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18 Profitable Investment Opportunities in Kenya

ByTristram Ouma

Apr 19, 2022
investment opportunities in Kenya

Assume you have funds to invest and want to make more.

But you don’t know which Investment opportunities in Kenya you can start implementing.

Are you in any of the situation?

If you’re then this article is for you.

I will walk you through some of the best investment opportunities in Kenya so that you can pick any them and start investing.

But before any investment idea is implemented, you will need to do a feasibility study.

This is to ensure that the business can be profitable and sustainable.

Investment opportunities in Kenya are diverse given that the country has different regions which vary in climate and resources.

It also has a large population of young people with university degrees who cannot find employment.

Such people can be engaged in small-scale businesses or self-employment activities, especially if they have entrepreneurial skills.

With that said:

Here are investment opportunities in Kenya

1. Poultry farming

Poultry farming is one of the most lucrative businesses in Kenya.

The industry is growing steadily and rapidly while providing a balanced diet to Kenyans.

Anyone can start poultry farming, it’s not capital intensive and it is highly profitable.

Some of the best places to venture into poultry farming are Nairobi, Nakuru, Eldoret, Thika, and Mombasa. This is because in these places the demand is high and therefore high selling price.

The different categories of poultry include chicken (broilers, layers), ducks and guinea fowls (for meat production), and ostriches.

The technology used for rearing birds has also been improving over time as researchers look for ways to improve productivity.

This means that farmers who have invested in this sector can increase their outputs by modernizing their operations or increasing the number of birds they are rearing.

However, one of the challenges with poultry farming is diseases therefore if not managed properly it can lead to losses but if done correctly you will reap massive profits from the sale of eggs, broilers, or any other product you decide to sell from your farm.

2. Fish farming

Fish farming is the rearing of fish for commercial purposes.

It involves breeding, stocking, and harvesting fish for sale in the market.

It is a lucrative business in Kenya and also an investmen opportunity in Kenya that generates a lot of income especially when done on a large scale.

Growing demand for fish both locally and internationally has made this type of business to be very profitable in Kenya.

Fish farming is no longer an expensive investment as it used to be perceived before by many Kenyans.

The cost to start fish farming in Kenya depends on the type of fish species you want to rear and whether you are starting indoor or outdoor pond cultivation.

3. Dairy farming

The dairy farming industry is one that, like any other business, will require a lot of work and investment to run.

It all starts with the decision, “Do I want to be in this industry? Can I afford to start up a farm now?”

There are plenty of benefits of dairy farming, not only in terms of profit but also in terms of food security.

The productivity per cow—the number needed for survival—has increased over the years;

Hence:

It has become an increasingly profitable industry.

On the contrary, overpopulation has led to increased competition amongst farmers.

With the increase in demand and supply experienced by just one crop (milk), farmers have been forced to invest additional resources in their cattle stock management system. This means that there is more emphasis on herd health and nutrition and more emphasis on disease control as opposed to positive things such as feed conversion efficiency or yield per unit area since these factors contribute less directly to profit margins and sales volume.

4. Agriculture

For anyone interested in agriculture, Kenya is the place to invest. It’s one of the best investment opportunities in Kenya you can think of trying.

Agriculture is a very wide sector in Kenya and one of the most lucrative businesses in Kenya. There are several farming opportunities in Kenya for you to tap into. These include:

Farming crops like maize, wheat, and beans are good business in Kenya.

The area around Nakuru offers excellent land for farming as well as irrigation facilities and infrastructure that can be used by farmers, especially small-scale farmers who cannot afford the huge capital investments.

And here’s the good news.

The government has also put measures that help small-scale farmers to access market information thereby making it easier for them to do business.

In addition, farmers have been trained in modern methods of farming which has greatly improved their productivity.

So you can either hire a number of farmers who are experienced to manage your farm, or you can probably do it yourself.

With so many ongoing training you won’t have to struggle starting your business and managing it.

Vegetable farming is also a good investment opportunity in Kenya with tomatoes being among the most profitable vegetables to grow in the country.

You can begin growing vegetables with little capital as they do not require much land or water so you do not need to worry about having a lot of resources at your disposal before venturing into it.

