8 Surprisingly Worst Businesses To Start in Kenya

Last updated on June 13th, 2023 at 09:57 am

Are there the worst businesses to start in Kenya?

Yes, Kenya is a beautiful country with rich culture and plenty of opportunities. The business environment here is quite conducive for new businesses to emerge and thrive. 

However, there are certain types of businesses that one should avoid starting in Kenya right now because they will not be successful or profitable. Here are the worst businesses to start in Kenya right now.

The top 10 worst businesses to start in Kenya right now according to recent surveys

1). Betting Firm

Kenya has a large population of bettors, with an estimated 2.5 million people betting regularly. However, this is a worst business to start in Kenya because of the many risks associated with it. 

First, the government has imposed tighter restrictions on gambling advertising, so it can be difficult to attract customers. 

Second, the industry is highly regulated, and operators must have a license from the government. This process can be expensive and time-consuming, and there is no guarantee that you will be granted a license. 

Third, competition is fierce, and there are many established operators who have a significant advantage over new entrants. Finally, profits are razor thin and margins are low, so it can be difficult to make money in this industry.

2). Photography Business

Kenyan entrepreneurs looking to start a photography business have a host of reasons to be wary. 

The first reason is that this is not a very lucrative business to start in Kenya. The market for photography services is small, and there is stiff competition from established players. This means that it is hard to make a profit in this industry, especially when starting out.

Another reason why this may not be the best business to start in Kenya is the high costs associated with running a photography studio. Photography equipment and supplies are expensive, and you need to have a good understanding of lighting and photo editing software if you want to produce high-quality images. 

Additionally, you will need to hire professional photographers, who can be quite costly.

Now, say you brace all odds and established a photography business in Kenya, clients will want to pay so little for these services?.

3). Software Company

Software companies are a great investment for anyone looking to start a business in Kenya. 

They provide essential services to both the public and private sectors, and their products are used by people all over the country. However, there are a few things you should know before starting one of these companies. 

First, software companies can be expensive to start up. You will need to invest in software licenses, hardware, and training for your employees. Second, this is not a business that is forgiving of mistakes. 

If you don’t have a good product or if you are not able to keep up with changing technology, your company will quickly become irrelevant. 

The worst part?

Most Kenyan companies would rather stay analog than integrate technology into their businesses!

As such, even though you may have a really great idea, who will buy?

Finally, competition is fierce in the software industry. There are many other companies competing for market share, so you will need to be aggressive in order to succeed.

Remember in some instances, you will be competing with established brands like Safaricom. These companies have deep pockets and can splash millions on advertising!

4). Travel Agency

A travel agency is another one of the worst businesses to start in Kenya. 

Why? 

First, the travel industry is extremely competitive. There are already a lot of established agencies out there, and it’s tough to break into the market. 

Second, the overhead costs associated with running a travel agency are high. You need to have a lot of money saved up in order to get started. 

And finally, it can be difficult to generate profits in this industry. Most travelers only book trips a few times a year, so it can be hard to make enough money to cover your expenses.

If you’re thinking of starting your own travel agency, think again. There are much better options out there.

5). Insurance Company

Thinking of starting an insurance agency in Kenya? Think again!

Starting an insurance company can be a risky proposition. The industry is highly regulated, and the barriers to entry are high. 

In addition, the competition is fierce, and the margins are slim. Insurance companies also require a lot of capital to start up, and they are not very profitable businesses. 

As a result, it is not a good idea to start an insurance company if you are looking for a quick return on your investment.

6). Political Blogging in Kenya

Yes, you must have of so-and-so blogger made this amount of money.

But is it really worth it?

There are a number of reasons why political blogging is a bad business to start in Kenya. 

And the first reason is that it is very hard to make money doing it. Most political blogs rely on advertising, but competition for ad space is fierce and the rates that advertisers are willing to pay are often low. 

In addition, the readership of most political blogs tends to be relatively small, which means that there is not a lot of money to be made from advertising.

A second reason why political blogging is a bad business to start in Kenya is that it can be very time-consuming. 

You see, political bloggers often have to spend a lot of time researching the latest news and developments in order to write timely and relevant posts. They also have to spend time interacting with readers in the comments section and moderating any discussions that take place there.

Finally, political blogging can be a risky business in Keny. 

Why?

Because bloggers often take strong positions on controversial issues, they can easily find themselves in the middle of heated debates. This can lead to personal attacks and even threats of violence. 

