Top 20 Best New Business Ideas in Kenya 2023

Business ideas cuts across all industries and segments of our lives. As long as you can identify a need, you can turn it into a successful business. Kenya is full of opportunities that you can tap to start a great business. To identify some of these, let’s look at the top 20 best new business ideas in Kenya 2022.

New business ideas arise all the time as human needs and wants change. This is driven by factors such as government regulations, changes in technology, and finally changes in disposable income.

Regulations function to support or limit some businesses depending on the leadership. As an example, during the Covid 19 outbreak, the government made it mandatory for everyone to wear masks. This policy was a plus in boosting the mask business both from the manufacturers to the retailer levels.

On the contrary, there have been policies meant to derail some businesses such as betting through the introduction of taxes and fees.

Technology has also brought in new business ventures that were absent in the near past. Some of these include growth in the internet, computer, and mobile phones industries that currently employ thousands of Kenyans.

As the economy grows, so is the disposable income resulting in to shift in needs and preferences. This creates the demand for new goods such as in the beauty and luxury clothing industry.

Hence all these factors are the basis that these top 20 best new business ideas in Kenya come from.

1.   Beauty business

The demand for beauty products and services has been experiencing rampant growth in the last few years. This is due to the growth in the number of people seeking these services. Growth in this industry is expected to continue as the disposable income of Kenyans continues to expand.

Some of the businesses that fit in this category include Barber shops, Nail parlors, salons, and massage services. You can seek to join this business on various levels based on your skills and capital levels. Some of these include producing the products or as a retailer.

2.   Forex trading

The market for currencies continues to attract thousands of Kenyan traders in the race to make some profits. As the largest market in the world accounting for over 600 trillion shillings daily, the forex market can only get bigger. Learn more on How to Start Forex Trading in Kenya.

As a financial market, forex trading requires trading knowledge and experience to become profitable. you can get these skills through learning and experience. You also need starting capital and a trading account with a broker. Currently, there are 6 brokers authorized by the Capital Market Authority(CMA) to offer forex trading services in the country.

3.   Investing in shares

Also known as stock investment, buying and selling of shares in Kenya have become a money maker for thousands of investors. The Nairobi Securities Exchange is the platform in charge of listing publicly traded companies in Kenya.

Buying shares is not a complicated process. You only need toopen a CDS account with a broker. You also need the have the market knowledge and startup capital.

Depending on the shares you are buying, you can start investing in shares today with less than 5,000 shillings. To start, let me tip you some of the Top 5 Best shares to Buy in Kenya.

As a beginner, you should focus on buying shares for the long term as companies tend to grow over time. Some of the benefits you get from investing in shares include dividend payments and share price gain. Below is a breakdown of all companies listed on the NSE. From this list, you can choose one that fits your needs.

4.   E-commerce

This is a business driven by access to the internet and physical gadgets such as mobile phones and computers. As more activities get online, so is the business. E-commerce allows you to sell your products and services through various online platforms such as social media sites and websites.

As an example, you can become a seller on Jumia enabling you access to the millions of Jumia customers online.

Alternatively, if you don’t want to plug in the existing platforms, you can create your E-commerce platform where customers can buy your goods and services.

There is also an option of using e-commerce pages on social media platforms such as Facebook Marketplace and Instagram.

5.  Customized clothing business

The customized clothing business is among the top 20 best new business ideas in Kenya 2022. Although the clothing business is not new, the way it’s done is changing due to a shift in customer needs. This has made sellers more advanced in trying to offer goods as per the customer preferences

This happens through customization. Customizations require you to have some sense in designing as each customer will have a different set of requirements.

On the positive, it allows you to charge a higher markup ensuring you are having above-average returns. Some of the clothes that require customization include suits and clothing meant for special occasions such as weddings.

As long as you offer customers what they need, you are likely to get a market that will last into the future.

6.  Online restaurant

The habit of ordering food online in homes and offices is starting to dominate the food industry across the country. This has made it easier to establish a restaurant as you are no longer required to get expensive space in the middle of town centers.

As long as your customers are online, you only need a working kitchen that you can use to prepare the food, register with a food delivery company and finally start delivering food. Some of the top food delivery companies in the country include Glovo, Uber eats, and bolt food.

This business concept is easy and affordable to start as you don’t need a big physical space whose rent is high.

As long as your food is competitive both in price and quality, have enough choice for the customers and you can manage the operating costs, this business suits you.

However, as a food business operator, you should ensure to have all the required food handling permits from the relevant government authority.

7.  Cleaning services

Growth in the number of both commercial and residential places has increased the demand for cleaning services. In return, this is creating a niche that you can take advantage of to offer these services.

