35 Most Profitable Small Business Ideas in Kenya (2026)

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What are the best small business ideas in Kenya? The most profitable include mitumba clothing, mobile money agency, food kiosk, poultry farming, online selling, and boda boda transport. Many can be started with as little as KES 5,000–50,000 and generate KES 20,000–150,000 per month depending on location, effort, and management.


Introduction

Kenya is one of Africa’s most entrepreneurial nations. From the streets of Nairobi’s Gikomba Market to the roadside stalls of Kisumu and the busy town centers of Nakuru and Mombasa, Kenyans are hustle-first people. Whether you are a recent graduate, a retrenched employee, a stay-at-home parent, or simply someone tired of waiting for a formal job, starting a small business in Kenya is one of the most realistic paths to financial freedom.

This guide covers the most profitable small business ideas in Kenya — with real startup costs in Kenyan Shillings, honest profit projections, and practical steps you can take today. We have gone beyond the generic lists. Every idea here has been analyzed in the context of Kenya’s market, consumer habits, infrastructure, and economic realities as of 2025–2026.

Whether you are looking for a side hustle in Kenya, a low-capital biashara ya mtaji mdogo, or a full-time startup business in Kenya, you will find something actionable here.


Why Small Businesses Are Thriving in Kenya Right Now

Kenya’s economy creates a unique environment for small businesses to grow. Here is why the timing is right:

  • Youth bulge: Over 75% of Kenya’s population is under 35. This creates both a large labor pool and a massive consumer market hungry for affordable goods and services.
  • Mobile money revolution: M-Pesa has made it easier than ever to receive payments, send money, and access credit — without a bank account.
  • Growing middle class: More Kenyans are spending on convenience foods, personal care, education, and digital services.
  • Urbanization: Towns like Eldoret, Kisii, Thika, and Kitengela are expanding fast, creating new customer bases.
  • Digital connectivity: Cheap internet and smartphones have opened up e-commerce, social media selling, and remote work opportunities even in peri-urban areas.
  • Government support: Hustler Fund, Youth Enterprise Fund, and county-based loans give entrepreneurs access to startup capital.

Despite economic pressures like inflation and high cost of living, necessity and opportunity continue to push more Kenyans into self-employment. The question is no longer whether to start a business, but which one makes sense for you.


Top Small Business Ideas in Kenya: Overview Table

Business IdeaStartup Capital (KES)Monthly Profit Potential (KES)Difficulty
Mitumba (Second-hand Clothes)10,000–50,00020,000–80,000Low
Mobile Money (M-Pesa Agent)50,000–100,00015,000–50,000Low
Food Kiosk / Mama Mboga5,000–30,00015,000–60,000Low
Poultry Farming (Kienyeji)20,000–80,00020,000–100,000Medium
Online Selling (Jumia/Instagram)5,000–20,00015,000–70,000Medium
Boda Boda Business80,000–150,00030,000–80,000Medium
Car Wash30,000–100,00030,000–100,000Medium
Salon / Barbershop30,000–100,00025,000–90,000Medium
Cyber Café / Printing50,000–150,00020,000–60,000Medium
Cleaning Services10,000–40,00025,000–80,000Low
Daycare / Baby Care30,000–80,00020,000–70,000Medium
Vegetable / Grocery Supply10,000–50,00020,000–70,000Low
Mkokoteni / Handcart Hire15,000–30,00020,000–50,000Low

35 Profitable Small Business Ideas in Kenya (Detailed Breakdown)

1. Mitumba Business (Second-Hand Clothing)

Mitumba is arguably Kenya’s most accessible biashara ya mtaji mdogo. Kenyans across all income levels buy second-hand clothes. The market is massive, from Gikomba in Nairobi to Toi Market, Kongowea in Mombasa, and similar hubs in every major town.

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How it works: You buy bales of second-hand clothing from importers (mostly in Gikomba or Industrial Area), sort them, and resell either from a stall, roadside, or online.

Startup Costs:

  • Small bale (mixed clothing): KES 2,000–8,000
  • Medium bale: KES 10,000–25,000
  • Display rack or table: KES 2,000–5,000
  • Stall rent: KES 2,000–8,000/month

Profit Potential: A KES 10,000 bale of mixed clothes can sell for KES 25,000–40,000 when sorted. Monthly profit ranges from KES 20,000 to KES 80,000 depending on volume and location.

