Quick Answer Box
Can you start a real business with 20k in Kenya? Yes. With KES 20,000, you can start businesses like mitumba shoes, smokies and eggs, phone accessories, vegetables supply, or water delivery. Most make KES 500–2,000 daily profit after recovering capital in 2–4 weeks.
Introduction
If you have KES 20,000 and you’re wondering what business to start with 20k in Kenya, this guide gives you real options that people are running today—not theories.
Many Kenyans sit on this amount thinking it’s too small. But 20k can start a business that pays you daily, replaces your salary, or becomes a side income while you keep your job.
The problem is choosing the wrong business. People lose this money in three weeks because they copied someone without understanding costs, location, or daily operations.
This article shows you 12 proven businesses you can start with 20k capital in Kenya, the exact breakdown of costs, realistic profits, and the mistakes that kill these businesses fast.
Why KES 20,000 Is Enough to Start a Business in Kenya
You don’t need millions. You need the right business model.
A 20k budget works when:
- The business has daily cash flow (not monthly)
- Stock rotates fast (sells within days, not weeks)
- You can operate from home or low-cost locations
- Profit margins are clear and tested
Businesses that don’t work with 20k: boutiques in malls, hardware stores, electronics shops, or anything requiring rent deposits and expensive stock.
12 Best Low Budget Businesses in Kenya You Can Start with 20K
1. Mitumba Shoes Business
What it is: Buying bales of second-hand shoes, sorting them, and selling retail at markets or roadsides.
Why it works: Shoes are always needed. A good pair costs KES 300–800 retail but you buy at KES 50–150 per pair from bales.
Capital breakdown:
- Half bale (50–70 pairs): KES 12,000–15,000
- Transport: KES 1,000
- Display mat/table: KES 2,000
- Remaining stock: KES 2,000
Daily profits: KES 800–1,500 (selling 8–12 pairs daily)
Break-even time: 3–4 weeks
Best locations: Gikomba, Toi Market (Nairobi), estates, bus stops
Challenges: Sorting bales is hard work. Some bales have damaged stock. Competition is high.
2. Smokies and Eggs (Mayai Pasua)
What it is: Selling boiled eggs with smokies at busy spots—morning and evening rush hours.
Why it works: Fast-moving, everyone knows the product, repeat customers daily.
Capital breakdown:
- 10 trays of eggs (300 eggs): KES 13,500
- 10kg smokies: KES 4,000
- Charcoal jiko + sufuria: KES 1,500
- Salt, napkins, sauce: KES 1,000
Daily profits: KES 1,000–1,800 (selling 100–150 eggs daily)
Break-even time: 2–3 weeks
Best locations: Bus stages, construction sites, CBD alleys, college gates
Challenges: Eggs can break. You must wake up early (5 AM). Weather affects sales.
3. Phone Accessories at Matatu Stages
What it is: Selling phone cases, chargers, earphones, pop sockets, screen guards at bus stops.
Why it works: Phones break daily. Impulse buying is high at matatu stages.
Capital breakdown:
- 50 phone cases (assorted): KES 7,500
- 30 earphones: KES 4,500
- 20 chargers: KES 4,000
- Display tray/board: KES 2,000
- Packaging bags: KES 500
- Float: KES 1,500
Daily profits: KES 600–1,200
Break-even time: 4–5 weeks
Best locations: Railways, Kencom, Ngara, Umoja, Donholm
Challenges: Kanjo raids in some towns. Slow days when it rains. Thieves at night.
4. Vegetables Supply to Kinyozis and Salons
What it is: Buying vegetables wholesale at 5 AM from markets, repackaging, and delivering to barber shops and salons in estates.
Why it works: Salons and barbershops need fresh vegetables daily but hate going to the market.
Capital breakdown:
- First stock (tomatoes, onions, greens): KES 12,000
- Weighing scale: KES 2,500
- Packaging papers/bags: KES 1,000
- Boda transport: KES 2,000
- Float: KES 2,500
Daily profits: KES 800–1,500 (servicing 10–15 clients daily)
Break-even time: 3 weeks
Best locations: Estates like Kayole, Umoja, Pipeline, Rongai
Challenges: Vegetables spoil if not sold. Some customers delay payments. You must wake up at 4 AM.
5. Water Delivery Business (20L Jerricans)
What it is: Buying water from boreholes or county taps, delivering to homes using handcart or mkokoteni.
Why it works: Water shortage is real in estates. People pay for convenience.
Capital breakdown:
- 10 jerricans (20L): KES 10,000
- Mkokoteni (second-hand): KES 6,000
- First water stock: KES 2,000
- Marketing (flyers, calls): KES 1,000
- Float: KES 1,000
Daily profits: KES 1,000–2,000 (20–30 deliveries daily at KES 50–70 per jerrican)
Break-even time: 2–3 weeks
Best locations: Zimmerman, Githurai, Rongai, Kitengela
Challenges: Very physical work. Mkokoteni can break. Some customers don’t pay immediately.
