Most Profitable Small Capital Business Ideas in Kenya 2021

Best Small Capital Business Ideas in Kenya

Are you looking for a great business idea? I’ll share with you small capital business ideas in Kenya you can start today.small capital business ideas in kenya

According to Richard Branson, an English investor and business magnate, ‘a big business starts small.’

So, if you want to ascend the Kenyan business ladder, you have to start small. Or let me put it this way – you have to start with the’ little money’ you have.

With anything between 1,000 and 100,000, you can start a small business in Kenya.

The secret is identifying a need in the Kenyan market and developing a way to fulfill it.

Well, that’s where I come in. I’ll discuss seven small capital business ideas in Kenya that you can start today.

Even better, I’ll give you the capital input for each business, and I’ll explain how you can get started and what to expect to make, where applicable.

Here we go:

Small Capital Business Ideas in Kenya

  1. Cleaning Service Business

Capital Input – Ksh 20,000

Have you heard about Alex Nyaga? He is the founder of Parapet Cleaning Service, one of the leading cleaning services in Kenya.

Interestingly, Mr. Nyaga only started his cleaning business with Ksh 10,000 not long ago. Now, the company makes millions and is a source of income for many women and youths in Nairobi.

When starting, Mr. Nyaga would hire women for Ksh 500 and charge clients Ksh 1,000 per house.

So, why don’t you borrow his idea and start a cleaning business in your hood? Who knows, you may come to make millions one day just like the Parapet family.

So, how do you get started with Ksh 20K? Since the clients will pay you, you don’t have to budget for the cleaners’ fee.

What you can budget for are their cleaning gear and cleaning essentials. That would cost you around Ksh 10,000.

You can then use the remaining money on the permit, flyers, and business cards.

Since you’ll want to reach a broader target market, you should take advantage of social media to create your business awareness.

Generally, it’s a smart idea to start with cleaning newly-constructed houses before you can explore offices and business premises.

  1. Selling Ladies Handbags and Shoes

Capital Input – Ksh 20,000

Ladies love trendy handbags, especially in major cities. They also love to wear the best shoes and are not afraid to pay more.

From college-going young women to the working moms, there is no shortage of prospective clients.

Are you wondering how you can start with only Ksh 20K? Well, you don’t have to own the stock.

What you need to do is approach a few suppliers in Eastleigh or any other business center. Talk to them about how you can pick the handbags and shoes on orders.

So, you only need to do the advertising and wait for the customers to make the orders. Once they do so, your job is to contact the supplier to have the product delivered.

Ultimately, the Ksh 20K will cover the advertisement and other minor expenses. Note that you’ll include your cut when quoting the prices to the customers.

Today, the most prominent marketing forum is social media.  Thus, take advantage of the opportunities that Facebook, Instagram, Pinterest, and other channels present.

You can even start an online store, which could cost you about Ksh 10K to set up.

  1. A Car Wash Business

Capital Input – Ksh 50,000

Most car owners prefer to pay someone to wash their cars than do it themselves.

We cannot forget the matatus guys and Boda Boda riders who form a big chunk of the daily customers.

So, why not start a car wash business in your hood? Besides, you can also use the machine to wash carpets, which means more customers.

Online, you can get a good car wash machine for Ksh 25,000-30,000 and lease a space for Ksh 10,000 a month.

That leaves you with about Ksh 10,000 to take care of the water fee and business permit.

After that, you’ll get your workers’ salaries and the lease fee from what you make monthly.

Depending on location, you can wash 10-15 cars a day, making about Ksh 200 per car. That’s roughly Ksh 2,000 – Ksh 2,500 a day.

Mark you; the projection excludes the carpets you’ll be washing, which you can charge Ksh 400-700 per piece.

  1. Second-Hand Clothes (Mitumba) Business

Capital Input – Ksh 1,000 to Ksh 50,000

Most Kenyans wear second-hand clothes, popularly known as Mitumba. So, if you are looking for a business with a ready market, think along the Mitumba line.

It’s among the most lucrative small capital business ideas in Kenya.

