Nairobi is full of small businesses, from market stalls to online shops. The ones that last usually start small, keep costs low, and solve a problem customers already have. This guide covers common ideas and what each needs - not a promise of profit.
Questions to answer first
- Who will buy, and why from you? Visit similar businesses and watch who buys and what they pay.
- How much do you need to start, and to keep going for six months without profit?
- Where will you trade - premises, a market, online, or mobile?
- What licences apply? See below.
Use the budget planner and loan repayment calculator before you borrow.
Common ideas and what they need
Food businesses - cafés, food kiosks, bakeries, catering, juice and snacks. Need the county business permit, food hygiene licence and medical certificates for food handlers, and fire safety approval.
Retail - a shop, duka, cosmetics, phone accessories, clothes or mitumba. Need the county business permit, and care with suppliers - buy genuine goods and keep receipts.
Beauty - salons and barbershops. County permit and health requirements.
Services - cleaning, laundry, tutoring, photography, event planning, car washing, repairs. Often need little money to start; skills and reputation matter most.
Online businesses - selling through social media or a website, digital services, design and writing. See Freelancing in Kenya and Online shopping.
Transport and delivery - boda boda and delivery services. Need NTSA licensing, insurance and a good vehicle. See Car insurance.
Agribusiness - poultry, vegetables, and supplying hotels and restaurants, often on land outside the city.
The basics for any business
- Register a business name or company. See Registering a business.
- Get the county permit. See Nairobi business permit.
- Tax - turnover tax or income tax, and eTIMS invoicing. See Turnover tax vs income tax.
- Separate money - a business bank account or M-Pesa till, and records of every sale and expense.
Costs people forget
- Rent deposits and fit-out for premises.
- Stock you cannot sell - start with small quantities.
- Permits renewed every year.
- Your own pay - the business must cover your living costs eventually.