The starting point of this business Is registering a cleaning business with the government. With the registration complete, you should now use the documents to seek cleaning jobs or contracts.

To get the jobs, you need to spend time marketing your services by making physical visits and using your networks.

However, due to the nature of these services, you have to invest in cleaning tools and detergents and staff to get the job done. You should also consider training your staff to ensure they have the right skills.

This is the only way to achieve customer satisfaction by offering high-standard cleaning services. A factor that is key if you intend to maintain them.

Alternatively, you can also set up a physical location where customer can bring their items for cleaning. some of the main cleaning services offered in such a setup include clothing and carpets.

8.  Freelancing

Freelancing is a major business in the top 20 best new business ideas in Kenya 2022. It involves offering your services and skills to different clients across the world through the use of various platforms that connect buyers and sellers. To make it easier for you, I have explained more about the  Top 5 Best freelancing websites in Kenya.

Freelancing has made it possible for almost everyone to sell their skills as long as they are good at them. It also helps to eliminate the geographical barriers allowing free flow of labor through various online platforms.

Freelancing jobs are normally on a short-term basis and payments are done per the number of hours or tasks completed.

However, you have to prove you understand the task before you can get it. This means that it is tough in the early days of freelancing. The more successful tasks you undertake, the easier it becomes to get a job.

Currently, thousands of Kenyans are working in this industry and making a living out of it. As the access to computers and the internet grows, freelance jobs can only increase creating more opportunities in the future.

Some of the most common freelancing websites in the country include both Upwork and Fiverr.

9.  Software development

Software development sits at the core of growth in computing services. Currently, almost every industry and business have the software needed to make them competitive.

Hence, as we move into a future full of technology, the need for software programs will continue to grow. It is an open fact that the Kenyan software market is currently underserved due to limitations in available skills.

This makes this a key market to get in if you have the right skills. The best approach is to establish a software development company that you can use to develop and seek jobs. Learn more on How to register a company in Kenya.

To achieve this, you should seek to get staff both with software development and marketing skills. Alternatively, you should focus on training your staff to achieve the right skill level.

Software development is a time-consuming job that could take years to get the job done. Hence, you should have sufficient capital to can sustain the business during this process. Alternatively, you can negotiate with the client to pay in stages for the work done.

As a developer, you can also create your software and put them in places such as play stores where customers can download and use it. To make money from them, you can opt to charge membership fees or use advertisements on the platforms.

10.  Security services business

Demand for private security services continues to grow in the country by private individuals and businesses. Private security services complement the efforts by the government as the legally mandated body to offer security to Kenyans.

As such, this is a business that will continue thriving as more businesses come online. There is also a rising need for security services in private homes and estates.

Some of the additional services that come with this business include custodial services, transport services, and personal security services.

However, you need to have a substantial amount of capital to start. This is because you will need to hire staff, establish an office and purchase the basic equipment such as cars and clothing. You should focus on marketing especially when the business is new.

One of the key requirements to have is a private guard security license offered by the Private security regulatory authority (PSRA) established under the private security regulation act of 2016.

11.  Affiliate marketing

Affiliate marketing is a new concept of sales using online platforms such as social media and websites to push products and services. In return, you get a commission for every sale done. The amount of commission depends on the affiliate. This could be in form of a percentage of the selling price or a standard rate.

This business is starting to get big in the country as more people utilize these media sites. Businesses are also increasing their products and services push through this channel to grow their sales numbers. Below is a starting breakdown of the Top 10 Affiliate Marketing Programs in Kenya.

Success in affiliate marketing is based on how well you can utilize your media platform to do sales. The more followers you have, the easier it is to make more money in affiliate marketing.

Some of the tips to succeed in this business include choosing the programs with the most common sought-after products. You should also take programs that pay higher commissions especially if your conversion rate is low.

12.  Blogging

Blogging is another internet-driven business. Success in blogging requires you to have an interest in writing and creating content as this is what it is all about.

Kenya currently has over 3000 active blogs with the owners targeting to use them as business ventures. Learn more on How to Start and Run a Blog in Kenya.

For a beginner, starting a blog requires you to get a domain name and a Webhosting service provider. These services come at costs but they are affordable. In most cases, getting this done could cost you not more than 5,000 shillings.

As a blogger, you need to identify your target niche to create content that aligns with your interests and passion. Successful bloggers create content that is relevant and of great quality. Only through this that you can attract more readers to your site.

Income from blogging comes from various sources such as ads placements through various sites such as google AdSense. You can also do direct marketing or use other income-generating approaches such as affiliate marketing.

The more blog visitors you get, the higher the chances of making money from the platform. On average, bloggers in Kenya make at least 50,000 shillings monthly. However, this could go up with the bigger blogs making millions monthly.

