If you’re an entrepreneur looking to start a business in Kenya, you’re in luck! The country’s thriving market is full of opportunities for innovative and successful ventures. To help you get started, we’ve compiled a list of 60 new business ideas for Kenya’s thriving market in 2023.
From tech startups to traditional brick-and-mortar businesses, our list has something for every entrepreneur. These game-changing ideas are sure to help you tap into the potential of Kenya’s dynamic economy and stand out in a crowded market.
So if you’re ready to explore the latest trends and opportunities in Kenya’s thriving market, keep reading to discover the best business ideas for your venture.
Starting a business can be a rewarding and challenging experience, and the business landscape in Kenya offers a range of opportunities for entrepreneurs. With a GDP of $98.2 billion in 2020 and a projected growth rate of 5.5% in 2021, Kenya is an attractive place to start a business.
Entrepreneurship plays a crucial role in driving economic growth and creating employment opportunities, and there are many potential business ideas to consider in Kenya. The agricultural sector is a major contributor to the economy, accounting for about 25% of the country’s GDP and employing about 75% of the population.
The food and beverage industry is also significant, with the restaurant and catering sector alone employing about 3% of the population. The manufacturing sector is growing, with a target growth rate of 10% by 2022, and the use of the internet in Kenya is increasing, with an estimated 50% of the population having access in 2020.
In this article, we will explore some of the best businesses to start in Kenya, including those in the agricultural, food and beverage, manufacturing, services, retail and e-commerce sectors. It is important to carefully research and plan your business before getting started to increase your chances of success.
Budgeting For Your Business Ideas
It is difficult to provide a budget for starting a business in Kenya as the costs will depend on the specific business idea, location, and other factors. Some potential costs to consider when starting a business in Kenya might include:
- Rent or lease for a physical location (if applicable)
- Equipment, machinery, or supplies needed for the business
- Labour costs, including salaries or wages for employees
- Marketing and advertising expenses
- Legal and professional fees (such as for consulting, accounting, or legal services)
- Insurance
It is important to carefully research and plan your budget to ensure that you have sufficient funds to cover your start-up and operating costs. It may also be helpful to seek financial assistance or funding from sources such as banks, venture capital firms, or government programs.
Discover the latest trends and opportunities in Kenya’s thriving market and take your business to the next level. Explore our list of 60 new business ideas now.
Agricultural Business Ideas
Kenya has a strong agricultural sector, and there is potential to start a business selling locally-grown produce or processed agricultural products. The sector accounts for about 25% of the country’s GDP and employs about 75% of the population, making it a significant contributor to the economy.
Successful businesses in this sector could include a farm or greenhouse operation growing and selling vegetables, fruits, or herbs; a processing facility for producing value-added products such as juices or jams; or a distribution company connecting small-scale farmers with buyers.
For example, GreenHouse Agribusiness Solutions, a Kenyan company that provides greenhouse and irrigation solutions to smallholder farmers, has seen significant success in the agricultural sector. Another example is GreenGro, a Kenyan company that grows and sells a variety of vegetables using hydroponic technology.
Food and beverage
The food and beverage industry is always in demand, and there is potential to start a business in this sector. The restaurant and catering sector alone employs about 3% of the population in Kenya.
Successful businesses in this sector could include a restaurant or café offering local or international cuisine, a catering service for events or parties, or a food truck or kiosk offering quick and convenient meals.
For example, Artcaffe, a Kenyan chain of coffee shops and restaurants, has seen significant success in the food and beverage sector. Another example is Java House, a Kenyan company that operates a chain of coffee shops and restaurants as well as a catering division.
A strong emphasis on quality and customer service can also help to differentiate your business in this highly competitive industry.
Manufacturing Business Ideas
Kenya has a growing manufacturing sector, and there is potential to start a business producing goods locally. The government has set a target of a 10% growth rate in the manufacturing sector by 2022.
For example, Better Brands, a Kenyan company that produces and sells a range of household and personal care products, has seen success in the manufacturing sector. Another example is BIDCO, a Kenyan company that produces a variety of consumer and industrial products, including soap, cooking oil, and plastic packaging.
It is also important to consider factors such as access to raw materials, transportation, and infrastructure when starting a manufacturing business in Kenya.
Service Business Ideas
There is potential to start a business offering professional services, such as consulting, accounting, or legal services. Services businesses can be flexible and can be operated from a physical location or remotely.
Successful businesses in this sector could include a consulting firm offering advice to businesses or organizations, an accounting firm providing financial services, or a law firm offering legal representation. For example, Deloitte, a global professional services firm with a presence in Kenya, has seen success in the services sector. Another example is KPMG, a global professional services company with a strong presence in Kenya.
