Starting a profitable business in Kenya is often capital-intensive. Many young people are turning to small-business ventures to help them remain afloat amidst the economic crisis and high unemployment rates.
Here are some of the most profitable businesses to start with a capital of between Ksh20k and Ksh30k
Personal Lending
This business is profitable especially when risks are minimized. Starting your lending to colleagues, families, friends, and acquittances at a rate of 6% to 20% can help keep the risks in check. Agree on a refund deadline and a fine for those who do not honor the deadline.
Keep financial records of those you have lent, stating the amount of money, contact information, accrued fees, and repayment deadline.
Include paperwork for signature to acknowledge receipt and commitment to paying back at a rate. Lending to small business enterprises (SME’s) might increase your returns. You can lend for a few days, a week, or a month and evaluate your performance portfolio like the default rate compared to returns, bad debts, and fees due.
It’s better to do a site visit to your client’s business location and asses its stock value and the expected revenue before lending.
Selling Mitumba Clothes
Selling secondhand clothes or mitumba is becoming popular among young people as it can generate profits quickly. The idea is to select fast-moving merchandise like ladies’ official outfits such as blazers and attractive children’s clothing. The trick with this business is not to leave your money tied down in stock for long.
You can decide to iron the clothes to add value and increase your chances of quickly converting your stock into cash.
The Gikomba market is a good place to start buying secondhand clothes at a cheaper price and reselling them to your clients at a profit.
Create a routine of visiting your clients in offices and homes to enable restocking every week. This will also cut the costs of renting a stall. You can store the stock at home or look for a secure and strategic location to rent for less than Ksh9000.
Related: Most profitable business for women in Kenya
Freelance Printing
It’s always advisable to start small and keep learning the ropes as you grow with the business.
In the freelance printing business, your major task is to scout for clients with printing needs, you can start with printing documents like brochures, delivery books, business cards, ceremony programs, and wedding cards, you can also outsource for these jobs and offer your clients a higher quotation.
Daycare
Parents are getting busier and have limited time to keep up with their children. House helps are becoming unpredictable with lots of child abuse cases making parents worried for the safety of their kids at home under the care of nannies.
Small businesses offering children’s services are making a fortune by stepping in to help parents take care of their children at a fee.
You can approach parents with non-schooling children between 1 year and 3 years. Explain your services to parents and how well you can look after their children at a fee.
You do not need a big space; your house is enough for the start. Source for secondhand toys and find activities to keep the children busy. Set time to feed and wash them, you can hire an assistant to help keep up with the demands as they arise.
Agree on the exact time of picking up and dropping off the children by the parents, any special needs, and the daily fees charged.
Event Planning
In the events organization business, marketing is extensive at the start and requires a great deal of time to get the word out there about the services you are offering.
Couples planning to wed, churches with fundraisers, parents with birthday parties, organizations, businesses, and companies with special events such as annual general meetings, product launches, and executive parties are always on the lookout for event organizers and that’s where you come in.
Individuals and organizations are ready to pay you handsomely to help take away from them the headache of planning and organizing their events.
Remember, when working with a company, you might require good background knowledge about their products and target market. You can always get this information from their website or human resource office.
You will need to do thorough marketing of your services. Activate viable networks to advertise your event organization expertise. You can start by word of mouth to your family and friends, the quality of your work and marketing will attract potential clients on your way.
The above-highlighted profitable businesses can easily be started for Ksh20000 depending on your business setup. If you don’t have access to huge starting capital, consider some of these small business ideas from Kenya.
Cleaning Services
Many businesses are outsourcing cleaning services for their office buildings and work uniforms. You can make good money by setting up a cleaning services business which is one of the easiest to start. You can buy brushes, detergent, buckets, moppers, bins, and dusting rags and you are ready to go.
Look for potential clients who want their premises cleaned. Approach professionals such as doctors, businessmen, lawyers, or engineers and offer to clean their offices on select days at a fee.
Market your business in residential areas like homes and ask to clean their carpets and laundry, this will grow your client base and employ more cleaners to your business.
Check out what business to start with 50K
Errand Services
Juggling between long hours of work, cooking, and children’s responsibilities at home is just leaving a lot undone and that’s why people in urban areas are opting to pay for someone to run their errands like paying bills, shopping, dropping and picking dry cleaning and posting and collecting letters, etc.
While the majority of middle-class people are busy and don’t have time to wait in long queues for hours, you can offer services like a renewal of their driving licenses, passport applications, collection, business permits, and grocery delivery. Surprisingly, you will only require a cellphone and confidence to pitch your business to those who need your service.
This business idea is profitable through creating relevant networks and socializing with civil servants working in government offices such as Huduma Centers, Kenya Power, NTSA, and Kenya Revenue Authority, Posta among others. This will help speed up your service delivery.
Errands business will require a high level of confidentiality, clients will entrust you with valuable items and documents and it’s your responsibility to build and develop that trust. If you do a good job, word will spread and clients will keep coming.
