Category Archives: business

Are you tired of that 9-5 job you’ve had for the past few years? Or you probably have too much time in your hands that you feel it’s time to venture out and start your own business.

The truth is, 9 to 5 jobs can get monotonous and you are limited when it comes to how much money you make and the amount of control and flexibility you have.

For some reason though, most people shy away from entrepreneurship since It seems so complicated and too risky. When we think about where we’ll get capital, how we’ll find clients, it gets overwhelming so you are always procrastinating and using the excuse that you are not ready.

However, it doesn’t have to be that hard. Here are 10 businesses that don’t require too much capital and that you can actually start working on tomorrow;

 

1. Photography

Professional photography is one lucrative business that fortunately does not require too much capital. You only need to invest in a good quality camera. To start with you can get a good professional digital camera for anything between Ksh.15, 000 to Ksh.20, 000. With good contacts and top notch photography skills, you can get a lot business from weddings, birthdays, graduations, funerals and any events.

 

2. Boda Boda

The boda boda business is one of the most popular businesses in Kenya especially in the informal sector. In a day, most boda boda operators take home between Ksh. 2,000 – Ksh. 3,000 or more depending on their location of operation and how good business was that day. Boda Boda operators in urban areas tend to make more money due to the high cost of living and more demand. You can hire someone to operate the bike daily on an arranged agreement, as long as you get your cut at the end of the day.

 

3. Online Courses

Are you an expert on something? Do you have knowledge or a skill that is highly sought after? Do you have a great personality? Then you should consider starting an online platform where you offer courses on your area of expertise. The truth is that people will be willing to pay for something that will add value to their careers and lives. All you need is a website, great content packaged in a way that is easy to consume and a great digital marketing strategy.

 

4. Farming

Farming is one of the easiest, most popular ways to make extra money. With a small piece of land, you can invest in farm products that attract a lot of market and profit. Vegetables such as onions, tomatoes, cabbage, sukuma wiki and carrots have a ready market and they don’t need to be planted on large scale. Some of the areas with the best soils for farming are Kiambu, Kakamega, Rift Valley and Kisii.

 

5. Selling Breakfast and Lunch in offices

Who says you need a restaurant or stall to make it in the food industry? Most people who work in offices located in urban areas don’t like going too far to get food, so why not bring food to them? The good thing about this business is you can cook from home and deliver the food to various offices. All you need to do is foster great relationships with senior management of the offices near you so that they allow you to sell food to their staff. For this business, you need a capital of Ksh. 1000 to Ksh. 5000.

 

6. Web Designer

Online marketing is hotter than ever with every small business needing web presence. Creating websites is a skill that you can learn online and if you have an IT background, you are better placed. To start, you can start freelancing by offering to create a website for close friends and family as you grow your networks and establish yourself.

 

7. Wedding Planner

Are you a hopeless romantic? Do weddings excite you? Are you a regular on all your friend’s wedding committees? Then it might be time to take that to the next level and make money of it. Getting into wedding planning however requires a lot of networks from florists, photographers, caterers, fashion designers just to mention a few. Once you have your contacts, start off by planning a wedding for someone in your inner circle, get a mentor and grow from there.

 

8. Baking Cakes

Unlike the past when cakes were reserved for special occasions, cakes are the signature delicacy for all events today. From small office celebrations, launches, birthdays, graduations and weddings, the cake business is booming. This business does best in urban areas such as Nairobi, Mombasa, Eldoret and Kisumu where there is high demand.

 

9. Tailoring

If you have a passion for fashion, creating fashion designs and some basic tailoring skills, you could consider taking some tailoring lessons and making it a full time business. A basic sewing machine will set you back Ksh. 15, 000 – Ksh. 20, 000 and to start, you can work from home before getting your own shop/stall.

 

10. Selling Ice-cream

The hot season is back, guess what that means, there is more demand for ice cream. To start a simple ice cream business, you need a fridge and basic ingredients and you’re good to go. You could start a simple ice cream joint in your estate or target specific places such as outside supermarkets, offices and colleges. However, expect a lot of competition. Like many small businesses in Kenya, once you are all set up and have a steady stream of customers, expect three, four people to come set up right next to you.

 

Final Word: Starting a business is not easy but it doesn’t have to be so complicated either, If you’re willing to put in the work, learn new skills and focus on turning your passion into a profitable business. Think big but start small.

For the past few years, most Kenyans have been warming up to entrepreneurship with a huge number of startups being launched and a majority of employed Kenyans having their side hustles.

