The internet has revolutionized the way we do business and has opened up a world of opportunities for people all over the globe, including in Kenya. With just a computer and an internet connection, anyone can start an online business and reach a global audience. This has caused people to look deeper into how to make money online in Kenya as a way to fetch themselves some extra income.
One of the most popular online business opportunities in Kenya is e-commerce. According to a report by the Communications Authority of Kenya, the e-commerce industry in the country has seen significant growth in recent years, with online sales reaching KES 41.9 billion (about $410 million) in 2020. This growth can be attributed to the increasing use of mobile money, which has made it easier for people to make online purchases.
Another popular online business opportunity in Kenya is freelancing. Thanks to the internet, freelancers in Kenya can now offer their services to clients around the world. This has led to the growth of platforms such as Upwork, where freelancers can find work in fields such as writing, graphic design, and social media management.
In addition to e-commerce and freelancing, the internet has also created opportunities for people in Kenya to start their own blogs and YouTube channels. Many Kenyans have been able to monetize their blogs and YouTube channels through advertising, sponsorships, and affiliate marketing.
The internet has also provided opportunities for people in Kenya to start their own digital marketing agencies. With more and more businesses going online, there is a high demand for digital marketing services such as search engine optimization (SEO), social media marketing, and email marketing.
One of the biggest benefits of starting an online business in Kenya is that it allows entrepreneurs to reach a global market. For example, an e-commerce store in Kenya can sell products to customers in the United States or Europe, thanks to the internet. This means that online businesses in Kenya have the potential to generate significant income and create jobs for people in the country.
The internet has created many opportunities for people in Kenya to make money. From e-commerce and freelancing to blogging and digital marketing, the possibilities are endless. If you have a skill or idea that you think could be successful online, now is the time to take the plunge and start your own online business. Before we explore some of the best online business ideas in Kenya, let’s first take a look at important tips that will help you get started.
Important Tips For Starting an Online Business in Kenya
Starting an online business in Kenya requires careful planning and effort, but with the right strategies and mindset, you can build a successful and sustainable business. Below are some important things that can make your online venture a successful one;
Define your business idea and target market
The first step in starting an online business in Kenya is to have a clear idea of what you want to sell or offer. Research your target market to understand their needs, preferences, and behaviors, and tailor your business idea to meet those needs.
Analyzing the competition and their strategies can also give you valuable insight and help you create a unique selling proposition. In addition, staying aware of the latest industry trends and regulations is essential to ensure that your business complies with all applicable laws and regulations.
Creating a business plan is important to ensure that the online business you develop is feasible and sustainable. Outline your company’s goals, objectives, and strategies, and make sure that you have enough capital to cover the necessary costs to launch and maintain the business.
Determine your business model
There are several business models you can use for your online business in Kenya, including selling products, offering services, creating and selling digital products, or using a subscription-based model. Consider which model will work best for your business idea and target market.
When determining the best model, consider scalability, sustainability, and the amount of effort required to generate revenue. If you find that your current model isn’t working, don’t be afraid to pivot and make adjustments until you find a model that works for you.
Online businesses can require a lot of trial and error, so it is important to have a flexible business model that can adapt to changing conditions. You should always do plenty of research before you decide which one to go with. Look around and see what’s working for other businesses in your niche and adjust the model according to your needs.
Choose a domain name and website platform
Your domain name is the URL that people will use to access your website, so choose a name that is easy to remember and relevant to your business. There are several website platforms available for creating an online store, including Shopify, WooCommerce, and Magento. Choose the platform that best meets your needs and budget. It’s important to ensure your domain name is easy to remember and relevant to your business.
An easy-to-remember domain name helps visitors find your website without difficulty. Make sure the domain name is not too long, as visitors may not remember it. Furthermore, a domain name that reflects your business provides customers with an understanding of the website’s purpose. You should also consider the cost of hosting and any other related expenses before selecting your domain name.
You will need to think about the technical aspects of running an online business. You'll need to decide whether you want to take on all the technical aspects yourself or outsource them to a professional. Taking some time to research the different options available can help you make the best decision for your business.