A strong emphasis on professionalism and customer service can also help to differentiate your business in this competitive industry. It is also important to consider factors such as competition, regulatory requirements, and professional certifications when starting a services business in Kenya.
E-commerce Business Ideas
The increasing use of the internet in Kenya presents an opportunity to start an online store or e-commerce platform. According to estimates, about 50% of the population in Kenya had access to the internet in 2020, and this number is expected to continue growing.
They include an online store selling a range of products, a marketplace connecting buyers and sellers, or a platform for booking services such as travel or events. For example, Jumia, a Kenyan e-commerce company that operates an online marketplace, has seen significant success in the e-commerce sector.
Another example is Safaricom, a Kenyan telecommunications company that operates a platform for booking travel and events as well as an online marketplace.
Retail Business Ideas
The retail industry in Kenya is a significant contributor to the country’s economy and has been growing steadily in recent years. It is supported by a large and diverse consumer market, with a population of over 50 million people and an increasing middle class.
The retail industry in Kenya is competitive, with both domestic and international retailers vying for market share. As a result, it’s important for retailers to have a clear understanding of their target market and a strong marketing and sales strategy to attract and retain customers.
Here are a few examples of retail business ideas that could potentially be successful in Kenya:
⦁ Online retail Business Ideas:
With the increasing use of the internet and mobile devices in Kenya, starting an online retail business can be a great way to reach a wide audience. You could sell a variety of products, such as clothing, electronics, home goods, or beauty products, either through your own website or through a platform like jiji or jumia.
⦁ Speciality shop:
If you have a particular passion for or expertise in a particular area, you could consider starting a speciality shop that caters to a specific niche. For example, you could open a bookstore that focuses on African literature, a pet store that specializes in unique pet supplies, or a home decor store that sells handmade crafts.
⦁ Convenience store:
Convenience stores are popular in Kenya and can be a good business opportunity for entrepreneurs. These stores typically offer a range of products, including groceries, household items, and personal care products, and are often located in busy areas such as shopping malls or near transportation hubs.
⦁ Supermarket:
Starting a supermarket can be a challenging but rewarding business opportunity. Supermarkets offer a wide range of products and often have a large customer base, but they also require significant capital and operational expertise to start and run.
⦁ Franchise Business Ideas:
Franchising can be a good way to start a retail business in Kenya, as it allows you to leverage the brand recognition and support of an established company. There are a variety of retail franchises available in Kenya, including fast food, clothing, and convenience stores.
These are just a few examples of retail business ideas in Kenya. It’s important to carefully consider your goals, resources, and target market when choosing a retail business idea to ensure the best chance of success.
Small Business Ideas in Kenya in 2023 with Little Money
- Mobile phone repair services.
- Computer repair and maintenance services.
- Graphic design services.
- Social media management services.
- Event planning and coordination services.
- Tutoring and teaching services.
- Freelance writing and content creation services.
- Selling handmade or unique products.
- Home-based catering services.
- Home cleaning and organization services.
- Landscaping and gardening services.
- Pet grooming and sitting services.
- Mobile beauty services (hair, makeup, nails).
- Personal training and fitness services.
- Life coaching and mentorship services.
- Marketing and advertising services.
- Virtual assistant services.
- Translation services.
- Online course development and teaching.
- Social media influencer.
- E-book writing and publishing.
- Car washing and detailing services.
- Handyman services.
- Personalized gift-making services.
- Voiceover artist services.
- Stock photography services.
- Food delivery services.
- Pet sitting and dog walking services.
- Online language tutor services.
- Virtual event planning and coordination services.
- Online store selling second-hand or vintage items.
- Personalized stationery and invitations design services.
- Personal shopper and styling services.
- Online store selling natural or organic products.
- Online store selling beauty and skincare products.
- Online store selling health and wellness products.
- Home-based bakery or pastry shop.
- Mobile car wash services.
- Selling traditional or speciality food products.
- Online store selling sporting goods and equipment.
- Custom furniture design and production services.
- Selling pet supplies and accessories.
- Personalized gift basket creation services.
- Selling unique home decor items.
- Personalized party planning and decoration services.
- Selling electronics and gadgets.
- Selling home appliances and tools.
- Custom jewellery design and production services.
- Mobile party entertainment services (e.g. face painting, balloon twisting).
- Selling musical instruments and equipment.
In conclusion, Kenya offers a range of potential business opportunities for entrepreneurs. The agricultural, food and beverage, manufacturing, services, and e-commerce sectors all have the potential for success, and it is important to carefully research and plan your business before getting started. It is important to consider factors such as market demand, competition, and regulatory requirements when starting a business in Kenya. With careful planning and hard work, it is possible to start and grow a successful business in Kenya.