However you’ll agree with me that one of the greatest challenges facing entrepreneurs when starting out is access to capital. You also can’t rely on bank loans in Kenya due to high interest rates and having to provide collaterals.

An opportunity that most Kenyan entrepreneurs haven’t fully taken advantage of though is the public funds provided by the government for helping young entrepreneurs get their startups up and running. These funds also come with limitless benefits such as zero interest on loans and business training.

So far, the government has set aside more than Ksh. 25 billion for the sole purpose of creating a culture of entrepreneurship among youth and women in Kenya. Still, not too many Kenyans are taking up these funds and early this year, the government rolled out a sensitization campaign to encourage people to take advantage of the funds.

If you are looking out for capital for that business idea, here are the top 3 government funds you can tap into;

Uwezo Fund

Uwezo Fund

Are you a registered youth or women group keen on starting a business or expanding your existing business? Then the Uwezo fund is for you. This fund is administered at the constituency level through the Constituency Development Fund.

At the constituency the fund is run by the Constituency Uwezo Fund Management Committee which determines the amount of money to give to a group. Each qualified group is eligible to an interest free loan of between 50,000 – 500,000 Kenya shillings. However a 3% administration fee is charged.

To apply for the Uwezo fund here are the main requirements;

1. Be a registered youth or women group, preferably active for the past six months with evidence of minutes of your meetings.
2. Be organized in form of a table banking (chama) structure where members make regular contributions. Evidence of this contributions will also be required.
3. Have a bank account in the group name, with the bank statements to prove it.
4. The group must be based and handle their operations in the constituency they intend to borrow funds from.
5. You must also get a recommendation from your local chief.
6. Provide photocopies of ID’s and KRA pins of group members.

You can apply for Uwezo Fund by downloading the application form on their website or visiting the Uwezo Fund Management Committee offices in your constituency.

Women Enterprise Fund

For the longest time, Kenyan women have been marginalized when it comes to financial inclusion. Major challenges Kenyan women have faced include lack of capital, limited access to markets, fear of loans, financial illiteracy, religious and cultural factors and lack of collateral.

It is for this reason that the Ministry of Public Service, Youth and Gender Affairs initiated the Women Enterprise Fund to provide accessible and affordable credit to support women start and expand their businesses.

If you in a women’s group/chama, here are some benefits you are missing out on if you have not yet registered for the Women Enterprise Fund;

1. Interest free loans – Through the Constituency Women Enterprise Scheme (CWES), women groups can access the Tuinuke loan which is given to chamas at zero interest. A group could have 100% women or 70% women and 30% men. Even though the loan is interest free, the group is required to pay 5% administration fee.
2. No collateral required – Unlike bank loans, the Tuinuke loan does not require you to provide log books or title deeds. Instead, the women serve as a guarantee to each other.
3. Financial Training – The WEF fund places great emphasis on financial and business training for women. Actually, getting trained on business management skills by WEF officers is a prerequisite for loan application.
4. Easily Accessible – You don’t have to incur insane transport costs to access the WEF loan. The funds are decentralized and can be easily accessed through your local constituency offices.
5. Easy to pay back – The Tuinuke loan can be paid back through M-PESA.
6. WEF Soko – This is an online marketplace where products of WEF beneficiaries are showcased for purchase. Successful groups are also trained on product development, certification and are linked to local and international markets.

Youth Enterprise Development Fund

Established in 2006, the main purpose of the YEDF fund is to provide financial and business development services to youth between ages 18 – 35 who are keen on starting or expanding their business.

Even though the fund has been tainted with a number of scandals concerning mismanagement and corruption, slightly over 800,000 youth have benefited from it since its inception.

If you are a young entrepreneur, here are three YEDF loans you can benefit from;

i. Constituency Based Loans – This loan is available to individuals and registered youth groups at the constituency level looking for funds to start up a business. It is also interest free.

ii. Vuka Loan – This is a business expansion loan limited to youth who are looking to expand their existing businesses. It is the only YEDF loan where one is required to pay back with interest. The interest rate had been set at 8% until July this year where the interest rate was dropped to 6% which is still way cheaper than the current bank rates. The Vuka loan is open to individuals, partnerships and youth owned limited companies.

iii. Bid Bond/LPO/LSO Financing – This fund is eligible to youth participating in government tenders. It’s open to individuals, registered youth groups, partnerships and youth owned companies. The maximum amount available for a bid bond is 2 million while for an LPO/LSO loan the maximum amount is 20 million.

 

Final Word – Our government may have its weaknesses but we can’t fault them for not looking out for small businesses and upcoming entrepreneurs.

Have you tried out any of these funds? How was your experience?