The best business in Kenya to start in 2016 requires an understanding of the real customers you want to target. Every business person or entrepreneur knows that starting a business requires a lot of sacrifice too in order to grow their businesses. Determination, know-how and motivation are also essential in benefiting any Kenyan start-up.
Before starting any business and making it the best business in Kenya, it is imperative that you identify a gap or rather an opportunity in the market. This is very practical as it helps you organize resources, build on a plan and lay out a strategy to maximally enter into a given market.
The best business in Kenya opportunity may at times not be the most profitable business. An analysis of the same is needful in ensuring that a business grows to success.
Kenya’s economy is one of the fastest growing economies in Africa. According to the latest Kenya Economic Update (KEU) published by the World Bank, Kenya’s economy is projected to rise up to 6-7 percent in the next three years (2015-2017). This only alludes to a bright future for investors who are able to tap in to the needs of the economy. Start-ups are partly the reason for this growing economic success in the country.
It therefore means that with a fitting or desirable idea, one can precisely target a good share of this growing market.
Here are the best business in Kenya that are likely to be in demand than others.
- Real Estate market is a booming business in Kenya today
The latest statistics by Hass Property Index shows that land prices have grown to more than 535% since 2007. This figure is a clear expression of just how worthwhile the real estate industry has grown. The good news here is that these prices are expected to continue rising even higher as more people look out for houses to rent/buy and others look out for other commercial properties countrywide.
With devolution, this industry has expanded even to the local markets where offices and other properties are sought for county development purposes.
Investing in real estate in Kenya must not necessarily require a lot of capital. For starters, you can acquire cheap land around major towns (or county headquarters in this case), then wait for some little time to allow the area to develop. Before it is long enough, you will be surprised to find that the land has appreciated even 10 times the initial price you bought it.
Outside Nairobi City, the average land prices range between Ksh 100,000 and Ksh 200,000. In a few years, the same land will have appreciated to between Ksh 500,000 and Ksh 1,000,000.
- Agribusiness – Value Addition in Agriculture is one of the best business in Kenya today
The truth is that we need food every day to live. The rising population in the country is a potential market for the agricultural industry. Feeding this rising population requires one to be more of a producer. This is very fundamental in any place. Moreover, Kenya’s economy is still agriculture-based. A sure pointer that agriculture is still an economic giant in the economy.
Agribusiness is continually providing many people with profitable ideas of changing raw products into finished good. This in its actual sense is known as value-addition.
Many people have realized the need of joining production to value-addition. The aim here is to maximize profits from a small farm.
Take for example a farmer who leases some fertile land in Kiambu County – just near Nairobi City. He/she then plants tomatoes and after three months, the tomatoes are ready for consumption. The farmer may sometimes (and in many cases) sell the tomatoes at a cheaper price – below the cost of production.
The farmer however has many options other than selling his/her tomatoes to immediate customers. The farmer can choose to process the tomatoes to finished products like tomato sauce among others. This will surely maximize his/her proceeds.
So instead of just selling milk direct from your cow, you can turn it into other products like mala or yoghurt. Instead of selling passion fruits fresh from the trees, you can change them into juice or other beverages. Even for bananas, you can fry them and make crisps and cakes to boost your sales.
Starting an agricultural venture can be as low as Ksh 50,000 depending on location of a farmer.
- The ICT Industry has one of the best business in Kenya opportunities available today.
This is yet another booming area of interest in Kenya. Technology is surely changing lives in Kenya and around the world.
How about tap into this rich niche and offer content creation services to numerous clients around the world? Business outsourcing is yet another area that many people have not realized as a major boost in ICT industry.
As a business start-up, you can start by creating content for websites or even building your own website and monetizing it. You can also create websites and sell (if you have the skills in webhosting and web creation), start a social media consultancy or start an online (virtual) coaching or tutoring venture.
Apart from this line of thought, you can rent a room in a well researched area/location – somewhere you can actually get clients then start a cyber.
Such ventures are mainly beneficial if you have some basic knowledge in ICT or computers in this case. A start-up capital of Ksh 100,000 is enough for this industry depending on the scope and location of the business.
