Employee theft is putting increasing financial pressure on small businesses across Africa, with entrepreneurs in Kenya and Ghana reporting losses from diverted payments, missing stock and procurement fraud. The problem has forced some businesses to close, while others have introduced stricter financial controls to prevent further losses.
A PwC economic crime survey found that 63% of respondents in Eastern Africa experienced fraud within their organizations during the preceding two years, compared with 46% globally. The findings covered economic crime broadly, including customer fraud, asset misappropriation and procurement fraud.
Kenyan Entrepreneur Closes Business Following Suspected Theft
Kenyan content creator That Girl Boina opened Waxaholic Studio, a waxing and facial treatment business in Nairobi, in September 2024. The business initially generated profits but experienced declining revenue in early 2025, prompting concerns about its financial performance.
While vacationing in Europe, Boina received a message from a customer who reported being instructed to send payment to a different mobile money number. The discovery raised suspicions that employees had diverted payments without her knowledge.
Boina decided to close the business rather than confront her three employees, eventually shutting the studio in October 2025. She later shared her experience on TikTok, attracting widespread attention from other business owners reporting similar problems.
Businesses Report Procurement Fraud and Missing Revenue
Cris Njoki, founder of Kenyan clothing brand IKOJN, reported discovering that an employee had allegedly collaborated with a supplier to inflate raw material prices. According to Njoki, the employee and supplier shared the additional money collected through the inflated invoices.
Following an internal investigation, the employee left the company, and Njoki introduced centralized procurement procedures. Finance personnel now communicate directly with suppliers and maintain payment records to improve oversight.
In Ghana, sports journalist Muftawu Nabila reported repeated employee theft at his electronics business in Accra. One employee allegedly diverted portions of daily sales over two months, leaving insufficient funds to replenish inventory.
Larger Retailers Have Also Reported Significant Losses
Employee theft has affected major retailers, including Kenya’s former supermarket chains Tuskys and Nakumatt, which collapsed amid wider financial and operational difficulties. A 2015 audit reportedly found that Tuskys was losing more than 100 million Kenyan shillings monthly through employee theft and transaction manipulation.
Nakumatt also experienced substantial inventory discrepancies before its collapse, with more than $100 million in stock reportedly unaccounted for. Both retailers faced additional operational and financial challenges beyond employee fraud.
Experts Recommend Stronger Financial Controls
John Wanjohi, head of loss-prevention company Hipora Business Solutions East Africa, estimates that employee theft accounts for more than 60% of losses recorded by small businesses his firm assesses. He said suspected schemes increasingly involve employees coordinating with customers and suppliers.
Wanjohi cited a pharmacy where improved cash-handling and inventory controls coincided with daily sales increasing from 80,000 to 200,000 Kenyan shillings. Kenyan advocate Judith Guserwa emphasized that employers investigating suspected theft must collect evidence, allow employees to respond and follow applicable employment procedures before dismissal.
Featured image credits: Paul Saad via Flickr
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