Employee theft leaves African small business owners struggling to stay open

Kenyan food creator That Girl Boina was a week into a European holiday when a customer's Instagram message raised concerns about payments at her Nairobi beauty business. The customer said they had been directed to send money to a number different from the one displayed inside Waxaholic Studio. The discovery helped prompt Boina's decision to close the business in October 2025.

Boina opened the waxing and hydrafacial parlour in Nairobi's central business district on 1 September 2024. By the time she travelled, she employed a receptionist and two specialists. The studio initially earned a profit, but revenue declined in early 2025. She first attributed the downturn to seasonal conditions and continued operating because of her investment, her employees and her hopes for the business.

After receiving the customer's message, Boina chose to close rather than confront her staff. She advertised the studio for sale that weekend, found no buyer and eventually sold some equipment while taking other items home. In September 2026, she described the experience on TikTok. A repost on X attracted close to one million views and responses from Kenyan business owners recounting similar losses. Boina says she has recovered emotionally but has yet to recover her investment.

Her experience reflects concerns among small businesses where a few employees handle payments, inventory and suppliers with limited supervision. A 2022 PwC survey found that 63% of East African respondents reported economic crime in their organisations, compared with 46% globally. Loss-prevention firm Hipora Business Solutions East Africa estimates that employee theft accounts for more than 60% of losses recorded by small businesses.

The alleged methods extend beyond diverted customer payments. Cris Njoki, founder of Kenyan clothing brand IKOJN, discovered that an employee was allegedly working with a supplier to inflate raw material prices and split the additional money. She investigated and presented evidence to the employee, who subsequently left. Njoki says the company now centralises procurement, maintains a paper trail and has its finance team communicate with suppliers and make payments.

In Accra, Ghana, Joy News sports journalist Muftawu Nabila says theft nearly destroyed his electronics shop. Before travelling to the United States to cover the Fifa World Cup in June 2026, he hired an attendant and left the business with little supervision. He says the attendant could take as much as $30 from daily sales of $200, with the theft continuing for two months.

Nabila became concerned when revenue could no longer cover restocking and began checking inventory each morning. The employee denied stealing, but her own stock count revealed a substantial discrepancy between goods and sales receipts. He dismissed her and used his journalism salary to rebuild the shop.

Such losses can be particularly damaging for African small businesses facing narrow margins, restricted financing, expensive borrowing and unpredictable tax conditions. Hipora boss John Wanjohi says safeguards are often inadequate. At one struggling pharmacy branch, he says daily sales rose from 80,000 to 200,000 Kenya shillings after his team strengthened controls over cash, inventory and cashier operations.

Investigating suspected theft also requires employers to follow legal procedures. Advocate Judith Guserwa says businesses must collect evidence and give employees an opportunity to respond before imposing disciplinary measures. For Boina, the closure has changed her approach to recruiting. She says she will take more time over hiring and act faster on dismissals.