Most businesses in Kenya fall under small and micro enterprises. Small hustles are the heartbeat of our economy. From boda boda riders, tuk tuk operators, matatu business to mama mbogas, mitumba sellers to phone repair shops, jua kali and so much of the same kind, these small businesses keep families fed , keeps children in school and towns alive.
Yet, many hustlers struggle with one thing that quietly determines whether their business grows or collapse, this is bookkeeping. A practice that is vital but rarely practiced in many small hustles.
In as much as bookkeeping may sound like something only big companies do, it’s simply about keeping record of the money coming in and going out. Without it, you might be making money but never building wealth.
With it, even a small hustle can grow into something sustainable. The beauty about this is that you don’t really have to have a degree in accounting or business in order for you to do proper bookkeeping, but with basic knowledge of your income, expenses and profits or losses, you are good to go
Simple bookkeeping tips any small hustler in Kenya can apply today.
1. Separation Business and Personal Money
One of the biggest mistakes many hustlers and small businesses make is mixing personal expenses with business money. You sell vegetables worth Ksh 700 in the morning, then immediately use it to buy food for the house or put it up in other business unrelated expenses. By the end of the day, you may never know what the business actually made.
How to overcome this
One of the easiest way to overcome this is to open a separate M-Pesa line just for your business, or even keep a small locked cash box, alternatively, on the same mpesa line, if you are unable to get a separate one, you may sign up for business accounts like LIPA NA MPESA or have a business pay bill number.
When money for family or personal use is needed, pay yourself a daily or weekly wage from the business, instead of dipping directly into sales. In this way you are able to track both your sales and income, while also giving you a clear picture of your hustle is performing.
2. Record Every Transaction
Most importantly the act of Bookkeeping starts with writing things down. It doesn’t matter if you make 5 sales or 50, just record them. The same goes for expenses, no matter how small. For example if you were selling mandazi, you could something like this,
Sold 3 mandazis @ Ksh 10 = Ksh 30
Bought cooking oil = Ksh 20
At the end of the day, you’ll know if you actually made a profit or just rotated money, this will help you make decisions that will positively affect your business.
Simple tools you can use,
A simple 40-page exercise book can help you, it doesn’ have to be an expensive venture,
A smartphone app like Bizna Books, M-Ledger, or zero,zoho books and many others available online
A wall calendar where you write down daily totals.
Whatever method you pick does not matter, do what works for you, what matters is consistency
3. Know Your Profit, Not Just Sales
So many hustlers get excited about sales: “I made Ksh 5,000 today!” But if you spent Ksh 4,500 on stock, fuel, and airtime, your profit is only Ksh 500. Without tracking this, it’s easy to think the business is booming while it’s actually struggling and headed to the wrong direction.
You could use this simple formula,
Profit = Sales – Expenses
Always subtract things like,
Stock purchase
Fuel/transport
Airtime for business
Rent or stall fees, county government permit
Small expenses like packaging or parking fees
Always note that the true health of your hustle is in the profit, not the sales.
4. Plan for Savings and Emergencies
Business records and Bookkeeping is not just about tracking; it’s about planning. Set aside a portion of your profit regularly. Even Ksh 50 a day adds up to Ksh 1,500 a month, enough to restock or handle an emergency. Take note of those little amounts of money like 20 bob that you easily give away, they could add upto so much at the end of the month and ultimately eat into your profits.
Simple ideas for saving.
Join a local chama or SACCO where you can contribute weekly or daily, depending on how members agree.
Open a locked savings account or use M-Pesa lock savings like M-Shwari or KCB M-Pesa.
If in a boda boda or transport sector SACCO, contribute to their welfare fund.
This helps when your motorbike needs repairs, or when your matatu breaks down when stock is low, or when you want to expand. It also helps in other emergencies as may rise from time to time
5. Review Weekly or Monthly
At the end of each week or month, sit down and total everything. Add up income, add up expenses, and check how much profit you made.
Why this is this important?
You will notice patterns (maybe weekends are better for business than weekdays).
You will see where money leaks (like spending too much on airtime or lunch)
You will know when the business is ready to grow.
Even a 30-minute review once a week can change how you run your hustle and help you make very important decisions or changes or learn something you previously would not have noticed.
A practical example from a mama mboga shop
Let’s say a Mama Mboga sells vegetables.
Day Sales is Ksh 2,000
Expenses (stock + transport) Ksh 1,400
Profit: Ksh 600
If she saves Ksh 200 from that daily, by the end of the month she has Ksh 6,000 saved. With that, she can buy more stock in bulk (at a discount), repair her stall, or even invest in another small hustle.
That’s how impactful and powerful simple bookkeeping can be, it shows you where your money goes and helps you multiply it.
Conclusion
Every hustle matters. Whether you’re pushing a tuk tuk, running a small shop, selling second-hand clothes, or repairing phones, your work puts food on the table and drives Kenya’s economy forward. But if you don’t track your money, it can slip through your fingers. You ultimately never know where your money goes.
Simple Bookkeeping doesn’t need big calculators or fancy accountants. With just a notebook, discipline, and consistency, any hustler can take control of their money. The difference between a hustle that dies and one that grows often comes down to one thing: how well you manage what you already have.
So, the next time you make a sale, don’t just celebrate. Write it down. That’s the first step to building something that lasts.
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