Traders and entrepreneurs have been cautioned against diverting business capital to finance political campaigns, with a financial expert warning that doing so could expose their enterprises to financial strain.
Together As One Microfinance director Hezekiah Kariuki said business savings should primarily be used to sustain operations and expand enterprises rather than finance political activities.
Kariuki said entrepreneurs should keep their business finances separate from funds used to support political ambitions.
“During and after campaigns, I have observed many ventures collapse after entrepreneurs directly or indirectly indulge in funding campaigns,” Kariuki said.
He said the unpredictable nature of politics could expose business owners to losses, particularly when candidates they support fail to win elections.
“I am not opposed to political ambitions, but it would be better for a candidate to separate the accounts and use a different source of finances instead of crippling the business,” he said.
Kariuki also cautioned contractors and other business owners against taking loans specifically to finance political campaigns.
He said such borrowing could leave businesses with debt obligations that may affect their ability to operate smoothly after the election period.
His warning comes as the cost of political campaigns in Kenya continues to attract attention ahead of the 2027 General Election.
The Independent Electoral and Boundaries Commission has gazetted campaign financing regulations and spending limits for the 2027 polls.
The framework allows presidential candidates to spend up to Sh4.44 billion, while political parties have a combined spending ceiling of Sh17.7 billion.
The Star has reported that the IEBC’s campaign expenditure framework includes major costs such as transport, advertising and media campaigns, campaign personnel, agents, communication, mobilisation and security.
For political parties, transport alone is projected at Sh11.81 billion, while advertising and media campaigns account for Sh1.84 billion.
The financial demands of seeking elective office can also be significant at lower levels.
The Star reported that IEBC’s spending ceilings for parliamentary contests range from about Sh11.2 million in Tetu to Sh94 million in North Horr, depending on the constituency.
Kariuki urged entrepreneurs to protect their working capital and consider investments that can strengthen their businesses and create long-term wealth.
He said political participation should not come at the expense of the financial stability of businesses that provide livelihoods for entrepreneurs and their employees.