Starting a business in Kenya with a capital of Ksh.500,000 gives you a lot of opportunities in different sectors.
Whether you want to start a business in Nairobi, Mombasa, Nakuru, Kisumu, Eldoret, or any other town in Kenya, 500K is a substantial capital to set up a business that can generate a monthly income in the long run.
From service-based businesses to retail and agriculture, the business opportunities are diverse and ideal for people with different skill sets.
If you have a 100k capital, here are profitable businesses to start with 100k in Kenya.
Let’s explore the top profitable businesses to start with 500k in Kenya.
1. Boutique Clothing Store
A boutique clothing store is a promising venture, especially in the big cities and towns where working Kenyans are always on the lookout for trendy and unique outfits. With 500,000 KES, you can rent a space in a busy street or find a strategic shop upstairs and start selling clothes and shoes online.
Here is how the capital can be broken:
- 350,000 for stock (clothes, shoes, accessories)
- 100,000 for rent (first 3-6 months)
- 50,000 for branding and marketing.
Expected monthly income: Ksh.80,000 to Ksh.150,000, depending on location, market demand, and marketing campaigns.
You can also focus on a specific niche, such as women’s fashion, men’s wear, or children’s clothing. The startup capital will cover initial stock, shop fittings, branding, and marketing to attract foot traffic or online shoppers.
To succeed in the clothing business, you need to build strong relationships with customers and suppliers, and maintain a unique collection of clothing and shoes that appeal to your audience.
2. Laundry and Dry Cleaning Business
A laundry and dry cleaning business is highly profitable in areas with a large population of working class professional with little time to do laundry at home. The service industry is continually growing, and with the right location and good customer service, the business can generate steady monthly income.
Here is how the capital is broken down:
- 300,000 for equipment (washing machines, dryers, ironing boards)
- 100,000 for rent (first 3-6 months),
- 100,000 for salaries
Expected monthly income: Ksh.50,000 to Ksh.100,000, depending on the location and the volume of customers.
You will need industrial-grade washing machines and dryers, an efficient water supply system, and detergents. You may also want to consider offering pickup and delivery services for added convenience, which can help you stand out from competitors.
A strategic location near residential areas, offices, or estates ensures a constant stream of clients.
3. Car Wash Business
A car wash business is a low-risk venture with high returns, especially in busy urban areas where people rely on their vehicles for daily commuting.
With 500,000, you can start a car wash business with high-pressure machines, a water tank, and cleaning supplies.
This capital can be broken down as follows:
- 250,000 for high-pressure machine, water pumps, and cleaning supplies.
- 150,000 for rent (3-6 months)
- 100,000 for licenses and salaries
Expected monthly income: Ksh.50,000 to Ksh.120,000, depending on the number of cars washed daily and the additional services offered
You should set up the business in a location with high vehicle traffic, such as near a gas station, a shopping center, or a busy road. You can also add extra services like interior detailing, waxing, and engine cleaning to boost your income.
Related: Weird Business Ideas That Made Millions
4. Salon and Barber Shop
Personal grooming is a necessity for employed and unemployed people, and executive salons and barbershops are always in demand in the major cities and towns.
With 500k, you can set up a well-equipped salon or barber shop in a high-traffic area, and purchase quality equipment like hair dryers, washing sinks, barber chairs, and grooming supplies.
The capital is broken down as follows:
- 200,000 for equipment (dryers, clippers, sinks)
- 150,000 for rent and shop fittings.
- 150,000 for salaries and buying grooming products
Expected monthly income: 50,000 to 120,000, depending on location and customer retention.
Offering additional services such as manicures, pedicures, and hair treatments will attract more clients and boost your revenues. You should hire skilled and experienced staff who can provide excellent services to build a loyal customer base.
An executive salon and barbershop in a residential or busy street can see significant returns, especially with regular clients.
5. Event Planning and Decoration Services
Event planning and decoration is a lucrative business that caters to the growing demand for weddings, corporate functions, and parties. With 500k, you can purchase essential decoration materials such as tents, tables, chairs, and floral arrangements.
The capital is broken down as follows:
- 300,000 for decoration materials and equipment
- 100,000 for transport and marketing
- 100,000 for staff salaries or additional help for events
Expected monthly return: 80,000 to 200,000, depending on the number of events and your pricing structure
Marketing your business through social media can help you attract clients. You can also partner with catering companies, videographers, photographers, and entertainers to offer a comprehensive package.
Weddings and corporate events can bring in substantial revenue, and repeat clients or referrals are common in this industry, leading to consistent growth.
Related: Profitable Products to Sell Online Now
6. Poultry Farming
Poultry farming is one of the most profitable agribusinesses in Kenya, with demand for chicken and eggs increasing every day.
You can focus on broilers (for meat), layers (for eggs), or dual purpose birds (for both meat and eggs) depending on your target market.
With 500k, you can set up a poultry farm with around 300-500 chickens, to ensure you have adequate capital for feeds, housing, wages, and veterinary services.
The capital is broken down as follows:
- 250,000 for chicks and feed
- 150,000 for poultry housing
- 100,000 for salaries and miscellaneous expenses such as vaccination and veterinary services.
Expected monthly return: 50,000 to 120,000, depending on the scale of production and market demand.
