10 Profitable Businesses in Kenya to Start With 200k

This article will take you through some of the top businesses in Kenya that you can start with only 200k, with relevant resources on each.

Carson O.
12 Min Read
Buy and Sell

Do you have Ksh.200,000 stuffed away in your savings account or M-Pesa and are at crossroads on which businesses you can start in Kenya, that are both easy to manage and successful in the long run? Well, you are in the right place as this article will take you through some of the top businesses in Kenya that you can start with only 200k.

Of course, before selecting a business, it’s crucial to conduct a preliminary survey and ask yourself important questions.

Consider the following:

1. How much time are you willing to invest in the business?

Assess your availability and determine how much free time you can dedicate to the business. This will help you choose a venture that aligns with your schedule and commitments. Are you a student on Campus? Or rather, are you willing to let go of your current occupation for your newly set up business?

2. What are your skills and expertise?

Reflect on your strengths, abilities, and knowledge. Understanding your skills will enable you to leverage them effectively in your chosen business and increase your chances of success. For instance, if you have information on real estate, setting up a real estate agency business is the proper direction etc.

3. What are your interests and passions?

Identify your hobbies, passions, and areas of genuine interest. Building a business around something you love can provide motivation and satisfaction, making it more enjoyable and rewarding in the long run.

If you enjoy writing, setting up a blog and optimizing content for readers interested in the same topic will be the best way to utilize your money in building a business.

4. What is the market demand and competition?

Before settling on a specific business, map out a feasibility-viability-desirability map that will help you identify if people will want your product or service, and if would you make any money out of it. Observe the illustration below:

5. Are you open to learning and adapting?

Entrepreneurship requires continuous learning and adaptation. Consider your willingness to acquire new skills, stay updated with industry trends, and embrace change to thrive in a competitive business landscape.

Businesses you can start with 200k in Kenya

Before venturing into a business, it’s essential to ask yourself important questions and conduct a survey to ensure you make an informed decision. By considering factors like your available free time, skills, interests, budget, market demand, and willingness to learn, you can align your choices with your circumstances and increase your chances of success.

Once you have a clear understanding of your preferences and limitations, you can explore various business opportunities that require a modest investment of around Ksh.200,000 in Kenya. Here are ten potential ventures to consider:

A. Butchery

Setting up a butchery can be a profitable business, especially if located in a densely populated area where there is a steady demand for fresh meat products. With the right equipment and quality meat, you can attract customers and build a loyal clientele. All you have to do is follow the guidelines listed in this article and you will be in the right direction.

B. Laundromat

In our previous article, we discussed how to set up a successful laundry business in Kenya. The working budget was Ksh.250,000. The set-up is easy and the license application and approval process is quite easy.

As you set up and start running the business, you’ll realize that operating a self-service laundromat can be a convenient and lucrative business option. By providing washing and drying facilities to customers, you can tap into the busy urban lifestyle where individuals may not have access to laundry machines in their homes.

Important factors you will need to consider include:

  1. Logistics and location
  2. Inventory, supplies & miscellaneous expenditure
  3. Marketing & promotion

C. Nail parlor

If you have a flair for creativity and an interest in nail care, starting a nail parlour can be a viable choice. Offering various nail services, including manicures, pedicures, and nail art, can attract customers who value well-groomed nails.

You’ll be surprised at how many ladies are willing to spend on such services, especially in urban centres or near academic institutions like Universities or Colleges.

Setting up such a business will require special knowledge that can easily be acquired from other established entrepreneurs or YouTube.

D. Retail shop

As described in this post, a retail shop (also known as duka) in Kenya, is a store that sells products to customers in small quantities. These products are usually sourced from wholesalers or intermediate sellers who offer them at a cheaper price. From there, the retail shop owner sets his/her prices, being keen not to overcharge customers, while at the same time, maximizing profits.

Establishing a retail shop allows you to sell a wide range of products, catering to the needs of the local community. You can choose to specialize in a specific niche, such as groceries, electronics, or household items, based on market demand and competition in your area.

Further, employing good marketing strategies and having good customer relations will set the path for your entrepreneurial success.

