Best Online Businesses to Start in Kenya: How to Start One

Starting an online business in Kenya comes with a lot of benefits owing to the rapid growth of the digital space in the country.

Online businesses in Kenya appeal to many entrepreneurs because of their effectiveness, utility and practicality since large portions of the market can be accessed without setting up a shop in any part of the country thereby cutting down extra expenses like rents.

The use of e-commerce sites such as Jumia and electronic payment systems such as M-Pesa ensures online business people facilitate a smooth online market.

The vast youth demographic in Kenya, the majority of whom are digital natives, makes them the perfect target for most Online Businesses to Start in Kenya.

Besides the low capital businesses to start in Kenya, online businesses ensure that investors have the potential for a larger audience implying higher profitability.

Most people sell specific commodities online like beauty products, exercise gear, and lessons on the web among others.

List of Top Online Businesses to Start in Kenya

Online foot wear store

Urban Treks is an example of an online footwear store dedicated to the sales of all types of shoes within a pocket-friendly price range.

Among the Online Businesses to Start in Kenya, an online footwear store in Kenya is promising as investors will likely meet several potential clients online.

You can stock all types of footwear; babies, kids, men’s, and women’s footwear. In addition, you can stock casual, official, and sports shoes and therefore, you can market to a wider audience.

Once you open the shop online, you can attract all trendy people looking for fashion footwear.

Salespeople can attract a larger audience through the use of influencers and ads to increase their reach implying a larger audience.

Online Beauty Store

Beauty Hub is an example of an online beauty shop dedicated to the sales of a wide range of beauty products.

Having an online beauty shop in Kenya enables you to meet the rising consumer market for beauty and skincare products.

You can reach females, beauty fans, and young occupational professionals who are always seeking the freshest and newest beauty products in the market.

Even so, consumers need to be re-assured and come back; to that effect, stocking a plethora of sundries such as makeup, skincare, haircare, etc., will keep them returning.

Getting an attractive online store and marketing your products on such platforms as Instagram can help you get the audience you need.

Selling Online Courses

Udemy is an example of a website where learners can access a wide range of courses remotely.

Accessing educational programs in Kenya is on the rise thus rendering it one of the most profitable Online Businesses to Start in Kenya.

Students, professionals and those who want to improve their knowledge can be served with courses in various subjects such as digital marketing, IT, business etc.

Advertising the courses through social networks, targeted advertising, and collaborations with educational establishments helps to sell the courses.

Liquor Online Store

Liquor Shack is an example of an online liquor store delivering wines, spirits and other drinks to its digital customers.

Searching for liquor is time-consuming, thus making Online Liquor stores ideal for those seeking to purchase drinks in the comfort of their homes.

Several liquor options should be made available to customers, including a selection of wines, spirits, and beer.

Salespeople should streamline the ordering process and provide delivery services to enhance the ease of shopping with you.

eBooks Business

eBooks market is an online shop dedicated to the sales of eBooks in different niches.

Sales of eBooks is on the rise in the Kenyan market from different people seeking to gain some know-how on ideas such as starting a profitable online business, making eBooks profitable.

Venturing into eBook genres such as self-help, education, fiction, and business guides may lead to lucrative incomes thus one of the most profitable Online Businesses to Start in Kenya.

Your business may sell the books by using online shops such as Amazon Kindle or own site which allow customers to purchase and download books easily.

Promotional strategies may include promoting eBooks through affiliate marketing, online book clubs and email newsletters to ensure high visibility.

Online Electronics Shop

Digital Store is an online electronics shop dedicated to sales of different electronic brands among them mobile phones, computers, and entertainment gadgets among others.

An online electronic shop is strategic since many people tend to widow shop electronics price range and features before making a purchase which is easy with an online shop.

You can start by stocking phones, laptops, and accessories to target businesses and technology-loving people.

Focusing on distance learners, professionals, and technology oriented customers will give you a portion of the lucrative electronics market.

You should build useful tools like fast delivery options and simple website usability to cater for customer expectations leading to more sales.

Selling such products on websites like Jumia, and reviewing and advertising them on tech blogs can help establish your electronics business in a very competitive market.

Online Bakery Business

Cake City is an excellent online bakery shop with a variety of bakery products.

Setting up a delivery bakery in Kenya is even more fun as you satisfy clients with the most delicious products such as cakes and other baked products.

Where you provide baked goods of various types such as bread, cakes, pastries, and other dry or scone types, you can market them

Bakery products are marketable to families, individuals, and event managers looking for easily accessible products of their taste and price range.

