Employee Theft Plagues Small Businesses Across Africa

Employee theft is a significant and pervasive challenge for small businesses across Africa, with cases ranging from diverted payments to stolen inventory threatening their survival. The issue gained widespread attention after a popular Kenyan food creator, "That Girl Boina," shared her experience of closing her waxing and hydrafacial studio, Waxaholic Studio, due to internal theft.

Boina discovered the problem when a customer messaged her during a European holiday, revealing that she had been asked to send payments to an incorrect phone number. Despite initial profits, revenue at Waxaholic Studio began to decline in early 2025. Boina realized that while clients were being served, she was not seeing the expected income. Ultimately, the business closed in October 2025 after failing to find a buyer. Her subsequent TikTok video recounting the experience went viral, drawing out similar stories from other Kenyan business owners.

The reaction to Boina's story underscored the widespread nature of employee theft in Africa. Many small businesses operate with limited oversight, where a few employees may manage payments, stock, and supplier interactions. A 2022 PwC survey indicated that 63% of respondents in East Africa reported experiencing economic crime, a figure higher than the global average of 46%.

Large supermarket chains have also been impacted. Both Tuskys and Nakumatt, formerly major retailers in the region, collapsed partly due to significant losses attributed to employee fraud and stock theft. An audit at Tuskys revealed monthly losses exceeding 100 million Kenyan shillings (£581,000) from schemes involving cashiers pocketing money, manipulating transactions, and collusion with suppliers. Nakumatt reportedly lost over $100 million in stock due to employee theft.

Loss-prevention firms estimate that employee theft accounts for over 60% of losses for small businesses in East and Southern Africa. "Employees are like a cartel that colludes with clients and suppliers to perpetuate theft," noted John Wanjohi, head of Hipora Business Solutions East Africa.

Employee theft can manifest in subtle ways, making it difficult to detect. Cris Njoki, founder of the Kenyan clothing brand IKOJN, discovered an employee colluding with a supplier to inflate raw material prices, with the excess funds being split between them. Njoki has since implemented stricter, centralized procurement controls with a clear paper trail.

In Accra, Ghana, Muftawu Nabila, a sports journalist who runs an electronics shop, nearly closed his business due to theft by a third employee. While previous employees had taken smaller amounts, this individual was stealing a significant portion of daily sales. Nabila only realized the extent of the issue when restocking proved difficult. A stock count confirmed the discrepancy. Nabila eventually dismissed the employee.

The consequences of employee theft can be particularly severe for small businesses in Africa due to tight profit margins, limited access to finance, high borrowing costs, and unpredictable tax environments. Lower purchasing power in many African markets further restricts their ability to absorb losses or pass costs to consumers. In a continent where the informal economy is substantial, even minor financial losses can jeopardize a small business's ability to operate.

Many small businesses lack adequate safeguards. Wanjohi's firm helped a pharmacy branch tighten controls over cash handling and stock, resulting in daily sales increasing from 80,000 to 200,000 Kenyan shillings. He advises businesses to seek help from loss-control specialists before problems become critical.

Addressing suspected theft requires careful adherence to legal procedures. Employers must gather evidence and allow employees to respond before taking disciplinary action. Legal advocates suggest that if theft is admitted and repayment is agreed upon, it should be documented in writing. If not, termination can occur with a valid reason, and charges can be pressed. Boina has since adopted a more cautious approach to hiring, emphasizing, "I cannot teach you integrity."