If you’ve ever thought about starting an online business in Kenya, you may be unsure about where to begin or assume it will be too challenging. However, it is not as hard as you might think.
An online business is a type of business where you sell your goods or services through the internet. Unlike opening a physical store, starting an online business in Kenya has fewer barriers and is more budget-friendly.
The most essential things you would need include a stable internet connection, a laptop or smartphone, a website or social media account, and the products or services you want to offer. Once you have all these requirements and a few others, you are ready to go.
Why You Should Start an Online Business in Kenya
Starting an online business in Kenya will give you several advantages over competitors who rely on brick-and-mortar businesses. Here are three key reasons why this could be the right choice for you:
1. Lower Startup and Running Costs
Compared to traditional businesses, it’s much more affordable to start and operate an online business in Kenya. With an online setup, you can avoid major expenses like rent, water, and electricity bills. This means your operating expenses are low, allowing you to retain more of your earnings as profit.
In contrast, physical businesses require a dedicated space, often in a prime location, which comes with considerable costs. On top of rent, there are ongoing utility bills and labour expenses that can reduce profits.
2. Wider Market Reach
Many people in Kenya have internet access and prefer to shop online. With an online business, you’re not limited to customers in your immediate area. You can reach a much larger audience—potentially customers from all over the world. Therefore, you will have more opportunities to increase sales than someone operating a physical store.
3. Greater Flexibility
Running an online business offers much more flexibility than traditional brick-and-mortar stores. Unlike physical shops that have opening and closing hours, an online business is accessible around the clock. This means customers can browse and make purchases at any time of the day or night.
Sometimes you don’t even have to be online when a customer makes a purchase—the entire process is automated. Additionally, you can manage your business from anywhere in the world; you don’t need to be at a specific location.
How to Start an Online Business in Kenya
Step 1: Choose Your Online Business Idea
Before starting your online business, it’s important to know exactly what you’ll be offering to your customers. Some people prefer to sell physical and digital products, while others lean toward providing services like online tutoring, software development, virtual assistance, content writing, or web development.
No matter the product or service you choose to sell, focus on options that offer a good profit margin. Identify items or skills that people are actively searching for. This high demand can give your business the boost it needs to start on solid ground.
Step 2: Conduct a Market Research
When it comes to starting an online business in Kenya, conducting market research is a big step you will never want to miss. Never assume that you have a ready market for your product—you might be surprised that the market does not exist.
Market research is a crucial step for you to determine if the goods or services you intend to sell online have a chance of giving you back your return on investment. This involves understanding your customer needs, identifying gaps in the market, assessing the competition, and validating your business idea.
Step 3: Choose Your Business Name and Register Your Online Business
The next step is to choose a business name for your online business. A business name is the first thing people will recognize and remember, so it’s worth investing time and thought into getting it right. Your customers will also be able to easily differentiate your business from your competitors.
Choose a name that’s unique, yet easy to remember. Think of something catchy, that reflects your brand’s personality and relates directly to the products or services you offer. It should also be simple to pronounce and remember. For instance, if your name is Ben and you’re selling electronics, a name like “Ben’s Electronics” would make sense.
Once you’ve settled on a name, you’ll need to register your online business officially as required in the constitution on the e-Citizen portal. Once you register your business with your chosen business name, the name is exclusively yours to use in the business world—no one else can use it.
Step 4: Set Up an Online Payment Processor
Now that you have registered your online business, it’s time to consider how you will receive your payments. Since everything you’re selling is online, you’ll need a reliable way for customers to make their payments digitally.
There are various online payment processors in Kenya. Prioritize simplicity—choose a processor that’s straightforward and user-friendly. A complicated payment system can frustrate customers and even lead to lost sales.
For convenience, consider setting up more than one payment option. This will give your customers a choice to pick the payment method they’re most comfortable with.
Step 5: Build Your Online Presence
It’s essential to establish and maintain a strong online presence to give your online business the best possible start. Think about where your potential customers spend time online. Are they more active on social media, or would they prefer browsing a dedicated website?
A smart approach is to create profiles on at least two social media platforms that align with your target audience’s habits. This will help you reach a broader audience and make your business easier to find.
You can also start a website—it will give you even more control over your brand. With a website, you will be able to showcase your products or services, share updates, and provide key information.