E. Mitumba Business (Second-hand clothes)

The Mitumba business involves selling second-hand clothing items. It can be a profitable venture as many people seek affordable and fashionable clothing options. By sourcing quality second-hand clothes and offering them at competitive prices, you can cater to a broad customer base.

With Ksh.200,000, you will have more than enough that is required to set up this kind of venture. Here is the breakdown of what you will need:

Venue Cost (KES)30,000
Recurring Cost (KES)5,000
Inventory Expenditure (KES)165,000
Grand Total (KES)200,000

­For a complete breakdown, read the full analysis here. Startup costs may vary but the general startup idea is the same.

F. Import and sell ladies’ shoes

If you have an eye for fashion and trends, importing and selling ladies’ shoes can be a lucrative business. By staying updated with the latest styles and offering a variety of footwear options, you can attract customers looking for fashionable and comfortable shoes.

G. Small salon

Starting a small salon can be a rewarding business, particularly if you have expertise in hair styling, grooming, and beauty services. With the right skills and equipment, you can provide haircuts, hairstyling, facials, and other salon services to customers in your area.

H. Fruit juice and pudding

With an increasing focus on health and wellness, a fruit juice and pudding business can be a refreshing choice. By offering a variety of fresh fruit juices, smoothies, and healthy puddings, you can cater to health-conscious individuals seeking nutritious and tasty options.

Here is a small list of what you will need to start this business:

Commercial JuicerUsed to extract juice efficiently
BlenderVersatile blender for blending fruits & creating smoothies
Refrigeration EquipmentRefrigerators and freezers to store fresh fruits, pudding ingredients, etc.
Display CabinetsAttractive cabinets to showcase and store bottled fruit juices and pudding cups
Preparation EquipmentCutting boards, cutlery, measuring utensils, bowls, and other kitchen tools
Packaging MaterialsBottles, caps, labels, and packaging supplies for bottling fruit juices
Pudding Cups and LidsDisposable or reusable cups and lids for serving puddings
IngredientsFresh fruits, fruit pulps, sweeteners, flavorings, and thickening agents for juice and pudding
Storage and Shelving UnitsRacks or shelves for organizing and storing ingredients and products
Cleaning SuppliesCleaning agents, brushes, and towels for maintaining hygiene
LicensesObtain the necessary licenses and permits required for operating a food business

I. Barbershop

Opening a barbershop can be a profitable venture, targeting the male grooming market. With skilled barbers and a comfortable environment, you can provide haircuts, beard grooming, and other grooming services, appealing to customers looking for quality grooming experiences.

To start a stable Kinyozi business, you will need at least Ksh.200,000. Of course, this capital requirement is only applicable to entrepreneurs looking to start their shops in high-end business areas such as big towns and cities.

If, however, you are targeting a smaller and less developed area, your startup costs could go to as low as Ksh.50,000.

Read more here.

J. Liquor store

Running a liquor store can be a lucrative business opportunity. By offering a wide selection of alcoholic beverages, including beer, wine, and spirits, you can cater to customers’ preferences and capitalize on their demand for quality drinks.

Liquor stores have the disadvantage of being closely monitored by law entities. Furthermore, wine-selling shops are usually under high scrutiny and taxes as the government is generally against a drunk population. Despite this business being very lucrative, you will have to put in a lot of energy and perseverance to keep your venture afloat.

See the full tutorial here.


Remember, starting a business requires careful planning, market research, and dedication. It’s important to assess the feasibility, competition, and potential profitability of your chosen business idea. Additionally, maintaining quality products or services, providing excellent customer service, and adapting to changing market trends will contribute to your long-term success.

In conclusion, by asking yourself the necessary questions and considering the listed business options, you can make an informed decision on the most suitable business opportunity to pursue with an investment of around Ksh.200,000 in Kenya. Remember to plan meticulously, stay committed, and continuously strive for excellence in your chosen venture.

Share This Article
I am a multi-faceted professional with a strong foundation in Business and Finance, honed since 2020. Additionally, I possess a deep passion for automobiles, serving as an avid car enthusiast. In parallel to my diverse interests, I am also a dedicated student pursuing a career in the medical field.
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *