Kenya is a great place to live and work, but one thing that can make it difficult for new entrepreneurs, is the fact that there are many businesses that are more risky than others.
In this article, we will list 12 of the worst businesses to start in Kenya and why they’re so risky!
Starting an M-pesa business
Though once a lucrative business,the M-pesa agent business is no longer a great one because of over saturation of the market.This has resulted to low commissions that may not even be able to cover your overhead costs.
Another challenge of starting an M-pesa agency is fraud. Fraudsters have perfected the art of hacking and stealing money from M-pesa agents.You have to be constantly alert or all your earnings can be wiped out overnight.
Building a grocery store in a Nairobi’s high-density area .
In Nairobi’s high-density areas such as Kibera,there is a mama mboga in every corner. Therefore it is very difficult to build a successful grocery store as you might not be able to compete competitively in terms of price as they don’t have any overhead and running costs that you might incur.
A clothing boutique
If you’re not an fashion designer, your clothes will likely be very similar to what’s being sold in stores already.And with so many people starting their own online shops these days, it may be difficult for customers to find you amidst all that competition.
Nowadays every one has a smartphone .They can regularly go online from the comfort of their homes and do not need to visit an internet cafe to do this.For you to succeed ,you’ll have to keep your prices low and be content with a small customer base.
Printing company in Kenya
The risk here is that you’ll only receive work when other companies are out of ink or paper supplies.This means your profits will depend on your ability to predict when the companies will need your services.
Beauty salon or spa
These are very competitive fields to break into as there is a beauty salon in every corner in your town.To succeed, you have to be very aggressive in marketing and offer exceptional services so that customers can refer each other and keep coming back.
Food delivery service
This is both a high-risk and low-profit venture. The risk here is that you’ll have lots of competition, because everyone’s struggling with rising prices on groceries and cooking oil at the same time.
The other issue is that the margins on this business are low: you’ll be operating at very thin profit margins.