Pro Tip: Specialize. Sell only children’s clothes, or only men’s suits, or only sportswear. Specialization builds loyalty and lets you charge better prices.


2. Mobile Money Agent (M-Pesa, Airtel Money)

With over 30 million M-Pesa users in Kenya, mobile money agents remain one of the most profitable startup businesses in Kenya with steady, predictable income.

Startup Costs:

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  • Safaricom float (working capital): KES 50,000–100,000
  • Till number registration: Free (through Safaricom)
  • Small shop or counter space: KES 3,000–10,000/month

Revenue Model: You earn commissions on every deposit and withdrawal. A busy agent in a market area can process KES 100,000–500,000 daily in transactions.

Monthly Profit: KES 15,000–50,000 net, depending on transaction volume.

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Best Locations: Near markets, bus stops, residential estates with no nearby agent, schools, and hospitals.


3. Food Kiosk / Mama Mboga / Roadside Eatery

Food is recession-proof. People must eat regardless of economic conditions. A simple food kiosk selling chapati, githeri, mahindi choma, or a mama mboga stall are among the most reliable small business ideas in Kenya.

Startup Costs:

  • Charcoal jiko and pots: KES 3,000–8,000
  • Initial food stock: KES 5,000–15,000
  • Simple structure or stall: KES 5,000–20,000

Monthly Profit: A well-located roadside food stall can earn KES 15,000–60,000 per month net. A small restaurant serving lunch in a business area can earn more.

Pro Tip: Add delivery via WhatsApp orders for office workers nearby. Many urban workers prefer ordering food to leaving the office during lunch.


4. Poultry Farming (Kienyeji Chicken)

Kienyeji (indigenous) chicken farming is a profitable biashara that works even in semi-urban settings. Kenya has a massive deficit in indigenous chicken supply, with demand far outstripping local production.

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Startup Costs:

  • 50 day-old kienyeji chicks: KES 5,000–8,000
  • Feeds for 6 months: KES 10,000–15,000
  • Simple chicken house (DIY): KES 5,000–15,000
  • Vaccines and medication: KES 2,000–5,000

Profit Potential: A mature kienyeji chicken sells for KES 700–1,500 depending on size and market. 50 birds after mortality can net KES 25,000–50,000 per cycle (5–6 months).

Scale Up: Many successful farmers in Kiambu, Murang’a, and Machakos counties started with 50 birds and now run flocks of 500–2,000, supplying hotels and supermarkets.


5. Online Selling (Social Commerce)

Kenya’s social media penetration makes online selling one of the fastest-growing side hustle Kenya opportunities. Instagram, Facebook, TikTok, and WhatsApp are all active selling platforms.

What to Sell: Fashion items, electronics accessories, skincare products, shoes, household goods, food products, handmade crafts.

Startup Costs:

  • Smartphone with good camera: Already owned (most cases)
  • Initial stock: KES 5,000–20,000
  • Delivery costs: Paid by buyer usually

Monthly Profit: KES 15,000–70,000 depending on niche and volume. Top social sellers in Kenya report KES 100,000+ per month.

Pro Tip: Record short videos showing the product in use. TikTok and Instagram Reels drive enormous organic reach for free.


6. Boda Boda Business

Boda boda motorcycles are the backbone of last-mile transport in Kenya. Owning one or two boda bodas and hiring riders on commission is a highly reliable startup business in Kenya.

Startup Costs:

  • New motorcycle (e.g., TVS, Boxer): KES 90,000–130,000
  • Second-hand motorcycle: KES 50,000–80,000
  • License and registration: KES 5,000–10,000

Revenue Model: A rider pays you KES 400–700 per day as the owner. If you have two bikes, that’s KES 800–1,400/day passive income.

Monthly Profit: KES 20,000–50,000 per bike (net of fuel contribution and maintenance reserves).

Challenge: Accidents and mechanical breakdowns. Always insure your bike and set aside a maintenance fund.


7. Car Wash Business

Urban car ownership is rising fast in Kenya. Areas like Ruaka, Rongai, Kitengela, Syokimau, and Langata have thousands of car owners who need affordable, convenient washing.

Startup Costs:

  • Water tank (2,000L): KES 10,000–15,000
  • High-pressure washer: KES 15,000–40,000
  • Hoses, brushes, soap: KES 3,000–5,000
  • Land/space rental: KES 5,000–15,000/month

Pricing: Basic wash KES 300–500, full detail KES 1,500–3,000.