- Cleaning Services is one of the best business in Kenya
Believe it or not, many offices, homes and even other areas such sport clubs need cleaning at least once a day or so. Employing cleaners to do this work is an old-fashioned way. Many companies today cleaning companies to carry out any of such cleaning requirements in offices and other premises.
As an entrepreneur, you can start by offering cleaning services to homes and areas around your residence. Of course you will have to register your company so as to attract the trust of your clients.
Starting a cleaning service company requires that you find and really retain almost all your clients. If you have skills in mixing detergents, you will probably save a lot in operations cost.
- Consultancy Services is one of the best business in Kenya
Starting a consultancy business may require specific skills and knowledge in a given area of interest and of course some years of experience. Many people are in search of such services, especially those that lack skills in the same fields.
For instance, a business owner may require your services in dealing with accounting procedures in his or her business. If you are an expert in this field, then you already have a market gap to fill. You can actually merge consultancy and coaching or training. If professionally carried out, consultancy and training can bring forth very valuable returns within few months of operation.
- Courier Services is one of the best business in Kenya
As the transport industry gets flooded day by day, many other gaps are created in the transport industry. If you are one trusted person who can pick and deliver good from one end to another, then courier service provision is your next business to build. In the current working conditions, some people rarely get enough time to even go shopping.
Starting an errands service nearby your residence would also be a brilliant business idea. You could actually start by offering such errands like going shopping and the likes, then gradually grow to offer courier services countrywide.
- Mitumba and Second Hand Sales is one of the Best business in Kenya
Mitumba business is estimated to be very lucrative especially in upcoming towns and even in major cities. The lower class is gradually moving into the middle class. With this as the base to target, starting a mitumba business targeting the middle and lower classes can be very beneficial and profitable. There are two main options here; you can choose to import the mitumba stuff or still buy from distributors. Whichever option you go for, there are high chances of getting some good returns if you target the right market with your products. Among popular mitumba stuff that are highly sought for are women/ladies clothing, women/ladies shoes, men shirts and t-shirts, men shoes, children clothing and bedding. With a good market research, capital of Ksh 20,000 is a workable starter.
- Cereals Sales is one of the Best Business in Kenya
Little is known of the treasure that lies in being a distributor in the long chain of production. To those who already read and mastered the hint of building from this idea, it has actually proven to be successful. Farmers are sometimes left with few options when it comes to disposing their produce (in this case when the storage costs are too high for them). A quick survey by many distributors has always shown that when farmers reap their produce, surplus production is majorly disposed so as to eliminate the possibility of losing everything. At such times, the prices of such produce are generally too low.
As a business person, this is the right time to buy (in bulk) the produce and store them awaiting sale. If properly planned, selling of cereals can actualize a business empire’s dream.
Take for example many instances where maize farmers produce more than they can sell at the same time in the Rift Valley regions. During these times, the prices of maize and other cereals are so low. You can take advantage of these periods to stock just enough to help you start a cereals shop business.
Moreover, you can choose to buy directly from the farmers, stock the produce for sometime then later sell at relatively higher prices.
- Childcare Centre is one of the best business in Kenya
The rising middle class community is a busy lot. The working class is surely a busy class that wakes up so early and return home so late, sometimes even as late as seven or nine o’clock. Employing nannies to take care of children or even the thought of leaving behind a stranger at home with their children is sometimes a great worry. This busy working class would rather have their children taken care by professional childcare centres than entrust an individual.
If you have love for little children, you could open up a childcare service centre where you take care of the children on behalf of the parents. Parents pay handsomely to have their kids properly taken care of.
Starting this kind of business requires one to acquire a space (room) where the children can play (it could be an open field in the neighbourhood) and possibly some legal documents to ascertain who you are – for trust issues.
10. Bakery Business is one of the Best business in Kenya
Starting a bakery is a very wonderful idea. If you are staying in a place where majority like buying bread, cakes, pies or such baked items, you have a rich market to reach out to. Before deciding to set up a bakery, you must have it at the back of your mind that you’re dealing in perishable items. You must therefore have a market that you are sure is reliable enough to buy your products. Forming wondrous connections and satisfying your customers’ needs and tastes should help you gain recognition in your local area of location. Maintain your business name, etiquette and image by giving the best services to your customers.
This is our list of the best business in Kenya to start for 2016.
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