Set up a payment gateway
In order to receive payments from customers, you'll need to set up a payment gateway. There are several options available in Kenya, including M-Pesa, IntaSend, and PayPal. Research the different options and choose the one that best meets your needs. Make sure you understand the fees associated with each option and the rules and regulations that you need to follow. It's important to provide customers with the information they need to complete their payments correctly.
Ensure that your payment gateway is easily accessible, intuitive, and secure. Taking all of these steps will help ensure that your online business is correctly set up to accept payments from customers. Each payment gateway offers its own set of features and benefits, so make sure you understand the differences before committing to anyone. You'll also need to make sure that you comply with the regulations of the payment gateway you choose.
Create high-quality product or service offerings
To attract and retain customers, it's important to offer high-quality products or services. Take the time to research and test your offerings to ensure that they meet the needs and expectations of your target market. Make sure that the products or services that you provide are of high quality. You should also consider offering a variety of products or services so that your customers have plenty of options to choose from.
Once you have identified your target market, understanding their needs and preferences is key to offering the right products or services. Ensure that you have a clear pricing strategy in place to ensure that you remain competitive while still generating enough profit.
Finally, it is important to keep your customers informed about any changes or new offerings. Regular communication with your customers is essential to ensure that they remain loyal and satisfied with their purchase.
Develop a marketing plan
A strong marketing plan is essential for attracting and retaining customers for your online business in Kenya. This can include social media marketing, email marketing, content marketing, and search engine optimization. Determine which marketing channels will be most effective for reaching your target audience and allocate your resources accordingly.
Investing in analytics tools can help you identify which channels are most effective for acquiring new customers and retaining them. Also, consider partnering with like-minded businesses to cross-promote each other's offerings.
Having a reliable customer support system in place is also essential for providing a positive customer experience and building customer loyalty. You must also create a website optimized for mobile devices to ensure that your target audience can easily access your products and services.
Build a strong online presence
In today's digital age, it's important to have a strong online presence to attract customers to your business. This can include creating a website, social media profiles, and engaging with customers through online reviews and ratings. An important part of having an online presence is making sure that your content is dynamic and engaging.
High-quality content helps to show customers that you are trustworthy, reliable, and knowledgeable. Additionally, it is essential to have an effective search engine optimization (SEO) strategy in place. Optimizing your website can help customers find your business more easily and can also help you rank higher in search engine results.
Stay up-to-date with regulations and compliance
There are several laws and regulations that apply to online businesses in Kenya, including the Data Protection Act and the E-Commerce Act. Ensure you are familiar with these regulations and that your business is compliant. It is essential to create a privacy policy for your business, including how you collect, process, and store customer data.
You should also pay attention to the necessary licenses and permits that are required for running an online business in Kenya. Moreso, it is essential to protect your business from cyber security threats. To prevent data breaches or cyber-attacks, you should implement strong passwords, two-factor authentication, and firewalls.
Invest in customer service
Providing excellent customer service is crucial for the success of any business, and this is especially true for online businesses. Make sure you have systems in place to respond to customer inquiries and resolve any issues quickly and efficiently. Invest in a reliable customer service platform and make sure your customers have easy access to customer support.
Utilize customer feedback surveys and review sites to learn about customer experiences with your business. This can help you make improvements and ensure you are delivering the best possible service. You can also use data-driven approaches to understand customer behavior and trends and leverage this insight to improve customer service and satisfaction. Investing in customer experience analytics can be just as important as providing quality customer service.
Keep track of your finances
It's important to keep track of your finances in order to understand the financial health of your business and make informed decisions. Use tools like accounting software and financial reports to track your income, expenses, and profitability. This will give you a better understanding of the financial health of your business by providing insights into areas of strength, weaknesses, and opportunities.
On top of that, you should establish a budget and use it as a guide to help you manage your finances. Sticking to your budget will help you to forecast your cash flow, avoid debt, and allocate resources towards your priorities. Lastly, look for ways to save money where possible. This could include negotiations for better prices for services, or even setting up an in-house team to handle tasks that can be done internally.