Also, read passive income ideas

5. Real estate

There are several ways to make money through real estate investments.

  • Rental Income

When you buy a property, you can collect rent from the tenant who occupies the dwelling for an agreed period. This is your rental income and it can be used to pay out your home mortgage or even as an investment opportunity in itself.

  • Capital Appreciation

In simple terms, this refers to the increase in value of a capital asset over time, such as real estate property. For instance, if you purchase a plot at Ksh 300,000 today and sell after seven years at Ksh 1 million, then the difference is your capital appreciation which could have been earned through tax benefits or inflation.

  • Tax Benefits and Inflation Protection

Owning a property makes you eligible for certain tax benefits which help bring down your cost of ownership while protecting against inflation; that means that while the value of other goods keeps rising annually due to inflation, real estate serves as a hedge against this by increasing more than other assets’ values.

6. Virtual education

An increasing number of companies are offering online courses to their employees and potential clients.

With the demand for these courses steadily growing, there are many opportunities for investors in this market.

The global e-learning industry is experiencing a period of steady growth, with the market expected to reach $325 billion by 2025.

As businesses seek to train their employees in highly specialized areas, they are increasingly turning to online education platforms.

Millennials make up a significant portion of the workforce today, and they’re struggling with debt from student loans and rising housing costs — factors that have led them to pursue online learning options such as MOOCs (massive open online courses) at a higher rate than previous generations.

These platforms allow them access to high-quality education at relatively low cost.

In addition, the flexibility of online learning allows millennials who are constantly on the move for work or travel access to education without having to commit rigidly to one institution or city — which means they can continue pursuing their career goals while still investing in further education.

So if you’re wondering what investment opportunity in Kenya you should tap in, then this is certainly one of them.

7. Stock markets

You can also invest in stocks, and this is one of the most common ways to invest.

Investing in shares means that you are purchasing a portion of ownership into a company listed on the stock market.

There are 2 stock exchanges in Kenya: The Nairobi Securities Exchange (NSE) and the Rwanda Stock Exchange.

In both exchanges, there is an opportunity to invest in a variety of companies such as banks, insurance firms, telecommunication companies etc.

In order to trade in these markets you need to have a broker who works with your bank or open an account with any brokerage firm registered with them such as Kestrel Capital East Africa Ltd or Genghis Capital Limited.

After opening the account through the broker, you then purchase stocks from companies of your choice that are listed on either exchange and your bank will enable you to trade through an online portal normally known as CDSL-Central Depository & Settlement Corporation Limited (CDSL).

Investors can manage their stock portfolio themselves by buying and selling shares independently or they can opt for a managed service where their money is channeled into specific markets depending on their risk appetite.

8. Gold, precious stones and metals

The government of Kenya has created a conducive environment for foreign and local investors to invest in the mining sector.

This includes offering incentives such as investment tax breaks, reduction in royalties, exemptions on export and import duties and processing of all licenses within 21 days.

Therefore a good investment opportunity in Kenya to start or tap into. Next is…

9. Cryptocurrency

This is a new concept in the Kenyan market, and there are risks involved. However, with over 7 million Kenyans using mobile money and many making purchases through their phones, cryptocurrency seems to be particularly well suited for Kenya.

There are two popular cryptocurrencies in Kenya: Bitcoin and M-Pesa. Bitcoin is the most popular globally whereas M-Pesa was developed by Safaricom, one of Kenya’s largest mobile companies.

10. Cyber Security and data storage

Data Storage. As you may know, data storage is a key component of cyber security and the field has several cyber security considerations.

For example, keeping data stored in an encrypted format can be beneficial for privacy reasons and to secure it from theft or other malicious acts.

The Importance of Cyber Security

Also known as information technology security, cyber security involves protecting against attacks by maintaining confidentiality and integrity while making sure that systems are usable by their intended users.

It’s a priority for many organizations because they have sensitive information or financial transactions on their computers which could be exploited if not protected properly.

This implies that it’s one of the booming investment opportunities in Kenya.

11. Urban logistics and transport

The rise of online shopping and home delivery has led to a boom in urban logistics.