Monthly Profit: Washing 15 cars/day at KES 400 average = KES 6,000/day = KES 150,000/month gross. Net profit after costs: KES 40,000–100,000.

Pro Tip: Add a waiting area with free Wi-Fi and sell tea/coffee. It encourages customers to wait (and spend more).


8. Salon and Barbershop

Personal grooming is a daily necessity in Kenya. A well-located salon or barbershop is one of the most consistent profitable biashara opportunities available.

Startup Costs (Barbershop):

  • Barber chairs (2): KES 15,000–25,000
  • Clippers, mirrors, equipment: KES 10,000–20,000
  • Monthly rent: KES 5,000–15,000

Startup Costs (Ladies’ Salon):

  • Dryer, chairs, tools: KES 30,000–60,000
  • Products (relaxer, color, etc.): KES 10,000–20,000

Monthly Profit: A barbershop serving 15–25 clients/day at KES 150–200 can earn KES 20,000–50,000 net. A ladies’ salon with braiding, relaxing, and extensions: KES 40,000–90,000/month.


9. Cyber Café and Printing Services

Despite smartphone penetration, there is still strong demand for printing, photocopying, ID photos, form filling, CV writing, and business card printing — especially near schools, hospitals, law courts, and government offices.

Startup Costs:

  • 2–3 computers: KES 30,000–60,000
  • Printer (laser/colour): KES 15,000–40,000
  • Internet connection: KES 3,000–8,000/month
  • Monthly rent: KES 5,000–15,000

Monthly Profit: KES 20,000–60,000 depending on location and additional services offered.

Value Add: Offer Huduma Centre form assistance, university portal help, and HELB loan applications for a small fee.


10. Cleaning and Laundry Services

Urban Kenya is busy. Many households and offices in Nairobi, Mombasa, Kisumu, and Nakuru outsource cleaning and laundry. This is one of the most underrated side hustle Kenya opportunities.

Startup Costs:

  • Cleaning supplies and equipment: KES 5,000–15,000
  • Marketing (flyers, WhatsApp): KES 1,000–3,000
  • Transport (initially use boda boda): KES 0–5,000

Monthly Profit: Charge KES 2,000–8,000 per house clean. With 10 regular clients per month: KES 20,000–80,000. Laundry services can add KES 10,000–30,000 more.

Pro Tip: Target apartments and gated communities in areas like Ngong Road, Kilimani, Lavington, and Nyali.


11. Daycare and Childcare Services

Kenya’s working parents, especially in cities, desperately need quality, affordable daycare. This is a high-demand, low-competition business in most estates outside Nairobi’s CBD.

Startup Costs:

  • Room setup, toys, and mats: KES 20,000–50,000
  • Registration with Ministry of Education: KES 5,000–15,000
  • Insurance: KES 5,000–10,000/year

Monthly Profit: Charging KES 5,000–10,000 per child per month, with 10 children = KES 50,000–100,000 gross. Net after costs: KES 25,000–60,000.


12. Vegetable and Grocery Supply Business

Buying vegetables directly from farmers in Limuru, Kinangop, or Mwea and supplying to market traders, hotels, and restaurants is a genuinely profitable biashara ya mtaji mdogo with fast turnover.

Startup Costs:

  • Initial stock purchase: KES 5,000–20,000
  • Transport (shared or own): KES 2,000–10,000
  • Packaging and delivery costs: KES 1,000–3,000

Monthly Profit: Margins of 30–60% on vegetables mean a trader moving KES 100,000 in stock monthly can net KES 25,000–50,000.


13. Cake Baking and Catering

Home-based baking has exploded in Kenya, particularly for celebration cakes. Instagram and WhatsApp have eliminated the need for a physical shop.

Startup Costs:

  • Oven (electric or gas): KES 10,000–30,000
  • Baking tools and molds: KES 5,000–15,000
  • Initial ingredients: KES 3,000–8,000

Monthly Profit: A basic 2kg cake sells for KES 1,500–3,000. Baking 20–30 cakes per month = KES 30,000–90,000 gross. Net: KES 20,000–60,000.


14. Freelancing (Writing, Design, Virtual Assistance)

If you have a skill — writing, graphic design, web development, social media management, or data entry — you can sell it online through Upwork, Fiverr, or locally through LinkedIn and Facebook groups.

