In brief
In Nairobi, the popular food creator That Girl Boina shuttered her waxing studio after a customer flagged payment fraud, revealing a wider crisis of employee theft that’s weakening small businesses continent‑wide. A 2022 PwC study found 63% of East African firms hit by economic crime, spotlighting the gap in oversight. Large retailers like Tuskys and Nakumatt collapsed partly due to stock and cash theft, while entrepreneurs in Ghana and Kenya faced similar theft on a smaller scale. Loss‑control specialists warn that only 10% of businesses implement safeguards, and many respond by tightening procurement and cash handling. The story underscores that even modest theft can push cramped businesses into the ground, prompting a shift toward stricter hiring and monitoring.
When popular Kenyan food creator That Girl Boina took a two‑week holiday to Europe, she expected to relax. A week into the trip a customer’s Instagram message exposed a problem that would ultimately lead to the closure of her business.
“I was at your studio, I liked everything. The only problem was that I was asked to send money to a different number. It wasn’t the number on the wall,” a client wrote.
Boina opened Waxaholic Studio in Nairobi’s central business district on 1 September 2024. Though it had made a profit in the first few months, revenue fell in early 2025. She initially blamed a seasonal slump, but the customer’s message forced her to look deeper.
She had hired a receptionist and two specialists, and trusted them to manage the studio. “It never occurred to me that maybe I was getting clients and someone else was stealing from me,” she told the BBC.
After investigating and finding irregularities, Boina chose to close instead of confronting staff. She listed the studio for sale, sold some equipment and closed Waxaholic in October 2025. “I remember my friend taking me to a restaurant, and I started crying,” she said.
In September, a year after the closure, Boina shared a video on TikTok recounting her experience. The clip went viral, gathering almost one million views and prompting many Kenyan business owners to reveal their struggles with employee theft.
Theft isn’t limited to small parlours. East Africa’s largest supermarkets, like Tuskys and Nakumatt, collapsed partly because of employee fraud. An audit found Tuskys lost over 100 million Kenyan shillings a month, with staff pocketing cash, manipulating tills and colluding with suppliers. Nakumatt’s losses exceeded $100 million in unaccounted stock.
Hipora Business Solutions estimates that employee theft accounts for over 60% of losses for small businesses. According to Hipora boss John Wanjohi, “Employees are like a cartel that colludes with clients and suppliers to perpetuate theft.”
Theft can also be subtle, involving stock manipulation or supplier price‑inflation. Kenyan ready‑to‑wear brand IKOJN founder Cris Njoki discovered that a staff member was urging suppliers to quote higher prices, siphoning the profit. After confronting the employee, the situation was resolved.
In Ghana, sports journalist Nabila Muftawu’s electrical shop nearly collapsed after staff theft. He hired three attendants; the third employee, after denying allegations, was found to have stolen up to $30 daily. His salary from journalism allowed him to rebuild, but the experience highlighted the threat to small businesses’ survival.
Small African enterprises often operate on tight margins, with limited access to finance and high borrowing costs. Without a financial cushion, even minor losses can threaten their viability. “Many businesses lack proper safeguards and only seek loss‑control specialists after the problem becomes serious,” says Wanjohi.
Legal counsel advises that employers should gather evidence, allow an employee to respond, and only proceed to dismissal if warranted. If an employee admits to theft and agrees to repay, that should be written; otherwise, termination and, if necessary, criminal charges are permissible.
Boina says she will now be slow to hire and quick to fire. “I cannot teach you integrity,” she concludes, underscoring the broader lesson that integrity and oversight are essential for sustainable small‑business growth across Africa.
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