report Card 2025 was designed to provide a comprehensive assessment of the state of branding among Kenya’s SMEs. The survey captured insights from a wide cross-section of stakeholders, from business owners and marketing professionals to everyday consumers. By involving participants from various industries, the report provides a well-rounded picture of how branding—or the lack thereof—affects consumer behavior and revenue generation.

According to the data, poor branding manifests in several critical ways:

• Lack of Distinctive Visual Identity: Many SMEs do not invest enough in creating a distinct logo or choosing attractive color schemes that can make their brand memorable. Visual elements, when well-designed, play a crucial role in generating leads and building customer loyalty.
• Inconsistent Messaging: Businesses with poorly crafted logos and inconsistent messaging struggle to convey their value proposition effectively. This inconsistency can create confusion among potential customers, further eroding trust.
• Negative Online Presence: In today’s digital age, negative online reviews and an unprofessional digital footprint can severely damage a company’s reputation, discouraging new customers from engaging with the brand.

Voices from the Frontline: Insights from Industry Leaders

Esther Murugi, Founder and CEO of Elite Mawu Agency, was unequivocal in her assessment of the situation. “When a brand is not well-established, potential customers may remain oblivious to its existence, resulting in significant missed sales opportunities,” Murugi stated. She further elaborated, “A poorly crafted logo, inconsistent messaging, or negative online reviews can together create a detrimental image, deterring customers from engaging with the business.”

Murugi’s observations are critical, especially as the agency celebrates its 5th anniversary—a milestone that underscores both its experience in the industry and its commitment to improving branding standards across the country. Her comments echo the sentiments of many SME owners who feel that the lack of a coherent brand identity hampers their ability to compete in saturated markets.

The High Cost of Poor Branding

For Kenyan SMEs, branding is more than just a marketing exercise—it is the cornerstone of business identity and customer engagement. The report indicates that without a clear and coherent brand identity, SMEs are less likely to attract and retain customers. This leads to a direct revenue loss, estimated at a staggering 60% for many businesses. In a competitive market, where differentiation is key, failure to establish a memorable brand can result in a vicious cycle of declining sales and dwindling customer loyalty.

Poor branding forces many SMEs into a corner where they rely heavily on price-based competition. Without a distinctive brand identity or unique selling proposition, these businesses are compelled to lower prices in an attempt to attract customers. Over time, this strategy erodes profit margins and makes it difficult for companies to invest in growth-oriented initiatives.

The Digital Imperative: Branding in the Age of Social Media

In today’s digital landscape, a strong online presence is non-negotiable. With the majority of consumer interactions now taking place on social media platforms and through online channels, Kenyan SMEs must recognize the power of digital branding. The report highlights several key elements that are essential for effective digital branding:

• Responsive Website Design: A well-designed, mobile-optimized website is often the first point of contact for potential customers. It must reflect the brand’s values and offer a seamless user experience.
• Consistent Social Media Presence: Active engagement on platforms such as Facebook, Twitter, Instagram, and LinkedIn can help businesses build a community around their brand. Regular updates, engaging content, and prompt responses to customer queries are vital.
• Positive Online Reviews and Reputation Management: In the digital era, online reviews can make or break a brand. SMEs must actively manage their online reputation by addressing negative reviews and highlighting positive customer experiences.
• Visual Storytelling: High-quality visuals—ranging from logos and color schemes to promotional videos and infographics—play a crucial role in storytelling. Brands that can effectively communicate their story through compelling visuals are more likely to resonate with their target audience.

These digital strategies are not just about aesthetics; they are about creating an emotional connection with consumers. A well-executed digital branding strategy can drive customer engagement, foster loyalty, and ultimately lead to increased revenue.

Global Perspectives: Lessons from Successful Branding Strategies

Across the globe, strong branding has been recognized as a key driver of business success. For instance, companies like Apple, Nike, and Coca-Cola have built their empires on the back of robust brand identities that transcend mere products and services. These brands have successfully created emotional connections with consumers, which has translated into consistent revenue growth and market leadership.