With billions of people looking for content online regularly, you only need to get a niche that suits your interest and knowledge.

The only downside with blogging is that it takes many months or years before you can start making any tangible income. Hence, you need to be patient for it to grow.

13.  Fitness business

Here comes another business that cannot miss in the top 20 best new business ideas in Kenya 2022. The fitness industry is growing rapidly in Kenya driven mostly by health and physical reasons.

In this business, various ideas can work such as starting a gym or personal training. The choice of business will depend on your skills and amount of capital.

As more people become aware of the need to stay fit, this business will keep on expanding. If you are targeting to set up a gym, focus to put it in an area that is easily accessible and near offices or residential areas.

You should also seek to have most of the equipment necessary to offer your customers choice. The personal fitness training business is different as it could involve visiting clients at their homes or offices for training.

The more clients you have the more money you make. Some of the skills you need to have to succeed in this business include equipment handling and food nutrition.

14.  Online teaching

The need for knowledge is driving the demand for online teaching services. This happens through various online platforms such as learning sites and YouTube. One of the largest online teaching platforms is Udemy.

Online teaching requires you to come up with the content of the topic you intend to teach based on your knowledge and skill level.  You should then focus to get students that can learn from you.

Some of the income channels from this business include charging a training fee or subscription and selling the learning materials.

To get and retain more customers, focus to use various teaching methods such as engaging your students and using visual tools.

The better you are at training, the more students you attract and hence the more money you make.

15.  Wines and Spirits Business

This is one of the businesses that has stood the test of time. Consumption of alcoholic drinks in the country is expanding and will likely keep growing as the population grows. As such, this is a business idea that you can start across any region in the country.

As long as you have what the customers need and can afford, this business will be successful and profitable. On the start-up details, learn more about How to Start and Run a Wine and Spirits Business in Kenya.

Some of the major success factors you need to succeed include getting a good business location and complying with all the government regulations such as getting a liquor license.

16.  Financial services agency

You are most likely to be familiar with financial agencies that offer services such as M-Pesa and bank deposits and withdrawals. As a market leader in this agency business, Kenya continues to create thousands of opportunities for investors.

These agencies make it easier for Kenyans to access financial services conveniently and affordably. In the process, the agent makes a commission by facilitating these transactions.

This is a business that will continue to dominate the financial sector as long as the need to deposit and withdraw funds exists.

Starting this business is not complicated. You only need to make an application with the financial institutions, get an operating space and have the startup capital to get going.

Upon approval, you will get some operating tools such as a POS machine in the case of banks and an agent line for M-Pesa services. The most common agency business is becoming an M-Pesa agent. This is because it is the most used financial service in the country with over 30 million using it regularly.

17.  Internet provision business

As the demand for internet services keeps rising, the opportunities for business in this industry are also growing. The current trend involves offering Kenyans internet connection at their homes and businesses.

In the near past, most of the connectivity has been happening in major cities such as Nairobi. However, the smaller towns remain underserved. As more services go online, so will the demand for fast and affordable internet connections.

Currently, most of our day-to-day activities require an internet connection. Hence, you can use this need to offer internet connection services.

This business requires a huge startup capital to facilitate the deployment of the necessary infrastructure. You also need to have the technical skills to manage the connections. Finally, you need to have a good marketing approach to get as many customers as possible.

18.  Financial consultancy

This is among the top 20 best new business ideas in Kenya 2022. It entails offering financial consultation services in areas such as budgeting, planning, and investment.

The ideal target market is businesses and individuals with a financial gap that needs help. Many Kenyans don’t have the right knowledge on investment matters. Hence, this is the gap you target to fill through assisting them at a commission.

Due to the technical nature of this job, you need to have the right skills in financial matters. You can get this through learning and experience. Some of the major investment areas customers need help with include real estate, the stock market, and government bonds.

19.  Daycare business

This is an ideal business that targets taking care of babies when the parents are engaged. As more people join the working environment, there is a growing need for daycares services.

You have to get interested in dealing with small children to succeed in this business. The ideal target location is residential areas where your customers stay. Due to the delicate nature of this business, you should ensure to have a safe and clean environment for the business.

20.  Phone repair business

The phone repair business is thriving due to the growth in the uptake of mobile phones. The trend is likely to continue as more Kenyans acquire these devices. The importance of mobile phones has made it almost a necessity to have one.

As a business person, you should target to locate it in an area that customers can easily access. You also need to have the right skills as this is a technical job.

Although the startup capital is not very high, you require to have the basic tools to start the job. One advantage of this business is t you can locate it everywhere across the country as the access to mobile phones is inclusive.

Initially, the business will be slow but as customers get to know about your services, you will experience growth in the long term.