Now is the perfect time to start exploring the lucrative business ideas that Kisumu has in store for you. The lakeside city offers some of the friendliest investment conditions in Kenya and is a perfect town for small and medium sized enterprises (SMEs)…you and me included.
Some Profitable Business Ideas in Kisumu
Some business ideas that have the greatest potential of expanding in the city over the next few years include:
Long-term ideas:-Tourism (Hotels, curio shops and sports-tourism), Real estate (rental houses, student hostels, conference rooms) and Business Process Outsourcing (BPO).
Short-term ideas:-Hardware shops, food kiosks, printing/photocopy services, car-wash business, running errands, digital consultancy (e.g web designing, SEO consultancy, Social Media consultancy etc).
Of course, there are many other business ideas available in Kisumu and we would encourage you to keep researching on the ground.
Why Kisumu is Perfect for Small Businesses
Reasonable Rent Cost
Rental rates in Kisumu may not be as low as in other rural towns e.g. Nyeri, Naivasha etc., but they certainly are cheaper than what one would expect to pay up in larger cities like Nairobi.
An average office space that would be suitable for a small business set-up goes for Ksh10,000 to Ksh50,000 per month in Kisumu. Note that, some property owners charge goodwill which ranges from Ksh100,000 to Ksh500,000 depending on the location of the outlet.
Influx of Young Population
Many colleges and universities have set up shop in the city and this has led to a general increase in the number of young people in the region. It would therefore be a good idea to set up a business that focuses on offering services that are attractive to the young population.
Majority of Kisumu residents are known for their bizarre spending culture. One would be correct to term Kisumu as a spending economy rather than a saving one. IT services, motor vehicles and entertainment services are close to the hearts of the natives of this region.
Quite a lot still needs to be done to improve the global competitiveness of this city in terms of infrastructure. Overall, there are good roads and an international airport is located a stone’s throw away from the CBD.
Water and sanitation services seem to lag behind but the county government is working round the clock to improve on these areas. If you have the dream of starting a waste management company or consultancy firm, then Kisumu would be a perfect bet for you.
Import & Export Opportunities for SMEs
This market is largely untapped despite the presence of an international airport in this region. The watch and jewelry import business as discussed in this article would be a good venture for Kisumu-based entrepreneurs to explore.
Other brilliant ideas that can help you take advantage of the Kisumu international airport include:
- Drop Shipping (click on the link to learn more)
- Curio services
- Travel and Tours Blogging (With potential of setting up an online travel agency)
Kisumu’s social-life is unrivalled across East Africa. The residents seem to enjoy all forms of entertainments. You would therefore be at an advantage by starting an SME that borders on the field of entertainment.
For instance, you can start a small entertainment joint, running errands, video game outlets, gym, cab services etc.
Of course, there is a lot more research that you would need to do before rushing to explore any of the business ideas in Kisumu. As usual feel free to engage us via the comment box.