22 Great Small Business Ideas In Kenya With Little Capital

James

Updated on

February 8, 2023

However small, establishing a new business requires excellent dedication and involves risks worth taking.

With today’s fast-growing economy, Kenya has become the leading business hub in East and Central Africa. Moreover, the onset of the pandemic has not only witnessed a decline in employment rates but has also recorded a steep increase in business potential. These factors make Kenya a very prospective place to start your own business, especially in the current economic milieu.

You need not be hesitant if you have no experience in the business industry. There are numerous profitable business ideas that you can start with very little capital to achieve your vision. Learning takes time; the more you learn hands-on, the more you succeed in business ventures.

So, if you’re considering starting your own business to ensure a steady flow of income, either passively or first-hand, there are several options on the market. Let us look at some small business ideas that have high-profit potential in Kenya.

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22 Best Small Business Ideas In Kenya With Little Capital

Here are some offline and online business ideas to start in Kenya:

1. Real Estate Business In Kenya

As Kenya gradually grows into a modern economy, there is a noticeable increase in real-estate companies. The rise in real-estate demands makes this a prospective business venture.

The real estate industry involves the process of buying lands or properties and selling or renting them out at a higher price.

In this system, you earn the profit margin between the buying investment and the selling price. However, although this may sound a little expensive to execute, you can easily find land at affordable prices.

Even though real-estate companies usually thrive in a city environment or major towns, you can also expand your venture in small towns and villages. Start your development project after purchasing your land. That way, your share price will increase in addition to the standard land appreciation.

Furthermore, you can focus your development project on buildings and growing trees for agroforestry, which is currently in high demand.

2. Soap-Making Business

Soaps are an essential household and personal hygiene commodity with great business potential. With the increased climate consciousness of this generation, there is a huge market for organic soaps that cater to individual needs.

Although there are several kinds of soap that you can create, the soap-making process is straightforward and easy to learn. A few online courses are sufficient to give you an idea of the procedure. Moreover, it only requires some basic chemical mixing, tools, and handling skills.

Start with soap-making on a small scale and gradually add better equipment and improvements as your business grows. If hard soap is difficult for you, consider making liquid soaps that are more versatile and long-lasting.

For selling, you can hire some salesmen to peddle in town. You can also set up pop-up shops in open-air markets to increase sales.

3. Red Earthworms Business In Kenya

With the increased demand for organic foods, potential customers are enquiring about the farming process and environment in which their food is grown. There has been an unprecedented boom in organic farms and healthier farming methods to meet this pressure.

One key point of organic farming is a biological method to enrich the soil. The most common organic plant nutrients include vermi-liquid and vermicompost, which can also be derived from red earthworms.

To start a red earthworm business, firstly, you will need a raised pole and timber structure readily available in rural markets. Besides, you will require buckets and cans of ten to 20-liter capacity wherein you will collect the vermi-liquid.

Moreover, red earthworms feed on fruit and vegetable peels which you can get for free. The only other investment you need to make is to purchase starter worms from a red earthworm farmer, which costs around Ksh 2,500 approx.

4. Cyber Cafe Business

Although Kenya is an ever-growing economy, a significant portion of the population needs access to information and technology. Information access is crucial in the 21st century, and businesses like cyber cafes facilitate data dissemination.

Apart from accessing the internet, a cyber cafe can provide many services, such as photocopying, printing, scanning, typesetting, etc. However, you need not burn a hole in your pocket to cater to them. The average budget for starting a new cyber cafe ranges from KSh 100,000 to 200,000.

Initially, open your shop with five computer desktops, one printer, one photocopier, and other typesetting tools, including stationeries. You can further increase the number of devices as you earn more revenue from the shop.

Furthermore, this is a lucrative business idea because if you can establish the shop and gain customer faith, you’ll likely make an average of KSh 1,500-4,000 daily.

5. Brick-Making Business In Kenya

Bricks are the primary building blocks for various types of construction. As already discussed, there is a steep rise in the real-estate business, and the need to build homes faster comes with it.