For Kenyan SMEs, adopting similar branding principles could be transformative. Here are a few strategies that have proven effective internationally and could be adapted to the local context:

1. Investing in Professional Design: Many successful brands invest heavily in professional design services to create logos, websites, and marketing materials that stand out. For Kenyan SMEs, this might mean reallocating budget towards hiring experienced designers or partnering with creative agencies.
2. Developing a Clear Brand Message: A strong brand message should communicate the company’s core values, mission, and unique selling proposition. SMEs need to clearly define what sets them apart from competitors and consistently communicate this message across all channels.
3. Engaging Storytelling: Consumers today are not just buying products; they are buying into stories. Brands that can craft and share compelling narratives about their origins, challenges, and successes tend to build deeper connections with their audience.
4. Leveraging Social Proof: Positive customer reviews, testimonials, and influencer partnerships can significantly enhance a brand’s credibility. For SMEs, encouraging satisfied customers to share their experiences can help counteract the negative effects of poor branding.
5. Continuous Monitoring and Adaptation: The market is dynamic, and so should be a brand’s strategy. Regularly assessing brand performance through customer feedback and market analysis allows businesses to make necessary adjustments and stay relevant.

Government and Industry Support for SME Branding

Recognizing the critical role that branding plays in economic growth, both the government and industry bodies in Kenya have begun to take proactive measures to support SMEs. Initiatives such as business incubators, digital transformation programs, and marketing support funds are designed to help SMEs improve their branding and overall competitiveness.

For example, several government-led programs aim to provide training in digital marketing and brand management to SME owners. These programs not only equip entrepreneurs with the necessary skills but also offer mentorship opportunities with branding experts. Additionally, industry associations and chambers of commerce are increasingly organizing workshops and seminars focused on best practices in branding.

The private sector, too, is stepping in. Creative agencies and marketing consultancies are offering tailored solutions for SMEs, often at subsidized rates, to help them develop and implement effective branding strategies. These collaborations are essential for creating a vibrant ecosystem where SMEs can thrive.

The Economic Impact: Beyond Revenue Loss

While the immediate consequence of poor branding is a loss in revenue, the ripple effects extend far beyond the balance sheet. A weak brand can have long-term implications on customer loyalty, market share, and even the overall health of the economy. When SMEs fail to establish a strong identity, they are less likely to attract investments, both domestic and international, which in turn stifles innovation and job creation.

Research has consistently shown that businesses with strong brand identities tend to perform better in competitive markets. They are more resilient during economic downturns and are better positioned to capitalize on growth opportunities. For Kenya, where SMEs form the backbone of the economy, improving branding practices could lead to significant improvements in economic performance, enhanced consumer confidence, and overall market dynamism.

Overcoming the Branding Challenge: Practical Steps for SMEs

For many SMEs, the first step towards overcoming poor branding is acknowledging the problem and investing in long-term solutions. Here are several practical steps that businesses can take to improve their brand identity:

1. Conduct a Brand Audit: SMEs should begin by evaluating their current brand image. This involves assessing the effectiveness of existing logos, color schemes, messaging, and overall market perception. A thorough audit can help identify gaps and opportunities for improvement.
2. Engage Professional Help: While budget constraints may limit options, investing in professional branding services can yield significant returns. SMEs should consider collaborating with experienced designers and marketing experts who can help reimagine their brand identity.
3. Develop a Comprehensive Branding Strategy: A clear and actionable branding strategy should outline the company’s target market, unique selling propositions, core values, and long-term vision. This strategy should serve as a roadmap for all marketing and communication efforts.
4. Enhance Digital Presence: Given the central role of the internet in modern commerce, SMEs must prioritize their digital footprint. This includes developing a responsive website, maintaining active social media profiles, and leveraging digital marketing tools to reach a wider audience.
5. Monitor and Adapt: Branding is not a one-time exercise. Continuous monitoring of market trends and customer feedback is essential. SMEs should be prepared to adapt their branding strategies in response to evolving market conditions and consumer preferences.
6. Invest in Customer Engagement: Building a strong brand is as much about connecting with customers as it is about visual identity. SMEs should focus on creating engaging content, soliciting feedback, and building long-term relationships with their customers. Positive interactions can help foster loyalty and encourage repeat business.

