(Our Top 10 Picks) List Of Most Profitable Businesses In Kenya 2021
Are you wondering what type of business you should start this year that will bring you some money? If yes, then worry no more because this informative article will guide you on the step by step list of the most profitable businesses in Kenya, you should start.
However starting a business is not easy even though it may be one of the best decisions you can make, regardless of your employment status. It is a good way to make money, and the possibilities and benefits are endless.
And with Kenya being one of the most rapidly developing African countries, it is one of the best countries to invest in a business right now in Africa.
If you are thinking about becoming an entrepreneur, here is a list of the 10 most profitable businesses in Kenya you can venture into.
Most Profitable Businesses In Kenya
1. Selling Snacks Business
The snack business is not only relevant (seeing as everyone needs to eat), but it is also quite versatile as there are no limitations as to the variety of snacks you can sell. If your customers enjoy it and you can prepare it, then you can sell it.
Your menu can contain anything from mahamri, soft chapatis, cakes, smokies, boiled eggs, mandazi, and samosas, which you know your customers will enjoy with relish.
However, although the other snacks are enjoyed by people, the most loved snacks are smokies, boiled eggs, samosas, and sausages, which are enjoyed by all types of Kenyans alike.
As a matter of fact, most snack sellers have made a fortune from selling the above-mentioned snacks, due to the fact that it is in high demand by loyal customers who can’t get enough of them. Selling these snacks have been categorized as a quick source of income.
So, if you are looking to go into the snack selling business, it advised that you go into making any or all of them, then combine them with other snacks and drinks.
You can easily start with a capital of Ksh 5,000 if you want to do business on a small scale. But if you want to go bigger, then the capital of Ksh 150,000 should be enough.
Smokies, sausages, samosas, and eggs business is a good business to run in Kenya. The lowest profit you can make from it as a small business owner is between 200-700 Ksh per day. But for some wholesalers, it can run into Ksh 25,000 per day.
The smokies and egg business alone is nothing short of a golden goose as you can make a lot of profit selling them. It is a type of business where you spend little and earn a lot. Below is the breakdown:
When you buy a packet of smokies of 22 pieces for Ksh 330, which means each piece goes for Ksh 15. When you sell a piece at Ksh. 25 you automatically make a profit of Ksh. 10. And if your shop happens to be located in a populated area, you can get very high returns.
If you manage to sell five packets a day, with each packet containing 22 pieces you would have sold a total of 110 pieces. If you sold a piece for Ksh. 25 you make Ksh. 2750.
The expenses you used that day are averagely 330*5=1650 Ksh. Plus Kambuchari cost which is Ksh. 100 for tomatoes, onions, and dhania, this adds up to Ksh 1750. Total profit from that sale will add up to Ksh. 2750-1750=1000. Simply put, you’ll make up to 1000 a day, from selling smokies alone.
Your profits could skyrocket if you decide to combine it with selling eggs as well. If you sell an averagely of 2 trays of eggs per day. That is Ksh.60, which each egg costing Ksh. 20, you will make Ksh.1200 a day. The expenses involved in eggs per day are Ksh. 600 for two trays of eggs. That means the profit you make in a day for eggs is for Ksh.600.
2. Resale Of Second Hand Clothes
It’s one of the prevalent and top businesses in Kenya and has employed a vast majority of the Kenyan populace. At this age where fashion and style people e have become conscious of, demand for affordable clothes has shot up in parallel measures.
This is evident by the mammoth of people who frequent the Gikomba and Muthurwa market and thereafter resale these second-hand clothes at a profit. The main advantage of this business is that you can begin with as little as kshs. 500 and then grow progressively.
3. Garbage Collection Business
Following the devolution of garbage collection by the county government, private companies can now offer this service to residents in estates and towns. If you were thinking about starting a business, you might want to get in on the garbage collection business.
And since it is not yet overcrowded, there is good money in it, due to less collection. Also, the future of garbage collection looks bright as more and more real estate companies want to develop properties out of main towns. This means that there will be more houses to offer services to.
The first thing you need to do would be to go to a few houses and agree on a price to collect from them. Maybe Ksh.150 each month and then you are ready to start.
4. Cosmetics or Beauty Boutique
This is a special interest for the feminine gender who day in day out wants to pull the best look. The primary target when setting such a business are women since majorly you will be selling their products. This explains why a woman would stop another on the streets just to ask where they bought that weave, lipstick earring, and so on. They would then proceed to hunt down that particular beauty product from the stores.
5. Events Planning
Kenyans love to party. Apparently, there has been an increase in ceremonial events. The boon is that this calls for so much, tent making, seat purchase, food preparation, decoration, emceeing, DJ among other complementary products that a party would call for. If you begin organizing events for other people one can make a fortune. Consider the anniversaries, weddings, birthdays, dowry payment ceremonies just happening every week.
6. Barber Shop/Salon
For ages, this business has been considered to be for the less educated because it’s majorly based on skill. Well, this business is one of the most lucrative and whereby one can make quite some money from it. Television and westernization have made use make sense of our appearances and this look is maintained or made fresh in this business.
For a salon one can begin with completely no penny make money from house calls then buy equipment and rent out space much later.
7. Mobile Money Transfer Shops And Bank Agents Business
The mobile money transfer practice is here to stay, which means that mobile money shops like Airtel and Mpesa are also going to stick around for a long time. So is Kwa Jirani, KCB, and Equity agents.
The mobile money transfer business is a very hassle-free business to start. Just have money in your account, a good location with human traffic, and rent a secure shop. You could start with Mpesa shop and then gradually move to other services as well.
Mpesa is the most lucrative mobile money shop you can start and venturing into this business, automatically makes you an agent for Safaricom which is the largest mobile money service provider in Kenya.
8. Butchery Business
Meat is a delicacy to most Kenyans, and the high demand for meat, makes butchery lucrative, so there is a possibility that you can succeed in this business.
You can either do small scale by selling in small parts to customers, or you can go large scale and sell in bulk to restaurants, hotels, and other business ventures that use meat.
The capital for starting butchery depends on the location and size of your shop. In low-income areas, a shop goes for about Ksh.100,000, in middle-income areas Ksh.200,000 to Ksh.500,000 and in high-income areas Ksh.500,000 to Ksh.1,000,000.
It is advisable that you have your shop situated in an area with high human traffic like a bus terminal or a busy street.
9. Poultry Farming
Away from white-collar jobs, one can get a little dirty and make millions. Poultry farming requires less space and inputs especially if on own farm. In the urban areas, one can supply chicken and chicken products that are in high demand. Ideally, the two types of chicken one would consider farmings are the layers for eggs and the broilers for meat.
10. Real Estate
This boils down to the sale and purchase of land, buildings, and developing land. This is probably one of the most profitable businesses one can venture into. The high population growth has made a demand for residential housing units come in less supply which makes the prices go up in a free economic environment. Besides, the value of these assets is always appreciating making it one of the best business ideas in Kenya today.
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