6. Chapati Business (Evening Sales)
What it is: Making chapatis at home, selling evenings at busy spots or delivering to offices.
Why it works: Chapatis sell fast. People eat them as supper or lunch.
Capital breakdown:
- Flour (10kg daily stock for 1 week): KES 7,000
- Cooking fat, oil: KES 3,000
- Sufuria, rolling pin, jiko: KES 5,000
- Packaging (newspapers, bags): KES 2,000
- Charcoal: KES 2,000
- Float: KES 1,000
Daily profits: KES 800–1,500 (selling 50–80 chapatis at KES 15–20 each)
Break-even time: 3–4 weeks
Best locations: Estates, stage, construction sites
Challenges: Waking up early to prepare. Smoke in the house. Competition from roadside vendors.
7. Movie and Series Download Shop
What it is: Downloading movies, series, music to customers’ flash disks or phones at KES 50–100.
Why it works: Not everyone has internet bundles. Students love this.
Capital breakdown:
- Laptop (second-hand): KES 15,000
- External hard drive (2TB): KES 8,000 (you can start with 1TB at KES 5,000)
- Internet bundles (monthly): KES 1,500
- Printing services setup: KES 2,000 (optional)
- Table and seat (if operating outside): KES 2,000
- Marketing: KES 500
Note: This setup exceeds 20k slightly, so if using 20k only, skip the printer and use a cheaper laptop or shared cybercafe space.
Daily profits: KES 500–1,000 (10–15 customers daily)
Break-even time: 4–6 weeks
Best locations: Near colleges, estates with students
Challenges: Laptop can break. Slow during holidays. Viruses.
8. Fruits Cart Business
What it is: Buying fruits wholesale, displaying on a cart, selling retail at busy streets.
Capital breakdown:
- Fruits stock (bananas, oranges, apples, watermelon): KES 10,000
- Cart (wooden or metal): KES 5,000
- Knife, weighing scale, bags: KES 2,000
- Umbrella or shade: KES 2,000
- Float: KES 1,000
Daily profits: KES 700–1,200
Break-even time: 3–4 weeks
Best locations: Town CBD, outside offices, estates
Challenges: Fruits spoil. Kanjo harassment. Rain affects sales.
9. Smokies and Sausage Deep Frying
What it is: Deep-frying smokies and sausages, selling with kachumbari.
Why it works: Faster than boiling. Crispy smokies attract more customers.
Capital breakdown:
- 10kg smokies/sausages: KES 8,000
- Gas cylinder (6kg) + burner: KES 6,000
- Cooking oil: KES 2,500
- Kachumbari ingredients: KES 1,000
- Plates, napkins: KES 1,500
- Float: KES 1,000
Daily profits: KES 1,000–1,800
Break-even time: 2–3 weeks
Best locations: Same as boiled eggs—stages, construction sites
Challenges: Gas refills are expensive. Oil must be changed regularly.
10. Mama Fua (Laundry Services)
What it is: Washing clothes for bachelors, students, busy workers at their homes or yours.
Why it works: Many people hate washing clothes. Busy workers pay for convenience.
Capital breakdown:
- Detergents, softeners (stock for 2 weeks): KES 5,000
- Buckets, basins (5 pieces): KES 3,000
- Drying lines, pegs: KES 1,500
- Iron box + ironing board: KES 4,500
- Marketing (flyers, posters): KES 2,000
- Transport: KES 2,000
- Float: KES 2,000
Daily profits: KES 600–1,200 (washing 3–5 loads daily at KES 300–500 per load)
Break-even time: 4–5 weeks
Best locations: Estates with many bachelors—Kasarani, Rongai, South B
Challenges: Very physical. Some customers delay payments. Water bills increase.
11. Tissue and Sanitizer Hawking
What it is: Walking in town or matatus selling tissues, sanitizers, masks.
Why it works: Impulse buying. Low capital. High foot traffic.
Capital breakdown:
- 100 tissue packs: KES 5,000
- 50 sanitizer bottles: KES 7,500
- Carrier bag: KES 500
- Transport: KES 1,000
- Float: KES 6,000
Daily profits: KES 500–1,000 (good days), KES 200–400 (slow days)
Break-even time: 3–4 weeks
Best locations: CBD Nairobi, Mombasa, Kisumu, inside matatus
Challenges: Walking all day. Kanjo arrests. Rainy days are dead.
12. Mandazi Business (Morning and Evening)
What it is: Making mandazi at home, selling mornings and evenings.
Why it works: Kenyans love mandazi with tea. Fast-moving product.
Capital breakdown:
- Flour (10kg for 1 week): KES 3,500
- Sugar, baking powder, oil: KES 3,500
- Sufuria, rolling cutter, jiko: KES 4,500
- Packaging (papers, bags): KES 1,500
- Charcoal: KES 2,000
- Marketing/transport: KES 3,000
- Float: KES 2,000
Daily profits: KES 600–1,200 (selling 80–120 pieces at KES 10 each)
Break-even time: 3–4 weeks
Best locations: Stages, schools, offices
Challenges: Waking up early. Oil costs. Competition.