More importantly, a real-estate business owner is always on the lookout to decrease building costs, and bricks can help achieve that. Bricks are a cheaper alternative to construction stone, but they build homes just as durable.

The process of brick production requires little investment. A reasonable budget of KSh 100,000 is sufficient to fund your business venture.

All you need for brick production is a brick-making machine, spades, and hoes; hire skilled workers and ensure you have enough rich subsoil. Consider undergoing training in brick-making, as that helps create a lucrative vision for your business.

6. Start A Small Bakery Business

Investing in building a small bakery in Kenya is a lucrative business idea. It is also convenient since you can run a bakery from your home without renting storage space. However, you should open your bakery in a strategic location with high demand for baked goods, especially in the city.

The pieces of equipment you will initially need for baking include mixing equipment, ovens, pans, measuring cups, a weighing scale, and a cake-decorating device. Aside from raw materials, proven recipes, and business permits, you will also require good marketing skills to promote your upcoming bakery business.

The ideal budget for opening a bakery ranges from KSh 100,000-200,000, while the average daily profit can be anywhere between Ksh 3,000-5,000. Lastly, it is advisable to learn culinary skills to bake good quality bread and cakes to gain customer satisfaction.

7. Selling Wines, Spirits, and Fresh Juice Online

The pandemic has witnessed the alcohol industry being immensely affected. Visiting pubs and waiting in a queue at wine shops have now become a health hazard. This has created an online presence for e-commerce businesses selling spirits, and you, too, can take advantage of the growing local market. So, investing in such an online store guarantees a high revenue return.

First, you need to create or buy a website where your customers can order and pay for the drink of their choice. Creating an aesthetic yet multipurpose inventory showcasing your products is crucial for a better user experience.

Moreover, a hybrid delivery system can be convenient for many since it offers options for collecting the products from an offline store or receiving them at their doorstep.

Adding a selection of homemade fresh juice to your catalog can also attract customers. Since juice-making machinery is easy to purchase and store, it can further enhance your profit margins.

Don’t forget to provide coupons and discounts to gain a better online presence!

8. Opening A Barber Shop

Since barber shops are always in great demand among the male population in Kenya, they can be one of the most profitable small businesses to start. The negative connotation attached to barbershop owners is becoming increasingly redundant as the hair industry expands into other lifestyle areas.

Opening up a barber shop is quite simple and budget-friendly. You just need to rent a small room or two, set up some comfortable seats, purchase shaving and haircutting tools, and you’re ready to roll. All this can be arranged with an investment of Ksh 15,000 or lower.

You can further increase your profit by providing other services such as massaging, hairstyling, facials, and pedicures. However, before opening your shop, ensure you have good barber skills and hire some professionals.

9. Professional Home Cleaning And Decor

The demand for professional home decor and cleaning services runs high, as more and more people have started working from home. People are now ready to invest in renovation and professional cleaning service to enhance their home ambiance and make it conducive to work.

Cities and towns like Nairobi, Kisumu, Mombasa, and others have a rising market for such services.

Moreover, cleaning and organizing office space and homes can be done within a budget of Ksh 80,000 or lower. You will require such decor items as the customer demands, along with simple cleaning tools such as brushes, brooms, vacuum cleaners, cleaning liquid, sponges, etc.

This business can further specialize in commercial cleaning and decor or residential services. You can do both if you want to get a higher customer base.

10. Freelance Writing, Editing, and Copywriting

Offering freelance services such as content writing, editing, or copywriting is one of the most profitable side hustles in today’s world.

Many businesses and start-ups use such writers and editors to create their brands for a more substantial online presence. Thus, you can access a large clientele to start your freelancing business.

Many fiction writers proofread their work using editors and beta readers. They expect you to read and critique their writing before sending the manuscript for publishing.

Moreover, this business requires very little capital to get started. Owning a laptop, a stable internet connection, and good writing and technical skills are sufficient for a freelancer. Technically, you only have to invest in a good computer or laptop, which comes to an average of Ksh 20,000.

What gives this business a huge advantage is that you can do it as a full-time job or run it as a supplementary source of income. Both of these approaches are lucrative in the long run.