Poultry farming has good returns, since layers can sold for meat in just 6 to 8 weeks, while layers will produce eggs by the fourth month, and continue laying for the next two years. Once the production for eggs starts decreasing, you can sell the chicken for meat.
Explore the best poultry housing designs in Kenya
7. Real Estate Agency
Kenya is experiencing a real estate boom, and it might to a good time to get a piece of the cake. With many people looking to buy or rent a home and commercial spaces, you can start a real estate agency to connect buyers and renters to property owners.
You’ll need a small office and a strong marketing strategy, which includes social media, property listing websites, and networking with property developers. You can offer property management services and property valuations to boost your income.
The 500k capital is broken as follows:
- 200,000 for office setup and rent.
- 150,000 for marketing (branding, transport, Social Media Ads, and Google Ads.
- 150,000 KES for staff salaries and licensing.
Expected monthly return: 100,000 to 250,000, depending on the number of properties sold or rented.
Real estate agents typically earn commissions for each property sold or for rents collected on behalf of property owners, which can be substantial for prime properties.
8. Catering Business
Catering services are in demand for weddings, corporate events, and parties, and you can start by offering catering for small to medium-sized events and grow over time.
The key to succeeding in the catering business is offering high-quality food, excellent service, and good customer relationships. You should invest in the right cooking equipment, food transportation, and hiring skilled chefs to ensure your business flourishes.
The capital is broken down as follows:
- 300,000 for kitchen equipment and supplies
- 100,000 for transport
- 100,000 for marketing and staffing
Expected monthly revenue: 80,000 to 150,000, depending on the size and frequency of the events catered.
With regular bookings, especially during wedding seasons, the business can grow quickly and event establish a restaurant to serve daily customers.
9. Gym and Fitness Center
With more people becoming health-conscious and wanting to get physically-fit, a gym or fitness center can be a profitable venture.
With 500,000 capital, you can rent space and buy essential gym equipment such as weights, treadmills, and exercise bikes. You can also offer fitness classes like aerobics, yoga, and personal training to increase revenue.
The capital is broken down as follows:
- 300,000 for gym equipment
- 100,000 for rent and setup
- 100,000 for marketing and staffing
Expected monthly return: 80,000 to 200,000, depending on membership numbers and extra services like personal training or group classes.
Gyms located in residential or busy commercial areas with high foot traffic tend to attract more clients, which can greatly increase your revenues.
10. Photography and Videography Business
You can start a photography and videography business focusing on events such as weddings, corporate functions, and portraits. You will need a good camera, lighting equipment, and editing software.
With the growth of social media, many content creators, influencers, and businesses are constantly on the lookout for professional photography and videography services to boost their online presence.
The capital is broken down as follows:
- 300,000 for professional cameras, lenses, and equipment
- 100,000 for editing software and laptop
- 100,000 for marketing and transport costs
Expected monthly income: 50,000 to 200,000, depending on the number of events attended, bookings, and photo shoots.
Weddings and corporate events are especially profitable for photographers and videographers, and clients are willing to pay premium prices for high-quality work.
Related: Most profitable businesses to start with 50k
11. Juice Bar and Smoothie Business
The health-conscious trend is growing, and opening a juice bar or smoothie shop is a profitable business idea. With 500k, you can set up a small juice bar in a busy area, such as near gyms, offices, or shopping malls.
The capital required is broken down as follows:
- 250,000 for equipment and stock
- 100,000 for rent and shop fittings
- 150,000 for marketing (including branding)
Expected monthly returns: 50,000 to 120,000, depending on the location and sales volume
You can offer a wide range of fresh juices, smoothies, and healthy snacks. Marketing your business as a healthy alternative to soft drinks will help attract health-conscious consumers.
You can also offer seasonal promotions and unique flavors for health-conscious clients to boost sales and create repeat customers.
12. Bakery Business
Baking is a profitable business, especially if you focus on supplying baked goods to local supermarkets, shops, or directly to customers. You can specialize in bread, cakes, pastries, and snacks for events, which are always in high demand.
With the 500k capital, you can rent a bakery space in a busy street or residential area, purchase ovens, mixers, and other baking equipment, as well as ingredients for your first batches.
Here is a breakdown of the capital:
- 300,000 for baking equipment and ingredients
- 100,000 for rent and shop fittings
- 100,000 for marketing and branding
Expected monthly income: 60,000 to 150,000, depending on sales volume and the types of baked products offered.
You can market your products through social media, events, and word of mouth to attract more clients. Don’t forget to target birthday parties, weddings, and corporate events, which provide a good market for your products.
13. Fresh Produce Supply
The fresh produce business is an evergreen opportunity, especially due to the growing demand for organic fruits, vegetables, and herbs.
With 500k, you can start a fresh produce supply business supplies households, hotels, and restaurants. This business works well in urban centers where many people rely on fresh markets for their daily grocery needs. You can also set up stalls at food markets and offer home delivery services for added convenience.
The capital is broken down as follows:
- 300,000 for initial stock
- 100,000 for transport
- 100,000 for securing a market stall or shop
Expected return: 60,000 to 100,000, depending on the volume of sales.
The fresh produce business benefits from repeat customers, especially if you can provide high-quality produce at reasonable prices. If you have a good supply network or you are getting fresh produce from your farm, you can build good customer relationships and grow the business quickly.