Worst Businesses to Start in Kenya (Beware Of Them)

If you are looking to start a business in Kenya and want to be at caution, there are many worst businesses to start in Kenya that you should be aware and stay away from. If that’s why you’re here, then you are on the right page. keep reading

There are different kinds of businesses you would want to avoid starting in Kenya. These can be a complete disaster, and you might not recover from them. Some businesses are just not profitable in Kenya, and you should stay away from them.

Even though many of them might look very easy to set up, you should avoid them. So let a look at some of the worst businesses to start in Kenya.

>> Helpful Content: How to Start a Blog in Kenya: The Complete Definitive Guide

Worst Businesses to Start in Kenya

There are a few businesses that are not recommended to start in Kenya, due to the high risk of failure. Here’s a list of the most difficult business ideas to start in Kenya.

 

Travelling & Tourism business in Kenya

The travel & tourism industry is one of the worst businesses to start in Kenya for a couple of reasons. First, it is an extremely saturated market. There are already many players in this space, and each has a loyal customer base.

This makes it very difficult to make a name for yourself and gain an advantage over your competitors. The other reason why it’s one of the worst businesses to start in Kenya is that it is weather-dependent.

This means that you are very likely to experience significant fluctuations in the number of customers visiting your business. This could be a good thing if you have a robust marketing strategy, but it also means that you need to be able to adapt to the changes that are a normal part of the business.

Helpful Content: How to Make Money Online in Kenya Through Mpesa

Shylock business

 

In Kenya, the shylock business has a bad reputation. This is thanks to the many people who have taken advantage of customers in the past and misused this business model.

If you want to start a shylock business, then you will need to find a way to distance yourself from these people and their shady practices. There is a place for a legitimate shylock business, but it is going to be very difficult to establish.

Betting Firm

 

Another one of the worst business ideas to start in Kenya is a betting firm. While there will always be a demand for betting, it is very difficult to start a profitable gambling business.

The first challenge is to get the appropriate licenses. If you want to provide betting for sports, horse racing, etc. then you will need to get a license from the Kenya Revenue Authority.

There is also the challenge of getting people to trust your business. Many trusting individuals will not want to use your service because they know that betting has a high chance of getting them into financial trouble.

However, if you stay legitimate and provide a high-quality service, there is a chance to make a profit from this type of business.

Suggestion: How to Make Money Online in Kenya [9 Best Ideas]

Offline taxi business

This is a very common type of business in Kenya, but it is also one of the worst business ideas to start. There are two main reasons for this. First, there are already many established taxi companies in Kenya and it will be difficult to compete with them, and second, the business model has been broken by the internet.

There are many challenges to running a successful taxi business in Kenya. If you manage to get enough customers and earn enough money from your taxi company, then you run the risk of getting robbed or attacked by criminals.

It is also possible that your vehicle might break down or be involved in an accident; if this happens then you will have no way of making money until it gets fixed.

In addition, since most Kenyan roads are terrible, you will spend a lot of time on the road stuck in traffic jams and other delays that will make your trip take longer than normal.

The future of transportation is online with services like Uber and Taxify which allow people to order taxis online using their phones. This means that someone who wants a ride can simply open their app and order a car without having to go through any other steps.

This type of service completely changes how people get around since they don’t have to deal with things like traffic jams or find a taxi driver who is willing to drive them where they need to go at an affordable price.

Photography

The photography business is one of the worst businesses to start in Kenya. This is because there is a very low barrier to entry.

Anyone with basic knowledge of a camera can start a photography business. Because of this, it is very difficult to make a profit. Since you are in direct competition with many people who are just as capable as you are, you need to find a way to stand out.

You can do this by offering a specialized service or by marketing yourself better than your competitors.

Trending: Apps That Pays in Kenya [Best Ones]

Waste Management Business

Starting a waste management business is one of the most difficult businesses to start in Kenya. This is because the government has already taken steps to regulate this sector.

There are already many established companies that are in charge of collecting and disposing of waste from businesses and residential areas.

If you want to start this business, you will need to find a novel way to stand out from the existing companies. However, because the government has already taken control of the situation, it is unlikely that you will be able to make a profit from this business.

Insurance Business

 

The insurance business is one of the worst businesses to start in Kenya. There are very few insurance companies in Kenya that turn a profit, and most of them are either government-owned or very old.

Investors stay away from the insurance business in Kenya due to its inefficiency and high costs of doing business. In Kenya, insurance premiums are taxed at a rate of 15%, which makes it unattractive.

Additionally, the commission structure in Kenya’s insurance business is very low, which makes it unprofitable. Investors stay away from the insurance business in Kenya due to its inefficiency and high costs of doing business.

In Kenya, insurance premiums are taxed at a rate of 15%, which makes it unattractive. Additionally, the commission structure in Kenya’s insurance business is very low, which makes it unprofitable.

This is because the industry is extremely competitive and has very low-profit margins. As a new company, it will be very difficult to compete with the large insurance companies in Kenya.

Check Out: How to Start a Blog in Kenya: The Complete Definitive Guide

Manufacturing And Production Business

 

The manufacturing and production business is one of the worst businesses to open in Kenya. This is because it is an extremely capital-intensive business. You might need up to half a million shillings or more just to get your business off the ground.

Even once you have the necessary funding, it is very difficult to make a profit from this business. This is because there is fierce competition among manufacturers.

Many countries have a comparative advantage in manufacturing certain products. If you want to start a manufacturing business, you need to find something that you can produce with low competition.

You will also need a way to stand out from your competitors. One way to do this is by offering a premium product. Another is to find a way to improve the product or service in a way that is difficult for others to copy.

Computer and Software Services

 

The computer and software services business is one of the worst businesses to start in Kenya. This is because there are very few services that people can’t get for themselves.

There is no demand for these services, and the market is highly saturated. The only way you can make a profit in this business is if you are the first provider. 

However, the risks are too high, and the returns are too low. Even if you were the first provider, you will face fierce competition, which will make it impossible to turn a profit. Unfortunately, there are no shortcuts to success. We recommend that you look for another business to start.

 

Conclusion On Worst Businesses to Start in Kenya

Starting a business is a great way to earn income while also being your boss. There are many easy businesses that you can start in Kenya, but there are also businesses that are not ideal for starting a business.

It’s wise to avoid these businesses when starting a company in Kenya. These are the types of businesses where you have a high risk of failure and won’t make much money if you do succeed.

Avoid them if you want to be successful. Keep these in mind as you research different business ideas and you can avoid these worst businesses to start in Kenya.