And don’t forget politics are seasonal.

So, when you are not talking trash to someone, who will be feeding your family?

For these reasons, political blogging is not a good business idea in Kenya.

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7). News Blog

You bet if you can start a blog like Tuko.co.ke, you can be smiling to the bank sooner.

Well, that may remain a pipe dream.

Why?

First, it’s extremely competitive and there are already established players in the space. Can you really pull off something better than Nation.Africa?

Second, it requires constant effort to keep up with the latest news and churn out new content on a regular basis – something that most people can’t sustain over the long term. 

Finally, advertising revenues for online news sites are notoriously low, so it’s very difficult to generate enough revenue to support a full-time business. 

I hear Mpasho and Ghafla! Were all banned from Google AdSense? 

If you are kicked out from this platform, you won’t be accepted anywhere else.

For all of these reasons, I wouldn’t recommend starting a news blog as a business venture in Kenya.

8). Taxi/Limo Service

Starting a Taxi service is another one of the worst businesses to start in Kenya.

And there are a few reasons why starting a Taxi service may be difficult. 

One reason is that the taxi industry is highly regulated. In most cities, there are specific regulations about how many taxis can operate in the city, what kind of vehicles can be used as taxis, and what fares can be charged. 

If you want to start a taxi limo service, you will need to make sure that you are in compliance with all of the relevant regulations.

Another reason why it may be difficult to start a taxi limo service is that there is already a lot of competition in the industry. There are many companies that offer online services.

Trust me, it can be difficult to compete with these established companies like Uber, Bolt, and Wasili.

Finally, starting a taxi service can be expensive. You will need to purchase a vehicle, hire drivers, and pay for fuel. 

You may also need to obtain insurance coverage for your business. These expenses can add up quickly, so you will want to make sure that you have enough money saved up before starting your business.

Worst Places To Invest in in Kenya

Security is a major concern when investing in Kenya. In recent years, there have been several high-profile terrorist attacks in the country, including the Westgate Mall attack in 2013 and the Garissa University College attack in 2015.

The Kenyan economy is also quite unstable. The country has experienced periods of high inflation and currency devaluation over the past few years. This makes it difficult to predict what will happen with investments made in Kenya.

Kenyans can be very corrupt. Bribery and corruption are widespread problems in Kenya, and this can make it difficult to do business in the country.

That said, here are some of the worst places to invest in Kenya:

a). North Eastern Region

The North Eastern Province is one of the most volatile and dangerous areas in Kenya. There have been several terrorist attacks in this region, including the Westgate Mall attack and the Garissa University College attack. The security situation in this area is very unstable, which makes it a risky place to invest.

b). Coast Region

The Coast Province is another dangerous place to invest in Kenya. This region has a high crime rate and is also prone to political violence. There have been several assassinations and riots in this area over the past few years.

c). Arid and semi-arid areas with little rainfall and high temperatures

These areas are prone to drought and famine. The lack of water and food can make it difficult to do business in these regions.

d). Slums and informal settlements

Slums and informal settlements are often located in dangerous areas with high crime rates. They also tend to be overcrowded, which can make it difficult to provide adequate services such as healthcare, education, and security.

How To Choose The Right Business To Start In Kenya

There are many factors to consider when choosing the right business to start in Kenya. Some of these factors include:

a). The size of the market for your product or service

The Kenyan market is quite large and growing. This means that there is room for businesses of all sizes. However, it is important to consider the size of the market for your particular product or service.

b). The level of competition in your industry

In Kenya, there is generally a lot of competition in most industries. For this reason, it is important to choose an industry where you can compete effectively. Consider factors such as your unique selling proposition and target market when choosing an industry.

c). The investment required to start and grow your business

Starting a business in Kenya requires a significant amount of capital. For this reason, it is important to consider the investment required when choosing a business. Choose a business that you can afford to invest in without putting yourself at financial risk.

d). The availability of resources and infrastructure

Kenya has a large population and an ever-growing economy. This means that there are many resources and infrastructure available for businesses. However, it is important to consider the availability of these resources in your particular industry or sector.

e). The regulatory environment

The Kenyan government has put in place various regulations to protect businesses and consumers. It is important to consider the impact of these regulations on your business before starting up.

Final Thoughts

In conclusion, the businesses listed above are the worst to start in Kenya right now. 