Success Stories: Kenyan SMEs That Transformed Through Branding

While the report highlights significant revenue losses due to poor branding, it also offers a glimmer of hope. Several Kenyan SMEs have successfully reinvented themselves by focusing on strong brand development. For instance, companies in the fintech and agritech sectors have leveraged innovative digital marketing strategies to create memorable brands that resonate with their target audiences. These success stories serve as proof that with the right investment in branding, even small businesses can achieve substantial growth and market differentiation.

The Role of Education and Capacity Building

Improving branding among SMEs is not solely the responsibility of individual businesses; it also requires a broader focus on education and capacity building. Universities, business schools, and professional training institutes in Kenya are increasingly incorporating courses on branding, digital marketing, and entrepreneurship into their curricula. Such educational initiatives can help equip the next generation of business leaders with the tools and knowledge needed to build strong, competitive brands.

Moreover, government-sponsored training programs and workshops can provide SMEs with practical insights and hands-on experience in modern branding techniques. By fostering a culture of continuous learning and innovation, Kenya can empower its SMEs to overcome the challenges posed by poor branding and unlock their full revenue potential.

Looking Ahead: A Call to Action for Kenyan SMEs

The findings of the Kenya Branding Report Card 2025 serve as a clarion call for Kenyan SMEs to re-evaluate their branding strategies. In a marketplace where brand identity is increasingly linked to consumer trust, loyalty, and ultimately revenue, the need for a strong, coherent brand has never been more critical. For SMEs, the path forward involves not only addressing the shortcomings highlighted by the report but also embracing innovative branding practices that can set them apart in an ever-evolving market.

As Kenya continues to develop into a hub of innovation and entrepreneurial activity, businesses that invest in their brand today will be well-positioned to reap the rewards in the future. Whether it is through professional rebranding efforts, enhanced digital engagement, or targeted customer outreach, the steps taken now can help transform potential revenue losses into opportunities for sustained growth and success.

Conclusion

In summary, the report by Elite Mawu Agency reveals a stark reality: Kenyan SMEs are losing up to 60% of potential revenue due to poor branding practices. With consumers increasingly seeking brands that offer clarity, consistency, and credibility, the importance of a strong brand identity cannot be overstated. From the failure to differentiate in saturated markets to the reliance on price-based competition, the consequences of poor branding are profound and far-reaching.

However, this challenge also presents a significant opportunity. By investing in comprehensive branding strategies—encompassing everything from professional design and digital marketing to customer engagement and capacity building—Kenyan SMEs can turn their fortunes around. With support from both the public and private sectors, and by learning from global best practices, there is tremendous potential for businesses to not only recover lost revenue but also to establish themselves as market leaders.

The time for action is now. As the digital landscape continues to evolve and consumer expectations rise, Kenyan SMEs must prioritize branding as a key driver of business success. With a clear focus on developing a distinctive, consistent, and engaging brand identity, the road ahead can be one of growth, innovation, and increased revenue—transforming the SME sector into a dynamic force for economic prosperity in Kenya.

Through decisive leadership, strategic investments, and a commitment to quality, Kenyan SMEs have the opportunity to rewrite their growth story. The Kenya Branding Report Card 2025 is not just a wake-up call; it is an invitation to transform, innovate, and lead. The future belongs to those who recognize that in today’s competitive environment, branding is not a luxury—it is a necessity.

As the report resonates across the business community, industry experts, educators, and policymakers alike, the call to action is clear: invest in your brand today, and secure a prosperous tomorrow.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

24th February, 2025