Best Cities and Towns in Kenya to start Business with little Capital and earn a huge Profits

Kenya is a resource-rich country with a wide range of economic options. As a result, it has become a hotspot for entrepreneurs looking to launch new ventures.

However, some areas provide more opportunities than others, and others require less capital to get started. In this post, we'll look at  the best cities and towns in Kenya to start a business with little capital and earn huge profits

Why Start A Business In Kenya

Kenya could be the ideal location for an entrepreneur wishing to launch a firm. Kenya is an excellent country to start a business for a variety of reasons, including:

●        Strategic location: Kenya has a strategic location in East Africa, making it an attractive business center for the region. It connects to a number of countries, including Uganda, Tanzania, Rwanda, South Sudan, and Ethiopia.

●        Growing economy: Kenya has one of Africa's fastest-growing economies. It boasts a thriving private sector and a favorable business climate, which draws investment. With a median age of 19 years, the country has a young and expanding population, which gives a great opportunity for enterprises targeting the youth market.

●        Support from the government: The Kenyan government is committed to assisting entrepreneurs and small enterprises. It has enacted a variety of laws and efforts to encourage entrepreneurship and help businesses, including tax breaks, training programmes, and access to capital.

●        Access to finance: Access to money is a major barrier for Kenyan entrepreneurs, but there are several choices available. Commercial banks, microfinance organisations, and angel investors are among them. In addition, the government has established funds to assist startups and small businesses.

●        Diversified sectors: Diversified sectors: Kenya's economy is diverse, with several different industries offering investment opportunities. Agriculture, industry, tourism, technology, and real estate are among them.

●        Favorable business environment: Kenya has a favourable business environment, with a fast registration process and a tax policy that is friendly. Kenya was placed 56th out of 190 countries in terms of ease of doing business in the World Bank's Doing Business 2021 report.

Best Cities and Towns in Kenya to start business with little capital and earn a huge profits

Nairobi

Nairobi is Kenya's capital city and one of the most active cities in East Africa, as well as one of the best cities and towns in Kenya to start a business with little capital and make a lot of money.

It is home to various global corporations and is a good and perfect environment for entrepreneurs to launch a business. With a population of approximately 4.4 million people, the market for products and services is huge.

Online businesses, agribusiness, real estate, handcrafted goods, barbershops, and many other successful businesses can be started in Nairobi. 

Mombasa

Mombasa is Kenya's second-largest city and ranks second among Kenya's top cities and towns for starting a business with little capital and earning significant profits.

Mombasa is a seaside city with a thriving tourism economy. However, the city also provides a variety of business opportunities, such as agriculture, fishing, tourism, and manufacturing. Mombasa has a lower cost of living than Nairobi, making it a great spot to start a business.

There is a significant demand for goods and services in this city of over 1.2 million inhabitants.

Tourism-related enterprises, shipping and logistics, food, handmade crafts, and a variety of other profitable businesses to start in Mombasa are just a few examples.

Kisumu

Kisumu is a city located in Western Kenya that is known for its agricultural industry. The city offers various business opportunities in the agriculture, retail, and manufacturing sectors.

The cost of living in Kisumu is relatively low compared to Nairobi, making it an excellent place to start a business.

Nakuru

Nakuru is a lively town in Kenya's Rift Valley region. The town is the country's fourth-largest cities center and has recently become a centre of economic activity.

In recent years, Nakuru has undergone rapid economic expansion. Agriculture, manufacturing, and tourism drive the town's economy. The local government has made major infrastructural improvements, making the town an appealing business location.

Nakuru's strategic location along the Nairobi-Nakuru highway makes it a vital transit point for commodities and passengers. The town is also close to the major tourist site Lake Nakuru National Park.

Eldoret

Eldoret is a town located in Kenya's western region. The town is a significant commercial and industrial center with a thriving entrepreneurial culture.

Eldoret is located near the Ugandan and other East African borders. This makes it a vital transit hub for products and people, as well as an opportunity for enterprises looking to develop beyond Kenya's boundaries.

