Ever walked through Nairobi’s Industrial Area or Athi‑River and noticed something: the big engineering firms—steel mills, cement plants, heavy machinery workshops—are almost all Indian‑owned.

It’s estimated that about 60% of the mid‑ to large‑scale engineering and manufacturing companies in Kenya remain controlled by Kenyan‑Indians, especially those of Gujarati descent. Here is a snapshot of where ownership lies by firm size.

1. A Snapshot: Where Ownership Lies by Firm Size

Back in the 1990s and early 2000s, studies showed a clear divide:

Enterprise Size	% African-Kenyan Ownership	% Kenyan Indians Ownership
Micro (e.g., small shops)	~87%	~9%
Small Enterprises	~54%	~38%
Medium Enterprises	~22%	~55%
Large Enterprises	~11%	~62%

Clearly, African Kenyans dominate micro and small trading or repair shops; Kenyan Indians dominate factory‑scale manufacturing and engineering companies (Paperzz). This pattern is nearly a century old, but persists in modern data.

Why Are Kenyan Indians So Dominant?

1. Access to Capital: Generational Wealth vs First‑Gen Hustle

Many are second, third, or even fourth-generation business owners. They’ve inherited businesses or had relatives who set up shops in the 1940s–60s.

That means they already had capital—or easier access to it via family, Indian-owned banks, or tight business networks.

A young Kenyan Indian entrepreneur can often get funding, machinery, or credit just by tapping into the community.

For African Kenyans, the opposite is true. Entrepreneurship starts from scratch—no family business to inherit, no ready capital, no community lending network.

Many must rely on personal savings or unstable bank loans with high interest rates. And when the business needs KSh 20M+ in startup machinery? That’s a mountain.

Results? Indians scale faster, Africans stay small longer.

2. Business Culture: Intergenerational Thinking vs Short-Term Survival

Kenyan Indians tend to think long-term. Build slowly, expand over 20 years, and reinvest all profits.

Many don’t chase flashy lifestyles—they live modestly, even when the business is booming. Their goal is to build something that lasts beyond them—often passing it down to children.

The pressures are different for African-Kenyans. Most are first-generation urban earners.

They support their extended family, educate their siblings, pay rent, and cover bills.

The business has to generate income now. That means profits are quickly consumed, not reinvested. And many are juggling a job plus a side hustle.

Results? Indian businesses accumulate assets and scale; African ones often plateau at the survival stage.

3. Community & Trust Networks: Closed Circles vs Solo Paths

Kenyan Indians operate like economic clans. Business is kept within family or caste circles. Trust is high, information flows fast—“Who has land in Mlolongo? Who’s importing that new cutting machine?”

Employees are often cousins, in-laws, or long-time family friends. That kind of internal trust speeds up decision-making and reduces risk.

For African-Kenyans, many go it alone. There’s little intergenerational knowledge-sharing or community mentorship.

And in many cases, collaborations get derailed by mistrust, power struggles, or a lack of legal structures. Partnerships often feel risky, especially if bad experiences have happened before.

Result? Indians multiply opportunities through trust; Africans move cautiously—and often solo.

4. Cultural Outlook on Entrepreneurship: Social Expectation vs Social Gamble

In many Indian families, business is expected. Children grow up in it.

It’s normal to inherit a factory, work weekends, or skip white-collar jobs to run a warehouse. Risk is normalized, even respected. Entrepreneurship is seen as stability.

In the case of African-Kenyans, business ownership often starts with fear. The safe path is a degree and a government job or an NGO paycheck. Starting a business feels like a gamble—what if you fail?

You’ll be mocked or pitied. Society hasn’t yet normalized business as a first option, especially for technical fields like engineering.

Indians raise kids to be business owners; Africans raise kids to be job seekers.

But there’s more to the contrast

Indian-owned firms typically start formal, registered businesses, with compliance with KRA (at least on paper), established HR and accounting systems.

Many African-owned engineering businesses operate informally for years—struggling with licenses, compliance, and paperwork. That prevents access to large contracts, loans, and even talent.

Subsequently, Indian firms land big tenders; African firms often stay in the small-scale game.