In fact, the combined global market size of urban logistics and transportation is estimated at $6.3 trillion, with e-commerce accounting for 15% of this market share.

As consumer behavior continues to shift toward purchasing goods and services online, the relationship between urban logistics and transportation will become even stronger. Making it one of the most popular investment opportunities in Kenya.

Therefore, companies that can provide unique solutions for the transport of goods are well-positioned to capture a significant portion of this growing market.

12. Stocking and selling of livestock

Raising livestock is one of the most profitable businesses in Kenya. The demand for live animals is high because people need them for domestic use (meat, milk, eggs, and manure), as well as for commercial purposes.

Moreover, the price of livestock products has been increasing in recent years, hence presenting an excellent opportunity for business-minded people to make a profit from it.

Although all types of livestock farming are good investments, here are the top choices:

  • Cattle rearing
  • Pig farming
  • Goat keeping
  • Poultry farming (broilers and layers).

13. Manufacturing of biscuits and drinks

Since all of the food you’re going to eat depends on your health, one of the most important things you can do is to invest in yourself.

Investing in yourself will make your business more successful because it’s easier to teach people how to make good biscuits and drinks than how not to make bad ones.

You’ll also find it easier once you’ve got that experience under your belt. Hence one of the best investment opportunities available in Kenya.

14. Mobile money transfer business

You can start a mobile money transfer business from home.

A mobile money transfer business can be run from home on a full-time or part-time basis. If you’re looking to earn an extra income, consider running this business on the side.

A mobile money transfer service is an avenue for earning passive income without putting in much effort.

The returns are very high and there is a low investment cost.

15. Growing mushrooms for food and export is an investment opportunity in Kenya

Mushroom growing is a profitable business in Kenya and many people are not aware of the benefits of mushroom farming.

Not only can you sell your harvest to restaurants and local markets, but you can also export them abroad to countries like China and Japan which have a high demand for mushroom imports.

As well as being low in calories and a good source of fiber, they are rich in protein and vitamins including B vitamins (niacin, riboflavin, thiamine), vitamin D2, vitamin C, and minerals such as potassium, phosphorus, and iron.

16. Supply of building materials

The construction industry is one of the largest industries in Kenya, and it is also one of the most lucrative businesses to venture into.

One of the reasons why it is so profitable is due to a huge demand for housing as well as other infrastructural developments.

Quarrying is another business that you can consider venturing into. It involves supplying building materials such as sand, gravel, and stones.

You can deliver these supplies using a pickup truck, a truck, or a lorry depending on your budget and experience level.

The good news with this type of business is that you don’t need any formal education to start up a quarrying business.

17. Cleaning and laundry services business

If you’re interested in starting a cleaning business, then this is a great investment opportunity for you in Kenya.

In addition to having a capital of Ksh80,000 – 100,000 to purchase your equipment and rent a suitable space for your operations, you also need great customer service skills and a passion for cleanliness.

You’ll have to decide what type of cleaning services you want to offer; most businesses go into the business of retail or contract cleaning.

You may choose to start the laundry business with a capital between Ksh50,000 – and 70,000 which will allow you to buy washing machines and other equipment required in the business.

To make it even more profitable on your particular budget, consider providing additional services such as ironing and dry cleaning while offering free delivery services as well!

After completing all set up activities above then proceed by marking yourself visible in the market by advertising through social media and local newspapers so that customers can see where they can get quality clothes without any hassle!

18. Miraa trading business in Kenya

If you’re interested in miraa farming, there are several things you should know.

First of all, this crop is not for the faint of heart: it’s a very labor-intensive crop to grow and harvest, and yields can be unpredictable.

However, this investment has the potential to pay off big in the long run: especially if you have a good relationship with buyers.

It’s also possible that you may end up making more money than farmers who grow other crops.

So that’s is my list on the top investment opportunities in Kenya that you can actually venture into. If you have any other I haven’t included in the list just comment below.

Tristram Ouma

I am a content marketing consultant, blogger, and freelance writer. I live in the beautiful city of Nairobi, Kenya with my family. My passion is to write as well as share unique content with my audience.

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