It is situated in Kenya's breadbasket and is surrounded by fertile farmland. Maize, wheat, tea, and coffee are among the crops grown in the region. This opens up prospects for businesses in agricultural, food processing, and allied industries.

Eldoret also boasts a vast pool of competent and educated individuals, making it simple to source talent for your company. The town has various universities and technical colleges, which provide skilled workforce.

Machakos

Machakos is a town located in Kenya's eastern region.

It is well-known for its agricultural products, making it a great location to launch an agribusiness.

Machakos is also home to a number of manufacturing companies, making it an excellent location for starting a manufacturing firm or other reputable, low-cost but successful businesses.

Thika

Thika is a town located in Kenya's central region. The town is known for its agricultural industry, with pineapples being the primary crop grown in the area, making it a great location to launch an agribusiness.

Thika also has a growing manufacturing sector, making it an excellent place to start a business.

Kitale

Kitale is a town in Kenya's western region, roughly 385 kilometers from Nairobi. It is a rapidly rising town with a lot of business possibilities.  Kitale is situated in the Rift Valley, one of Kenya's most productive regions. The area is well-known for its agricultural output, which includes maize, wheat, sugarcane, and horticulture. This opens up prospects for enterprises in agricultural, food processing, and allied industries.

Kitale has excellent transportation links to the rest of Kenya and East Africa. The town is on the main route that connects Nairobi to Kampala, Uganda, and it also has a railway line. This facilitates the transportation of commodities to and from other regions of the country and region.

Malindi

Malindi is a town located on the coast of Kenya. The town is known for its tourism industry, with a large number of visitors coming to the area each year. Malindi also has a growing fishing industry, making it an excellent place to start a business.

Top 20 best businesses in Kenya Cities and States to start with little capital and earn huge Profits

●        Online business

●        Freelance writing

●        Cleaning services

●        Photography

●        Event planning

●        Social media management

●        Food delivery service

●        Car wash and detailing

●        Beauty salon

●        Poultry farming

●        Graphic design

●        Tutoring and coaching services

●        Farming and agriculture

●        Mobile repair services

●        Bakery and confectionery

●        Hair salon and barbershop services

●        Shoe and leather goods repair services

●        Second-hand clothing sales

●        Real estate agency

●        Laundry and dry cleaning services

FAQS

How much capital do I need to start a business in Kenya?

The amount of capital needed depends on the type of business you want to start. However, with as little as KES 10,000, you can start a small business in Kenya. 

Do I need to register my business with the government?

Yes, you need to register your business with the government to comply with the laws and regulations in Kenya.

Can foreigners start a business in Kenya?

Yes, foreigners can start a business in Kenya, but they need to comply with the laws and regulations. 

Which city or town has the lowest cost of living in Kenya?

Generally, smaller towns have a lower cost of living compared to bigger cities. However, the cost of living also depends on the lifestyle you choose.

What is the fastest growing business in Kenya?

The fastest growing business in Kenya is the technology sector, particularly mobile technology and software development. Other fast-growing sectors include renewable energy, e-commerce, and agribusiness.

Where is the best place to start a business in Kenya?

The best place to start a business in Kenya depends on the nature of the business. Nairobi is generally considered the hub of business in Kenya and offers numerous opportunities for different industries. Other cities such as Mombasa, Kisumu, also have a favorable business environment.

Where can I get capital to start a business in Kenya?

Capital for starting a business in Kenya can be obtained from various sources, including banks, microfinance institutions, angel investors, venture capitalists, and government funding programs. 

How much capital is required to start a bank in Kenya?

The minimum capital required to start a bank in Kenya is Ksh.1 billion, as per the regulations by the Central Bank of Kenya. However, the actual capital required can be higher depending on the scope and scale of the bank's operations.

Conclusion

In Kenya, starting a business with little cash is possible, and there are numerous cities and towns to select from. The trick is to do your homework and choose the best location for your company's needs. Before deciding on a location, consider the cost of living, the availability of resources, and the local market demand.

Remember that beginning a business is not easy, but it is possible to succeed with hard work, determination, and the correct location. If you're ready to put in the time and effort, any of the cities or towns on this list could be a great spot to start your business.