Is Fashion the New Gold Rush? Kenya’s Hottest Business Right Now Isn’t Tech — It’s T-Shirts

You would think in 2025, the next big thing in Kenya would be AI or crypto. But nope — it’s clothes.

Starting a clothing store might be the smartest money move you make this year. And no, this isn’t a fashion influencer’s opinion. It’s from ICEA LION Asset Management’s latest Investor Pulse report.

According to the data, clothing and apparel stores posted the strongest business growth across all retail segments in Q2 2025. A whopping 75-point jump from the previous quarter. That’s not a blip. That’s a fashion stampede.

And here’s what makes it wild — the growth isn’t because brands are jacking up prices. It’s because more people are buying clothes. Plain and simple.

Translation? People have money to spend. And they’re choosing to spend it on style.

Compare that to food and beverage businesses. They grew, but only by 7 points. House fittings and accessories? Down 9 points. Even general retail took a 35-point dip.

But fashion? Up. Way up.

Nairobi and Mombasa led the pack. Clothing stores there are seeing more foot traffic, more sales, and more energy. It’s like fashion found its groove again — and it’s not slowing down.

Why the shift? One reason could be stabilised prices. Commodity costs aren’t rising like they were. That makes clothes more affordable to stock and sell.

Another reason? Demand. People care more about how they look now than they did a year ago. Post-pandemic style is in full effect. From weddings to work events, everyone wants to step out looking sharp.

And if you’re wondering whether inflation is biting into fashion spending, think again. The report says increased sales were “mainly attributed to more customers rather than higher prices.” That’s good news. It means growth is real, not inflated.

Still, not all areas are winning. Nakuru and Nyeri reported a drop in sales. Income declines there could be dragging things down. Meanwhile, Eldoret is flexing — it had the highest number of people reporting income growth.

Also interesting? Essentials like maize flour and cooking oil are still flying off shelves. But demand for things like veggies and processed foods is dipping. That tells you where the average shopper’s head is.

They’ll still spend, but they’re being choosy.

For retail entrepreneurs, that’s your cue. Consumers want value, but they’re willing to spend on things that make them feel good. Clothes fit that mood perfectly.

And let’s be honest — nobody brags about buying salt. But a new outfit? That’s Instagram-worthy.

So if you’ve been sitting on a business idea, thinking about launching a clothing line, thrift page, or boutique — this might be your moment.

Because in 2025, fashion isn’t just about self-expression.

It’s becoming the safest bet in retail.