11. Office Supply Business

With companies expanding their office locations, businesses that aid in setting up an office space regularly are gaining more clients with each passing day. So, grab the opportunity and choose an office supply business as your next venture.

Running an office supply business entails supplying the office occupants with the necessary office resources and provisions and delivering them right to their doorstep. These resources include business cards, files, pens, stamp pads, paper clips, staff ID cards, etc. You can find these at meager prices, which you can then sell at a higher price, thus earning a profit.

However, even a simple business like that of office supply requires good marketing skills to promote your brand and gain customers. But once you do that, there will be a steady flow of income.

12. Child Care Services

In modern times, many parents require help monitoring their children as they get held up with various commitments and work. If you are good with children and have time on your hands, starting a business based on childcare services such as babysitting can be an excellent choice.

You can either open a particular center where parents can drop their children off before work or babysit at your client’s home. If you do not want to rent a place, you can simply offer services from home.

The main idea of such a business is to provide peace of mind to parents who are absent during the day.

Childcare services can only thrive when there is a good reputation involved. If you gain the trust of one customer, then they will refer you to others who require such services. With time, your business will earn substantial income and satisfaction.

13. Sell Second-hand Clothes

The second-hand clothes business, also known as “mitumba,” is a growing trade sector with very few people taking advantage of it. In growing economies, thrift shopping has become a part of popular culture as it is inexpensive and environment-friendly.

This business does not require any significant investments or complex skills. Moreover, the competitiveness of this sector is low, thus making it an attractive area to venture into.

You can buy your stock from popular markets in Nairobi and sell them at a higher price. However, you will need an excellent retail location for selling and delivering your products.

Being a developing country, Kenya has many people who prefer second-hand clothes as they are inexpensive compared to mass-produced garments from popular brands. You can make an average monthly profit of more than KSh 500 by selling second-hand clothes.

14. Food Delivery Business

There has been a significant boom in the mobile food delivery business. With an increase in the number of single working professionals and students who live outside their homes, there has been a high demand for ready homemade food delivered to their doorsteps.

This might be the perfect business for you if you’re good at cooking and have excellent recipes. Like other services such as childcare and babysitting, you will need to build an excellent reputation to receive more customers. Remember to set your food at a reasonable price for better exposure and business initiation.

Communication skills are very much required in this business to build better relationships with visiting clients and firms where you can buy your raw materials and cooking tools. An amiable personality and good manners are essential for building a customer base in the home-food industry.

15. Consultation Services

Building a consultation service is lucrative if you have a specialized degree in any particular field. Many organizations and individuals can utilize your knowledge for business or personal needs. Hence, consultation is a beneficial sector where recent graduates can develop their skills and knowledge.

By patiently serving every customer, they may refer you to others based on your performance and efficiency. For example, an accounting graduate can provide financial services to start-ups and other business owners to help with their taxes and revenue.

A consultant also requires good marketing skills to establish a secure presence in this industry. Consider learning marketing tips and skills to elevate the chance of your success further.

16. Pest Control

Pest infestations can be really inconvenient and painful. With increasingly cramped residential apartments, people are looking for affordable yet efficient pest control services to eliminate household pests and rodents. Thus, the pest control business has growth potential in the residential and agricultural sectors.

Moreover, pest control is in great demand during the cropping season to eradicate pests that damage healthy crops. Even animal farms offer an excellent market for pest control services since animals require frequent treatment for fleas, ticks, and other organisms that can affect their health.

To begin your business in the pest control industry, you need to acquire chemical and organic-based sprays, a combination of which can be used depending on the object and environment.

Furthermore, if properly handled with expertise and dedication, this business can make you substantial dividends that can provide you with a steady income.

17. Car Rental And Cleaning Services

Cars and motor vehicles have become essential commodities for everyday living. If you have enough money to invest in a car or two, consider leasing it in a way that will provide huge profits culminating in more than the buying price.

