List Of Profitable Businesses To Start In Kenya With KSh 20k

• With the high unemployment rate, some Kenyans are establishing businesses to make ends meet
• The mitumba business is a lucrative venture in Kenya as the demand for second-hand clothes is high among the population
• Farming is another profitable business that can be started with KSh 20,000 if one does not have to lease land

The Kenya National Bureau of Statistics (KNBS) data showed that jobless Kenyans grew to 2.97 million in quarter four of 2022.

The number of unemployed Kenyans increased by 2.94%, up from 2.89 million reported in the third quarter of 2022.

With the high unemployment rate, some Kenyans are establishing businesses to make ends meet.

Starting a business is capital intensive, but with KSh 20,000, one can start a profitable one.

Which businesses can one start with KSh 20k?

1. Selling mitumba in Kenya

The mitumba business is a lucrative venture in Kenya as the demand for second-hand clothes is high.

Jane Korir, who operates a mitumba shop in Kapsabet town, told TUKO.co.ke she started her mitumba business with KSh 17,000 borrowed from her father.

She bought second-hand clothes from Eastleigh in Nairobi and started selling them by the roadside.

Korir has since opened her shop with the profit made from mitumba.

"I make close to KSh 100,000 in a good month. The business enabled me to open a salon which employed four people," she said.

2. Cleaning business

With some companies outsourcing cleaning services, one is established by registering a business name.

The registration fee for companies is KSh 10,000 for application and reservation of name.

"The name search and reservation process can be done at any Huduma Centres countrywide, online using the e-Citizen platform and on a Safaricom mobile phone by dialling *271#," the company registration form states.

3. Selling cereals

Maize and other cereals, such as rice, are in high demand in Kenya as they are staple food.

According to Selina Wamucii, an online marketplace for farmers, maize retails at between KSh 43.06 and KSh 58.33 per kilogram. This translates to between KSh 3,870 and KSh 5,250 for a 90kg bag.

With KSh 20,000, one can buy four to five bags and resell the grains at a profit.

Mary Makena, who sells pishori rice, said one can start small before expanding the business.

"You start with small quantities, then as time goes by, you keep adding. This also depends on the amount of rent you pay," she told TUKO.co.ke.

4. Farming

Farming is another business that can be started with KSh 20,000 if one does not have to lease land.

According to Kenya Invest, the amount will be enough to buy seeds and fertilisers.

One can either plant vegetables or buy chicken to keep for sale.

5. Phone repair shop

Kenya has 65.4 million SIM subscriptions, according to the Communications Authority of Kenya quarter one 2022-2023 sector statistics report.

The increased mobile phone usage means a repair shop is one of the most profitable businesses.

One can either learn the skills of repairing phones or employ a technician. The shop has to be set up in a strategic location where one can find as many customers as possible.

5. Grocery store

A grocery shop is a business you can easily start, especially in urban centres if you have the capital.

Groceries are among the fastest-moving products in the market. Few people in urban areas have small kitchen gardens, meaning groceries are a basic need.

To succeed, sell fresh produce and offer quality customer service. Setting up a grocery store in a residential area with enough traffic will yield more profits.

Nairobi businesswoman thrives in dairy

In other news, Njoki Ngugi lost her job after a foreign company she worked for shut down its operations in Kenya but did not lose hope.

Njoki Ngugi (Mama Milky) is the director and chief executive officer (CEO) of Crystal Creameries Company.

The businesswoman started the milk value addition business in 2015 at a milk bar she owned in Naivasha, Nakuru county.

She shifted to Kabati, Murang’a county and has since opened a shop at Ngara, Parklands, near Chandarana Supermarket.