The key to a successful bakery business is to have a good website which allows clients to make their orders easily and within a short period, and offer a quick delivery service there-after.

You can sell your bakery through the use of social networks by displaying your works, local shows, or making special cakes for selected events.

Over time your online bakery will become a boom due to the stellar consistency in the quality of services and products offered thus one of the best Online Businesses to Start in Kenya.

Body Improvement Products Store

Health Cart is an example of an online bodybuilding store majoring in selling bodybuilding products.

The urge for improving ones body has now been made easier by the sale of body improvement products online, a trend on the rise in Kenya.

In setting up such an online business, a person may stock supplements, fitness gadgets, and body care products for people pursuing fitness and wellness.

A strategic and well-structured web shop, accompanied by captivating text on fitness advice, may enhance the level of customers’ interest and loyalty.

Your business can grow faster if you take advantage of the increasing trend of healthy lifestyle and body enhancement needs.

Kitchen Accessories Store

Vitu Zote is a website that is dedicated to the sale of kitchenware both for families, restaurants, and institutions among others.

Starting an online sale of Kitchen accessories can be a very profitable venture in Kenya since most people are now into cooking.

You can target families more so young ones, professionals like chefs and eateries as the major target customers.

Optimizing the online store and providing logistics will help extend the outreach of the store placing the venture as one of the favorable Online Businesses to Start in Kenya.

Marketing your items using social media as well as offering cooking classes or demonstrations on usage will help engage your potential clients.

Your online kitchen accessories store can prosper by following the recent patterns of kitchenware and replenishing the stock with high-quality products’.

Online Pharmacy Store

MyDawa is an example of an online pharmacy shop

Selling drugs online satisfies the majority of Kenyans who require health products and may be far from the medical centres.

You can market prescription drugs, nutritional supplements and healing items to individuals, their families and medical practitioners.

Following the necessary guidelines for Licensing and offering an encrypted site will win the confidence of your clients.

Providing delivery and giving adequate details about your products will also improve the business.

You can expand your clientele base by marketing your online pharmacy using social media, carrying out community and healthcare events and collaborations.

Online Gifts Shop

Taz Gift Shop is an example of an online gift shop specializing with the sales of multiple gifts.

There is a remarkable and unquenchable need for an online gift shop in Kenya for Kenyans to be able to buy gifts for various occasions with ease.

By selling gifts and gift baskets, getting appropriate clients will be very easy as you will meet the needs of event organizers, young couples, and anyone who wants to buy nice presents.

To enhance customer satisfaction, it is important to design a site that is easy to personalize and quick to deliver their orders.

Instagram can be used to promote your shop, host influencers or run holiday sales specials that may also improve your shop’s reach.

Online Grocery Store

Keekapu is an online grocery store offering a wide range of products from veg to dairy products.

Establishing an e-commerce website for grocery shopping, one of the best Online Businesses to Start in Kenya, will help meet the increasing market needs in Kenya.

Your grocery store will be targeting both households, individuals and even small local businesses through the sale of fresh food, grocery items and other core items.

There will be no hassle for the customers in shopping as they will have an easy-to-use site and reliable delivery channels.

There are such alternatives as promotions, customer loyalty programs, and provision of high-quality service to customers that will help establish a loyal customer base in the near future.

Marketing your grocery shop to more consumers using social media, local relationships, or verbal communication will improve the business.

Drop Shipping Business

Activewear is an active drop shipping website majoring in the sales of a variety of clothes.

Starting a drop shipping business enables a person to operate an online shop without keeping stock.

Drop shipping allows business people to market a wide range of products, among them clothes, electronics, and beauty products among others.

You can use Shopify and Jumia to set catalogs and have customers order online with the suppliers responsible for delivery.

You can improve sales in your shop by using Facebook Ads, Instagram marketing, and Google advertisement.

When properly managed, your drop shipping business can operate with minimal operating expenses leading to massive income.

Digital Marketing Agency

Kwetu Media is a major digital marketing agency in Kenya

Launching a personal online digital marketing agency creates opportunities for an investor to help Kenyan firms increase their market reach.

With digital marketing, one of the best Online Businesses to Start in Kenya, you can assist SEO, social media marketing, and content creation for small and medium-sized businesses.

Potential clients will seek you out after you build a professional website and display a portfolio.

You can further enhance your credibility by promoting your agency on LinkedIn, networking events, and collaborating with firms in the same industry.

With the increasing realization by many businesses of the necessity of having a strong online presence, opens further marketing channels for your digital marketing agency.

Offering Virtual Assistant Services

Prialto is an example of a website offering virtual assistance services.