With anything between Ksh 1,000 and Ksh 50,000, you can buy a bail of Mitumba clothes at Gikomba or Muthurwa in Nairobi.

The best part is that you can make triple the capital input or make much more in sales.

Usually, each bale comes with three grades of clothes.

We have the first-grade Mitumba, popularly known as Camera clothes. The clothes are almost new, and so they earn you more in sales.

There is also the second-grade Mitumba, comprising slightly used clothes, and the third-grade (also known as Fagia), which includes clothes with minor defects.

If you can fix the defects on third-grade clothes, you can sell the outfits handsomely.

Most sellers usually get their money back after selling the Camera clothes. So, the earnings on the second grade and Fagia amount to profit.

There is a caveat, however, when it comes to the Mitumba business. Only the guy who packs the clothes from overseas knows what is precisely in the bails.

As a result, there is always the chance that you may get more defective clothes than the Camera type. So, it’s a risk that you have to take some time.

Also Read: Best Small Business Ideas In Kenya   best business ideas in Kenya with little capital

  1. Affiliate Marketing Business

How about you start a business that requires zero capital? I’m talking about affiliate marketing, which is all about earning commissions from product recommendations or referrals.

With excellent social media networks, you can earn from affiliate marketing in Kenya. That means you can recommend products to your friends on Facebook, Instagram, and WhatsApp or refer them to specific stores.

Some of the best Kenyan affiliate programs that you can join include Jumia, Kilimall, and Travelstart.

In Jumia, for example, you can earn a 13% commission on every successful referral, and you get about up to 8% on sales on Kilimall.

Both stores deal with electronics, furniture, clothes, baby products, home appliances, among many other household supplies.

You can also explore an international affiliate program like Amazon to make up to 10% commission on qualified sales.

The best part is that you don’t need a website to earn as an affiliate marketer on Amazon. That’s because you can use free platforms like LinkedIn and Medium to publish your content and recommend the products.

What I like most about affiliate marketing is that you make passive income. It’s more like making money while sleeping.

  1. Poultry Farming Business

Capital Input – Ksh 30,000

Kenyans are consuming poultry products everywhere. Form chicken meat to eggs, the market is there for the taking.

What are missing are enough suppliers. So, how about you supply chicken to the restaurants in town?

You can also supply eggs to the local shops and supermarkets or sell directly to customers at local farmers’ markets.

Starting a poultry business will not just provide you with an income source, but you’ll also offer others the same opportunity.

With Ksh 30,000, you can allocate 10,000 for the cage construction and feeding equipment. You can then get the birds for about Ksh 10,000, and the remaining Ksh 10,000 should be enough for the feeds.

Usually, the profit margin depends on the number of chicken and type.

You can keep layers if you want to sell eggs or broilers if your aim is chicken meat.

It’ll take a maximum of 12 weeks to sell them broilers, but layers take up to 18-22 weeks to start laying eggs.

It’s essential, however, that you source for the market beforehand to avoid any disappointments.

I recommend for marketing your poultry products, and you can also get day-one chicks there.

This is surely one of the best business ideas in Kenya with little capital.

  1. Hardware Store Business

Did you know that you can start a hardware store in Kenya with just Ksh 20,000? That’s right.

You only need Ksh 20,000 to rent a shop and apply for the business permit.

You are probably asking, ‘how do I get the stock?’

Well, most hardware store owners get their supplies on consignment deals. What it means is that you pay the suppliers when you sell.

Provided your store is registered, you’ll not have a problem getting the consignment deals.

Generally, the secret to succeeding with a hardware business is setting up the business in a prime location.

Find some space in a town setting, along a major highway, or a soon-to-be-developed estate or business center.

Depending on the order traffic, you can make up to Ksh 10K in profit daily.

In Conclusion

You now have seven fantastic small capital business ideas in Kenya. Hopefully, you can invest in one as soon as possible.

Who knows, it may be a step closer to becoming an influential Kenyan entrepreneur.

Also Read : How To Start a Milk ATM Business In Kenya

Yu Team

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