5 Profitable Small Businesses to Start in Kenya
Every global giant—whether in tech, retail, or manufacturing—once started as a small enterprise with limited resources. What sets successful businesses apart is the owner’s vision, resilience, and willingness to adapt. A positive attitude, persistence, and smart decision-making can transform a modest startup into an industry leader. In the end, it’s not just about the size of the business at the start, but the mindset driving it forward.
Published 6 months ago on February 5, 2025
By Charles Wachira
Start your business in Kenya with as little as Ksh 5,000. Explore five low-capital ideas, with full details on startup cost, registration, and support. From freelancing to second-hand clothing, Kenya’s low-capital business landscape is rich with opportunity. Ideal for youth, women, and first-time entrepreneurs.
Five Low-Capital Businesses to Start in Kenya in 2025
Starting a business in Kenya doesn’t require vast sums of money. With the right idea, persistence, and a bit of strategic planning, you can build a profitable enterprise on a modest budget. Below are five low-capital business ideas ideal for aspiring entrepreneurs in Kenya—each with registration steps, education needs, cost breakdowns, and support avenues.
1. 🧑💻 Online Freelancing in Kenya
Kenya’s digital economy is booming, thanks in part to the Ajira Digital Program and the national Vision 2030 strategy for building a knowledge-driven economy.
A 2021 KEPSA report showed that about 1.2 million Kenyans earned income from digital jobs. A 2024 ILO guide noted that digital entrepreneurship is now a key income source, especially for youth, persons with disabilities, and remote communities.
A Mercy Corps study projected a 33% annual growth rate for Kenya’s gig economy. As of January 2024, DataReportal reported 22.71 million internet users in Kenya, significantly above Sub-Saharan Africa’s mobile internet average.
Top freelancing jobs in Kenya include:
- Graphic design
- Content writing
- Social media management
- Video editing
- Virtual assistance
Popular platforms:
- Upwork
- Fiverr
- Toptal (for skilled coders/designers)
Startup Cost: Ksh 5,000–20,000
Registration: Sole proprietorship on eCitizen – Ksh 1,000
Education Requirements: Optional; free courses on Coursera, edX, Google Digital Skills
Assistance: Ajira Digital, KNCCI, ICT Authority
2. 👚 Mitumba (Second-Hand Clothes) Business
Kenya’s Mitumba sector is a backbone of the informal economy, supporting over 2 million jobs. Gikomba in Nairobi is the largest hub, but mitumba markets thrive countrywide.
According to KNBS, Kenya imported Ksh 27.82 billion worth of second-hand clothes in 2023—a 33.3% increase from the previous year. 91.5% of Kenyan households purchase mitumba clothing.
Sales channels:
- Open-air markets
- Facebook and Instagram
- WhatsApp groups
Startup Cost: Ksh 5,000–20,000
Registration: Business name on eCitizen; county permits
Education Requirements: None mandatory; TVET or business courses help
Support: MSEA, KYEOP, Youth Enterprise Development Fund
3. 🐓 Poultry Farming
Small-scale poultry farming is profitable in rural and peri-urban areas. Eggs and chicken meat are in high demand in homes, restaurants, and institutions.
Kenya consumes over 1.5 billion eggs annually, according to Tegemeo Institute. Indigenous breeds (kienyeji) fetch higher prices.
Startup Options:
- 50–100 layers or broilers
- Basic coop and feeding setup
Startup Cost: Ksh 15,000–50,000
Registration: Business name on eCitizen; county veterinary approval
Education Requirements: Short courses at Egerton University or Farmers Trend
Support: KALRO, YAP, County Agriculture Offices
4. 🍞 Home Baking and Cake Business
Kenya’s baking industry is thriving on Instagram and TikTok. Home-based bakers serve events like birthdays and weddings. Healthy and custom cakes are especially popular.
Essential tools:
- Oven
- Mixer
- Baking trays
Sales platforms:
- Doorstep delivery
Startup Cost: Ksh 10,000–30,000
Registration: Business name on eCitizen; food handler’s certificate from county
Education Requirements: Courses from Amari Baking Center, YouTube tutorials
Support: KNCCI, SMEP Microfinance
5. 📲 Mobile Money and Airtime Agency
With 66 million mobile money accounts (CBK, 2024), becoming an M-PESA or Airtel Money agent is a solid low-capital option. Services include deposits, withdrawals, bill payment, and SIM card registration.
Requirements:
- Partner with Safaricom or Airtel
- Small space or kiosk
- Reliable cash float
Startup Cost: Ksh 20,000–50,000
Registration: Business on eCitizen; apply via telecom dealer
Education Requirements: None; telecoms offer training
Support: Safaricom Business, Airtel Money Agent Program
In other news:Safaricom Ethiopia Crosses 10 Million Subscribers, Hits $1.2B in M-Pesa Transactions
5 Profitable Small Businesses to Start in Kenya