You don’t need a lot of money to start a business. This is because there are business options to start with almost any amount of capital. Today, let’s look at the top 15 businesses you can start with 20K in Kenya.
How To Start A Business With 20k In Kenya
There are various businesses you can do in the country with 20,000 shillings. It all depends on your interest and skills.
1. Mitumba/Second-Hand Items Business
20,000 is a lot if you want to begin a mitumba business. This is because the cost of these items is affordable to the majority of Kenyans.
You can get an item for as little as 50 shillings or even lower and then sell at a markup. Some of the most sought-after mitumba items include clothes and shoes. You should specialize in one item to grow your customers on this line.
Most mitumba business people get their stock from the Gikomba market as it is the main distribution point after their importation. On the capital, you can use half of it to buy stock and the rest to rent a small place for selling. Alternatively, you can do hawking, especially during the evening hours.
3. Starting a blog
Blogging is a rising top passive income earner in the country making it among the top 15 businesses you can start with 20K in Kenya. You only need to get a domain name and a hoster to start this business.
Starting a basic blog requires less than 10,000 shillings which fits right within this budget. The rest of the capital can be spent to market the blog. Learn more on how to start a blog in Kenya. The only secret in this business is that it takes time to start making money from a blog. If you do it well, it could take at least 1 year to become profitable.
4. Cereal shop
This amount of money allows you to start a small cereal shop. You only need to get a store and start-up stock to get going. However, don’t forget a business permit as well.
Kenyans are big consumers of cereal and hence the market is readily available. Some of the most common cereals include maize, beans, and rice. To succeed in this business, you need to buy in bulk so that you can enjoy the discounts.
This will enable you to make more profits as the buying price is low. A cereal shop business does well in residential areas and business streets.
5. Fruit Juice and salad business
Kenya is a big producer and consumer of fruits. This creates an opportunity to start a fruit salad and juice business. Due to the demand for fruits, this business can do well in almost every part of the country.
However, it is best if you target areas with high traffic to get more customers. The business also does well during the hot season as the demand for drinks is high.
Success in this business requires you to sell good fruits and maintain hygiene.
6. Kinyozi
You are within this budget to start a Kinyozi/barbershop business with 20,000 shillings in Kenya. The only strategy to do this is getting the basic tools and permits to get going. You can get a shaving machine and the rest of the tools for 10,000 shillings. Use the rest to get the permit and shop.
With this amount of capital, you should target to start this business in a cheaper area to afford some costs such as rent. The business should also be located in areas with high traffic and residential estates.
On average, a barber charges at least 50 shillings to 100 shillings for basic shaving. Hence, your income will be dependent on the number of people you serve. Focus to grow your customer base in the long term by offering good service.
7. Forex trading
This is a business that deals with the trading of currencies. The forex trading market is the largest in the world followed by the stock market.
To start forex trading in Kenya, you need to open a trading account with a forex broker. Some of the leading licensed forex brokers in the country include EGM Securities and Scope Markets Kenya.
Once you have a trading account, you are ready to fund it and start trading. To succeed in this business, you need to do a lot of learning and have patience. On average, it takes a year to become a profitable forex trader.
You can start trading with as little as 5,000 shillings. However, the capital determines your income. So, the more you put in the higher you make.
The only challenge with this business is the risk of losing your investment if the market goes against you. Hence, only put in what you are willing to lose to avoid disappointment. Other traits that are necessary to succeed in forex trading include having emotional control and risk management skills.