Virtual assistant services allow you to help busy professionals and business owners with administrative support.

Tasks such as calendar scheduling, answering calls or emails, and data entry can be done in your home office with virtual assistance.

You can also create a personal website to share your skills and experiences which can build trust and credibility with prospective clients.

With many businesses going remote, there is every potential that virtual assistant services are going to be in demand as there are clients looking for such services.

Steps to Starting an Online Business in Kenya

Step 1: Choose a Niche

The first consideration when starting one of the best Online Businesses in Kenya it is good business opportunity or market to venture in.

In Kenya there are diverse opportunities in the online business sector including e commerce, digital marketing, online consultancy and content creation.

Understanding the market needs and identifying the competition will enable you select a suitable specialty that you can work on enthusiastically.

After getting a feasible idea, write a business proposal that should capture; the vision, the niche, the sources of income and financial organization. This will serve as your guide.

Step 2: Register Your Business

In Kenya, for a business to be legal it must be registered with the government.

The first step is to decide on the business structure: what form it will assume whether a sole trader, partnership, ‘limited company’ or a joint stock company.

Register your business name with the Business Registration Service using the eCitizen portal.

It remains important for a business person to conduct a search on the name in order to be assured of the uniqueness of the name in question.

Subsequent to approval, you will require a Certificate of Incorporation for LLCs or corporations or a registration certificate for sole proprietorships.

You should also make sure to have a Business Identification Number and register with the Kenya Revenue Authority (KRA) for a Personal Identification Number (PIN) for taxation.

Step 3: Acquire the license and permits needed

Some of the internet business may or may not be licensed depending on the type of business.

For example, if you are launching an e-commerce company you may require an online trading license from your local county.

In the case of carrying out digital marketing or any consultancy service, one may need to have a professional license.

You should also meet the laws of data protection, especially if you are dealing with customer’s data.

Kenya has its own Data Protection Act that spells out that online businesses must ensure that they protect their customer data as much as possible.

Step 4: Web hosting and web design

In establishing an online business, it is essential to have a website, thus consider one of the best web hosts in Kenya for hosting and designing of your website.

This is true because the strength of an online business depends on the strength of the online platform it creates for business.

The first recommendation is to create a good and professional website with regard to the brand.

To build an e-commerce/business website, you can go for WordPress, Shopify or Wix, even if you know little or no coding at all.

Ensure your website is responsive and you are constantly working towards SEO optimization in order to attract customers.

But also, use the web two-point social media sites and their profiles on Instagram, Facebook, twitter and linked in.

These are some of the most important platforms for marketing and relating with customers out there.

When selling products, ensure that options for payment included are M-Pesa, PayPal or Visa among others.

Step 5: Set Up Secure Payment Methods

Kenya is among the most advanced mobile payment systems, therefore adopting a sound and efficient way of performing the payments is very vital for your online business.

The favourite one is M-Pesa since it is well-known and members of the Kenyan market have confidence in it.

To add an M-Pesa payment button to your website, you must have an M-Pesa merchant account that you create through Safaricom’s site.

Other methods include mobile payments through PesaPal or FlutterWave or through one’s own or a regular bank via bank transfer.

To encourage your customers to use payment gateways they should be encrypted and should be very secure.

Step 6: Build a Marketing Strategy

Once you have set up your business, the next thing is to employ the right marketing strategy to tap the market. Emphasis on web and offline advertising.

Develop strategies such as social media marketing, content marketing, email marketing, and influencer marketing to enhance your online visibility.

This is very important for increasing the ranking of your website in search engine results

While paid advertising, that involves Google ads and Facebook ads, among others, is essential for an immediate boost in traffic.

Benchmark and modify your marketing communication activities for the target market.

Step 7: Meet All Tax and Legal Requirements

To own an online business in Kenya, one is supposed to pay taxes.

One should register with the KRA for VAT, employees’ tax for employees, and corporate income tax for income tax.

Like most sole proprietors or business persons, you are required to file your tax returns at least once a year.

Further, do not forget legal requirements such as the Consumer Protection Act and the Data Protection Act as well.

These laws will guarantee that customer relations are transparent and that personal data is protected.

Failure to abide by the law incurs penalties, and therefore, legal requirements should be met at all times.

Step 8: Scale Your Business

The beauty of the online business is that you have the opportunity to diversify and grow as your company progresses.

Spend on technology implementations, product or service diversification, and hiring more employees.

Check your company’s financial position with the help of accounting software and choose long-term objectives for growth.

One can also meet other online business people and join forums where other business people are found, thus creating more opportunities for partnership and gaining knowledge.