How to Choose the Right Business for You
Ask yourself:
- Do you want daily cash or monthly? (Smokies, eggs = daily. Clothes = slower)
- Can you wake up early? (Vegetables, mandazi need 4–5 AM starts)
- Do you have space at home? (Chapati, mandazi, laundry work better with home base)
- Can you walk all day? (Hawking tissues, water delivery is physical)
- Do you have a specific location advantage? (Near college = downloads. Near site = eggs)
Start with what matches your lifestyle.
Common Mistakes That Kill Small Biashara Ideas with 20K
1. Starting in the Wrong Location
Selling smokies outside a residential estate in the afternoon won’t work. Know your customer’s schedule.
2. Buying Too Much Stock at Once
Start small. Test for 1 week. See what sells. Then restock.
3. Eating Business Money
The KES 1,500 profit is not pocket money. It’s your re-stock capital. Don’t touch it.
4. Ignoring Daily Expenses
Charcoal, transport, packaging—these eat your profit daily. Calculate them.
5. Copying Without Research
Your friend makes KES 2,000 daily selling shoes. That doesn’t mean you will. Location matters.
6. Not Keeping Records
Know how much you spend daily. How much you make. Without records, you’ll lose money without knowing.
Tips to Make More Money and Grow Faster
- Add a second product: Selling eggs? Add smokies. Selling chapati? Add tea.
- Offer delivery: Charge KES 50–100 extra. Customers pay for convenience.
- Get repeat customers: Give loyalty discounts. Remember their names.
- Work peak hours only: If you’re doing side business, work 6–9 AM and 5–8 PM. You don’t need to be there all day.
- Partner with someone: Can’t wake up early? Partner with someone who can. Split profits 60/40.
Do You Need a License for These Businesses?
Most small biashara with 20k capital don’t need licenses immediately, but here’s the reality:
- Single Business Permit: Required by county. Costs KES 5,000–10,000 annually. Most small vendors don’t have it but risk kanjo harassment.
- Food businesses: Technically need health certificates (KES 2,000–5,000) but most roadside vendors operate without.
Real advice: Start first. Make money. Then register when you’re stable and want to avoid kanjo issues.
Don’t let licenses stop you from starting.
How Long Before You Start Making Profit?
Break-even times:
- Week 1–2: You’re still testing. Profits are small or zero.
- Week 3–4: You recover capital and start seeing real profit.
- Month 2–3: Business stabilizes. You know your daily average.
If you’re not breaking even by week 5, something is wrong. Change location, product, or pricing.
FAQs
How much do I need to start a business in Kenya?
You can start with as low as KES 5,000 for hawking or tissue selling, but KES 20,000 gives you better options like smokies, eggs, mitumba shoes, or water delivery with realistic daily profits of KES 500–2,000.
Which is the most profitable business with 20k capital?
Smokies and eggs, water delivery, and vegetable supply to salons give the fastest daily cash flow (KES 1,000–2,000 daily). Mitumba shoes have higher profits but slower stock rotation.
Can I start with no experience?
Yes. Businesses like water delivery, tissue hawking, and phone accessories need no special skills. Avoid chapati or mandazi if you can’t cook. Start with what you can do, learn as you go.
What are the risks of starting small businesses in Kenya?
Main risks: theft, county askaris (kanjo), slow sales days, spoilage (vegetables, fruits), and eating your own capital. The biggest killer is wrong location and not tracking expenses.
Is 20k enough to start a business in Kenya?
Yes, if you choose businesses with daily cash flow, low rent, and fast stock rotation. Don’t try boutiques, electronics, or hardware. Stick to consumables—food, water, accessories.
How long before I start making money?
Most businesses with 20k capital break even in 3–4 weeks. After that, you start seeing daily profits. Month 2 is when you feel stable. If nothing is working by week 6, change your strategy.
What business can I start with 20k in Kenya from home?
Chapati, mandazi, laundry services (mama fua), baking, and movie downloads can all run from home. These save you rent and transport costs.
Which business has daily income in Kenya?
Smokies and eggs, water delivery, vegetables, chapati, fruits cart, and mandazi all give you cash every evening. No waiting for end of month.
Conclusion
The best business to start with 20k in Kenya is one that gives you daily cash, operates in the right location, and matches your lifestyle.
This business model works for:
- Unemployed youth who need daily income
- Employees looking for side income (evenings/weekends)
- Stay-at-home parents who can cook or wash clothes
Avoid this if:
- You want fast millions (these are slow-growth businesses)
- You can’t handle physical work
- You’re not patient with slow first weeks
Next steps:
- Pick one business from this list
- Visit the location and observe for 2 days
- Start with half your capital (KES 10k) to test
- Track daily sales and expenses
- Scale when you see consistent profit
Don’t overthink it. Start small, test the market, and adjust as you go. KES 20,000 is enough if you choose wisely.
