Starting a business with a capital of around Sh1,000,000 opens up a wide range of viable and profitable opportunities in Kenya’s growing economy. This amount allows you to move beyond micro-enterprises and set up a venture with structure, scalability, and long-term potential. However, the key to success lies in choosing the right sector, understanding market dynamics, and managing operations carefully.
Below is a detailed guide on some profitable business ideas you can start with a budget of Sh1 million in Kenya. These ideas consider market demand, competition, and potential returns.
- Hardware and Construction Materials Supply
Kenya’s construction sector continues to grow due to urban development, rural home-building projects, and increasing real estate investments. A hardware store supplying construction materials such as cement, steel rods, nails, roofing materials, and plumbing items can be highly profitable.
Start-up breakdown:
- Rent and shop setup: Sh150,000 – Sh300,000
- Initial stock: Sh500,000 – Sh800,000
- Licensing and permits: Sh20,000 – Sh50,000
Profit potential:
High, especially if located in fast-growing areas near housing developments or trading centers.
Tip: Build strong supplier relationships to get competitive wholesale rates.
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Wines and Spirits / Beer Distribution Business
The beverages sector in Kenya is consistently profitable. With Sh1 million, you can either set up a wines and spirits retail shop or become a beer distributor depending on your location and licensing.
Start-up breakdown:
- Licensing (varies by location): Sh60,000 – Sh300,000
- Good shop location and branding: Sh200,000 – Sh400,000
- Initial stock: Sh400,000 – Sh600,000
Profit margin:
Average margins range from 10–25%, with higher returns during weekends and holidays.
Tip: Ensure the business is located in a high foot-traffic area but compliant with proximity regulations.
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Modern Barber and Beauty Spa
Personal grooming services are in high demand, especially in urban areas. A barbershop combined with a beauty spa appeals to a growing middle class that values self-care and appearance.
What you need:
- Deluxe barber chairs
- Sterilizers and grooming machines
- Skincare and hair products
- Professional staff
Estimated cost allocation:
- Setup and interior décor: Sh250,000 – Sh500,000
- Equipment: Sh200,000 – Sh350,000
- Initial products and supplies: Sh50,000 – Sh150,000
- Working capital: Sh100,000 – Sh200,000
Income stream sources:
Haircuts, pedicure, manicure, facials, beard grooming, dread styling.
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Dairy Farming (5–10 High-Yield Cows)
With Kenya’s strong demand for milk throughout the year, dairy farming offers stable and scalable income. Instead of many cows, focus on fewer but high-quality milk-producing breeds such as Friesians, Ayrshires, or Jerseys.
Budget outline:
- 5 high-yield dairy cows: Sh500,000 – Sh700,000
- Zero grazing shed construction: Sh150,000 – Sh300,000
- Feeds and veterinary care: Sh100,000 – Sh200,000
- Milking equipment: Sh50,000 – Sh120,000
Daily earnings:
A single good cow produces 20–30 liters daily. Selling at Sh50 per liter could generate Sh5,000–Sh15,000 per day with 5 cows.
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Boutique / Fashion and Accessories Shop
Kenya’s fashion market is large and dynamic, especially in urban estates, universities, and online (e-commerce). With Sh1 million, you can sell:
- Designer clothing (men/women)
- Bags and shoes
- Kids’ fashion
- High-end thrift (mitumba grade 1)
Cost breakdown:
- Stock: Sh300,000 – Sh700,000
- Shop setup: Sh100,000 – Sh250,000
- Branding and marketing: Sh50,000 – Sh150,000
Tip: Consider social media selling to expand your reach.
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Mini Supermarket / Convenience Store
Urban estates increasingly prefer local convenience shops for daily needs. A well-stocked mini supermarket can serve this market effectively.
Requirements:
Reliable location with steady foot traffic.
Budget allocation:
- Rent and fittings: Sh200,000 – Sh400,000
- Initial stock: Sh400,000 – Sh600,000
- Licenses: Sh20,000 – Sh50,000
Profit margin:
5%–30% depending on items (bread, milk, sugar, snacks, cereals).
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ICT and Cyber Services Business
Digital services continue to grow across Kenya. A cyber café or ICT services center can offer:
- Photocopying, printing, scanning
- Online government services (eCitizen, KRA, NTSA)
- Computer training
- Online research, CV writing
Setup costs:
- Computers: Sh300,000 – Sh500,000
- Printer/copier: Sh80,000 – Sh200,000
- Shop: Sh100,000 – Sh200,000
- Working capital: Sh100,000
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Transport and Logistics (Motorbike / Tuk Tuk / Pickup Truck)
Transport remains one of the most effective businesses for daily revenue.
Examples:
- 3 motorcycles (bodaboda) managed with hired riders
- Tuk-tuk for town transport
- Pickup truck rental for cargo delivery
Each option generates steady daily income and allows scaling with time.
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