Moreover, regardless of the weather, there are always cars that need a good washing. As such, a car wash business can also be a cost-effective small business idea. You can attract many clients by opening a car wash in a place conducive to trade, such as a busy city. Look for an open space for your shop and dealer to rent you professional car cleaning equipment.

Besides renting space and equipment, you run this business in its initial stages with very little capital. To gain more customers, however, consider physical marketing like brochures and discounts over the weekends.

18. Poultry Farming

A small-scale poultry business might be a good option if your family home has a homestead or you’re inclined towards animal farming. It can be a highly profitable small business enterprise in Kenya that can reach great heights if operated properly.

Before starting this business, you will need basic knowledge of animal husbandry and breeding tactics. However, these are pretty simple to learn if one has the right motivation.

Among the various kinds of chickens in Kenya, broilers and layers are more famous for their meat and eggs. The capital you need to invest in a poultry business depends on the birds you rear and the farm where they will be stored. Generally, you can start a poultry business with a capital ranging from Ksh 50,000 to 100,000.

19. Laundry Service

City and town dwellers are often too busy to deal with laundry every day. In such cases, setting up a laundry business is an excellent way of helping them with household chores while simultaneously earning huge profits.

Laundry service includes cleaning, sorting, and ironing clothes and other wearables at a fixed fee. You will need a washing machine, ironing supplies, and different detergents to set up such a service.

Moreover, opening your business in commercial and high-end residential areas is advisable where most people require external household services. Besides efficient marketing to build your clientele and create your brand’s presence, completing all necessary legal procedures for a valid business ID is crucial.

20. Start A Coffee Shop

Research shows a growing preference for coffee as a hot beverage among many Kenyans. You can utilize this social change and open a coffee shop serving various brews and snacks.

Starting a coffee shop is inexpensive, given the higher coffee production and market availability. Furthermore, it can be very lucrative if you set up your cafe on busy streets or near colleges and universities where the demand for freshly-made coffee is the highest.

All you need to do is rent a place for the shop, buy the coffee brewing equipment, purchase sitting arrangements and decor, and you’re ready to go. Besides investing in proper marketing techniques, you can open your shop with a budget ranging from KSh 3,000 to 5,000.

Moreover, you can gain additional profits from selling light snacks that complement your coffee. Either make these at home or purchase from local sellers at a lower price.

21. Gardening And Landscaping

If you’re passionate about plants and interior design, you can offer gardening and landscaping services to those buying new homes or renovating their old ones. Moreover, this industry does not have enough individuals or companies utilizing the growing demand, so there’s less competition.

Landscaping and gardening services include planting flowers and shrubs and re-designing and shaping yards. The main aim here is to give your customers’ yards and gardens an organized, appealing, and high-end look.

However, this job requires professional landscaping skills you need to learn before starting this venture.

To start, you can offer services at a smaller scale and slowly work your way up by hiring more employees as your business grows. This small business idea pays quite well, and you can build your brand further by taking photos of each landscape as you complete them.

22. Photography Services

Most people nowadays prefer booking freelance photographers to capture their special occasions. This has opened the market for many newcomers who undertake professional photography, often as a part-time gig.

All you need to do is take a professional photography course and invest in a good-quality camera. An ideal camera for photography can cost around Ksh 15,000.

Furthermore, you need to be consistent to build a strong portfolio showcasing your pictures. Doing so will help you bag more clients.

Ensure your availability on the weekends since most weddings, birthdays, funerals, and other functions are held at that time. And while you’re at it, build a good rapport with the clients so that they refer you to others when the occasion arises.

Final Thoughts On The Best Business Ideas In Kenya

New business opportunities are emerging every day, and with it, multiple openings for individuals aiming to start theirs. With the growing shift toward ecommerce business and trade, there’s a broader target market available for making good money.

However, to ensure the success of your venture, choose business ideas that best align with your skills, budget, and long-term commitment. Establishing and maintaining a business requires dedication and proper infrastructure; if you have that, nothing can stop you.

We hope our carefully curated list of 22 profitable small business ideas in Kenya will help you choose your calling. That said, we’ll be signing off now.

If you wish to read such informative articles in the future, stay tuned. Goodbye!

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