The reason being is that they are either not profitable or have a lot of competition. If you are looking to start a business, there are a number of other options that you can explore. 

For example, starting a business in the agriculture or technology sector may be more lucrative. 

Finally, if you decide to go ahead and start one of the businesses listed above, make sure that you do your research and plan accordingly.

Worst Businesses to Start in Kenya Frequently Asked Questions

Starting a business in Kenya can be a daunting task. There are many steps to take and things to consider before starting your business. Here are some tips to help you get started.

The first step is to do your research and come up with a business idea. What do you think is missing in the market? What can you offer that is different from your competitors?

Once you have a business idea, you need to create a business plan. This document will outline your goals, strategies, and how you plan on achieving them.

Next, you need to register your business with the government and get all of the necessary licenses and permits.

You will also need to set up a bank account for your business and get it registered with the relevant authorities.

Once your business is up and running, you need to start marketing it to potential customers. This can be done through various channels such as online marketing, print advertising, or even word-of-mouth.

Finally, you need to always be looking for ways to improve your business and make it more successful. This could involve expanding your product range, improving your customer service, or finding new marketing channels.

There are a few reasons why it can be hard to start a business in Kenya. One reason is that the country has a lot of regulations and paperwork that need to be completed in order to start a business. Additionally, the business climate can be challenging, as there is a lot of competition and it can be difficult to get funding. Finally, the infrastructure in Kenya is not always reliable, which can make it difficult to run a business.

There is no one-size-fits-all answer to this question, as the best way to start a business in Kenya will vary depending on the specific business. However, some tips on starting a business in Kenya include registering your business with the relevant authorities, obtaining the necessary licenses and permits, and building a strong business plan. Additionally, it is important to market your business effectively and create a good customer base.

There are a number of businesses in demand in Kenya. Some of the most popular businesses include restaurants, hotels, retail stores, and transportation companies. There is also a high demand for businesses that provide services such as accounting, legal, and marketing services.

There is no definitive answer to this question since it depends on the individual’s skills, experience, and resources. However, some businesses may be more challenging to run than others, such as those that require a lot of technical knowledge or those that are highly competitive and require a lot of marketing and advertising.

Kenya has many successful businesses, but the one that is growing the fastest right now is the mobile money industry. It is estimated that this industry will be worth $2.5 billion by 2020, and it is currently worth $1.1 billion. This rapid growth can be attributed to a number of factors, including the increasing popularity of mobile devices and the fact that Kenyans are very comfortable with using them for financial transactions. In addition, there are a number of mobile money transfer services available, which makes it easy for people to send and receive money.

There are a few different businesses that could be considered the most profitable in Kenya. One of these businesses is agriculture. Agriculture is very popular in Kenya, and it is responsible for a large percentage of the country’s GDP. There are many different types of agriculture that can be profitable in Kenya, such as dairy farming, poultry farming, and horticulture.

Another business that is very profitable in Kenya is tourism. Tourism has been growing rapidly in recent years, and it is now one of the country’s leading industries. There are many tourist destinations in Kenya, such as Mount Kilimanjaro, Masai Mara National Reserve, and Lake Victoria.

Starting an offline taxi business in Kenya may not be a wise idea. The industry is facing competition from cheaper and more convenient online taxi services, and the high tax rates imposed by the government make it difficult to operate profitably.

The first worst business to start in Kenya in 2023 is the betting firm. The government has been tightening its regulations on the betting industry in Kenya, making it challenging to operate profitably.

The second worst business to start in Kenya in 2023 is starting a matatu business. The industry is oversaturated and is facing many challenges such as government regulations and high operational costs.

The fourth worst business to start in Kenya in 2023 is a tender business. The government tends to award tenders to well-established companies, making it hard for new businesses to get government tenders.

Starting a cyber cafe business may not be a good idea in 2023. Many people have smartphones and affordable internet bundles, making it more convenient for them to access the internet. This means that the demand for cyber cafes is reducing steadily.

The sixth worst business to start in Kenya in 2023 is the insurance business. The insurance industry is highly competitive, and starting a new insurance company in Kenya may not be a walk in the park.

Starting a travel agency business in Kenya may not be a wise business investment in 2023. The industry is facing many challenges such as government regulations, competition, and the effects of the pandemic.

Some untapped business ideas in Kenya may include starting a green energy business, offering daycare services, or starting a specialized tour company.