5 Growing Businesses You Can Start With Ksh20K

For many Kenyans, the idea of starting a business often stalls at one major hurdle - capital.

According to data from the Kenya National Bureau of Statistics (KNBS), only 7.4 million people run a business in a country of over 53 million citizens. At the same time, nearly 40% of Kenyans, more than 20 million people, live in low-income households.

Many people have ideas and motivation, but lack the funds to get started. However, they also reveal an opportunity: not all businesses require large amounts of capital. Some can be launched with modest funds, the right strategy, and consistency.

Here are five growing businesses you can start with about Ksh20,000.

Also Read: 10 Profitable Businesses to Start With Ksh50K in Kenya

1. Dropshipping Seller

Dropshipping allows you to sell products without holding inventory. Once a customer places an order, you source the item from a supplier who delivers it directly to the buyer. This model eliminates the need for storage, bulk purchases, or physical shop space.

The startup costs are relatively low. A website domain can cost between Ksh100 and Ksh1,500 per year, while hosting plans start from around Ksh300, depending on the provider. 

Alternatively, you can operate entirely through social media platforms. Marketing can begin with as little as Ksh100, supported by referrals and word of mouth.

This business is especially suitable for people with limited capital but strong online engagement skills.

2. Dropshipping Subletter

A dropshipping subletter doesn’t sell directly to customers. Instead, they offer storage or shelf space to other sellers who do not keep inventory locally. This works well when suppliers are based outside Kenya, but buyers want faster local delivery.

In this setup, your role is to bridge the gap between suppliers and customers by holding stock on behalf of sellers.

Renting a small shop in major towns typically costs between Ksh5,000 and Ksh60,000 per month, depending on the size and location.

This model adds value through convenience and speed, which are increasingly important in today’s market.

Also Read: 10 Businesses to Start With Zero Cash Capital in Kenya

3. Second-Hand Clothing Deliveries

The demand for affordable fashion remains strong in Kenya. Second-hand clothing businesses can tap into this demand without requiring a physical shop. 

Clothes can be sourced from markets such as Gikomba, after which sellers build customer communities on platforms like Facebook or WhatsApp.

Buyers place orders online, agree on styles or bundles, and select a delivery day. Your home can serve as a storage point, keeping overhead costs low. All you will need to do is to market the products on social media. Marketing can start from around Ksh100 for internet costs, while delivery costs average Ksh100 per order.

This model works best with consistency, trust-building, and good customer communication.

4. Eggs or Fruit Vendor

Selling eggs or fruits is a volume-based business where location and timing matter more than capital. You don’t necessarily need a stall. Operating in open-air markets helps reduce rent costs, allowing more of your capital to go directly into stock.

With the right location, steady foot traffic can translate into daily sales and consistent income. Because these items are fast-moving, sellers can reinvest their earnings quickly, making this a practical option for beginners.

Also Read: Unique Business Opportunities to Pursue in Nairobi 

5. Professional Cleaning Services

Professional cleaning services are increasingly in demand among homes and small to medium-sized offices. This business relies more on service delivery than expensive equipment.

Marketing efforts can start from Ksh100, while basic supplies such as mops, buckets, brushes, detergents, and disinfectants can be acquired for under Ksh20,000. Vacuum cleaners are optional at the start and range from around Ksh4,000, depending on size and type.

Transport and reliability are key factors, as clients often value timely service and consistency.

Final Thoughts

Starting a business in Kenya doesn’t always require large capital. For many people, the real challenge is identifying a model that fits their budget and committing to starting. 

Whether it’s selling online without stock, delivering second-hand clothes, or offering a service, these businesses show that Ksh20,000 can be enough to begin.

In a country where millions struggle to raise startup funds, small, practical ventures like these can offer a realistic path into entrepreneurship.