Top 7 Best Ideas to Make Money Online in Kenya
E-commerce
Setting up an online store and selling products through a website or platform like Amazon or Jumia can be a great way to make money online in Kenya. One key to success in e-commerce is finding a niche or specialty that sets your products apart from the competition. For example, you could sell handmade jewelry, artisanal food products, or eco-friendly home goods. You'll need to handle logistics and shipping, but you'll also have the potential to reach a wide audience and earn a good income.
Pros
- Can reach a wide audience through online platforms like Amazon and Etsy
- Ability to sell a wide range of products
- Potential for a large customer base
Cons
- Need to handle logistics and shipping
- Competition with other online sellers
- Potential for negative reviews or customer complaints
Digital marketing
Many businesses in Kenya are in need of help with online marketing, and offering your services as a digital marketer can be a lucrative way to make money online. This could include search engine optimization, social media marketing, and email marketing. You'll need to stay up-to-date with the latest strategies and tactics, but you'll have the potential to work with a variety of clients and earn a good income.
Pros
- Potential for a large and varied client base
- The chance to work remotely
- Opportunity to stay up-to-date with changing digital marketing strategies
Cons
- Need to continuously find new clients
- Potential for fluctuating income
- Competition with other digital marketers
Freelance writing
If you have strong writing skills, you could consider offering your services as a freelance writer. This could include blog posts, articles, web content, and more. You'll need to continuously find new clients and meet deadlines, but you'll also have the opportunity to work on a variety of writing projects and earn a good income.
Pros
- Opportunity to use writing skills in a professional setting
- Lucrative pay that can come in consistently if you have a pool of clients
- Ability to work remotely
Cons
- Need to meet deadlines
- Limited creativity due to guidelines and requirements
Graphics design
If you have design skills, you could offer your services as a freelance graphic designer. This could include creating logos, websites, social media graphics, and more. You'll need to continuously find new clients and meet deadlines, but you'll also have the opportunity to work on a variety of design projects and earn a good income.
Pros
- Chance to work with people from different countries
- Opportunity to learn from working on many design projects
- Remote operation
- Flexible working hours
Con
- Potential fluctuating income
Online tutoring
If you have expertise in a particular subject, you could consider offering online tutoring services. This could include one-on-one sessions or group classes. You'll need to continuously find new students and meet their needs, but you'll also have the opportunity to share your knowledge and help others succeed.
Pros
- Chance to work with students from around the world
- Flexible working hours
- Work from the comfort of your home
Con
- Need to continuously look for students
Virtual assistance
Many businesses and individuals need help with tasks such as scheduling, data entry, and customer service, and hiring a virtual assistant can be a cost-effective solution. You'll need to continuously find new clients and meet their needs, but you'll also have the opportunity to use a wide range of skills in a professional setting.
Pros
- Using a wide range of skills professionally
- Opportunity to work with several clients
Con
- Need to always strictly follow client instructions
Blogging
If you have a passion for a particular subject and strong writing skills, you could consider starting a blog and monetizing it through advertising, sponsored content, and affiliate marketing. You'll need to continuously create new content and build an audience, but you'll also have the opportunity to share your knowledge and passion with a wider audience.
Pros
- Potential for passive income through affiliate marketing, advertising, and sponsored content.
- Chance to share your knowledge with a wider audience
- Remote operations
Cons
- Competition with other bloggers
- Consistent content creation
The Best Way to Get Paid
Whether you’re in the e-commerce sector or into freelance writing, getting paid for your products and services will always be a big deal. You must have done all the hard work as stated earlier. Spending a lot of time researching your business model, and setting up a website, only for you to screw it all up with payment; there’s nothing more painful than that. As a result, you must always choose a good payment provider to trust with your money, which is where IntaSend comes in.
IntaSend makes it easy for online businesses to collect payments from their customers and clients, which can be done in several ways, including card payments, mobile money, Bitcoin payments, and ACH payments. Benefits of using IntaSend to get paid include:
- Multiple payment options
- Bank-level security and PCI-DSS compliance
- 24/7 customer support
- Fast payouts/settlements
- Easy integration of payment API
- No-code payment links
- Feasible KYC
Cover Photo by Myriam Jessier on Unsplash