Startup Costs: A laptop and internet connection. Total: KES 30,000–70,000 if you don’t already have them.

Monthly Earnings: Kenyan freelancers on Upwork earn USD 300–2,000/month depending on skill and client load (KES 40,000–260,000 at current rates).


15. Water Vending Business

In semi-arid areas and underserved estates, water vending is a goldmine. You can start with a water storage tank and sell per jerican or connect to a borehole and sell by the litre.

Startup Costs:

  • Borehole or water connection: KES 50,000–200,000
  • Tank and kiosk structure: KES 20,000–50,000

Monthly Profit: Selling water at KES 3–10 per litre in areas with limited piped water can generate KES 30,000–150,000/month.


16. Selling Agricultural Inputs

Rural Kenya’s farmers need seeds, fertilizer, pesticides, and farm tools. A small agro-vet or agro-inputs shop in a market town like Eldoret, Kitale, Embu, or Kerugoya can be extremely lucrative.

Startup Costs:

  • Initial stock: KES 50,000–200,000
  • Shop rental: KES 5,000–20,000/month
  • Licenses (Pest Control Board, etc.): KES 5,000–15,000

Monthly Profit: KES 30,000–100,000 depending on sales volume and location.


17. Mkokoteni (Handcart) Hire

In busy market areas like Gikomba, Korogocho, Wakulima Market, and Kongowea, handcart hire is a simple, low-tech business that earns consistent daily income.

Startup Costs:

  • Handcart purchase: KES 8,000–15,000

Monthly Profit: Renting out at KES 200–400/day = KES 5,000–10,000/cart/month. Own 3 handcarts and earn KES 15,000–30,000 passively.


18. Egg Supply Business

Eggs are a daily staple in Kenya. Buying in bulk from farms in Machakos, Kiambu, or Nakuru and supplying to estates, restaurants, and kiosks is a fast-moving, reliable business.

Startup Costs: KES 10,000–30,000 for initial stock and delivery costs.

Monthly Profit: KES 15,000–50,000 depending on volume.


19. Shoe Repair (Fundi wa Viatu)

This underrated trade remains in high demand. A skilled cobbler in a busy area can earn KES 15,000–40,000 per month with virtually no formal education required.

Startup Costs: KES 5,000–15,000 for tools and materials.


20. Airbnb / Room Rental

If you own or can legally sublet a room or apartment, listing it on Airbnb or Booking.com targets Kenya’s growing domestic tourism and business travel market.

Monthly Profit: KES 20,000–150,000 per unit depending on location, amenities, and occupancy rate.


Cost Breakdown: Starting a Small Business in Kenya

Expense CategoryLow Budget (KES)Medium Budget (KES)High Budget (KES)
Stock / Inventory5,00030,000100,000+
Shop Rent (monthly)3,0008,00025,000
Equipment / Tools2,00015,00060,000
Licenses / Permits1,5005,00020,000
Marketing5003,00015,000
Total Estimate~12,000~61,000~220,000

Licenses and Permits Needed in Kenya

Most small businesses in Kenya require the following before operating legally:

  1. Single Business Permit (SBP) — Issued by your county government. Cost: KES 3,000–10,000/year depending on county and business type.
  2. Kenya Revenue Authority (KRA) PIN — Free. Required for tax compliance. Register at kra.go.ke.
  3. NSSF and NHIF Registration — Required once you hire employees.
  4. Food Hygiene Certificate — Required for food businesses. Issued by county health departments.
  5. Fire Safety Certificate — Required for shops and restaurants.
  6. Trade-specific licenses — Agro-vets need Pest Control Board license; pharmacies need PPB license; daycares need MoE registration.

Pro Tip: Always comply. Unregistered businesses risk fines, closure, and damage to customer trust.


Best Locations to Start a Small Business in Kenya

The right location can make or break your business. Here is a breakdown by business type:

Business TypeBest Locations
MitumbaNear markets: Gikomba, Toi, Kongowea, Kamukunji
Food KioskNear schools, factories, busy roads, offices
Mobile MoneyResidential estates, markets, near banks/ATMs
Salon / BarbershopEstates, near universities, shopping centers
Poultry FarmingPeri-urban: Kiambu, Machakos, Murang’a, Uasin Gishu
Car WashBusy residential suburbs: Rongai, Ngong, Kitengela, Nyali
Online SellingAnywhere with internet access
Cyber / PrintingNear schools, courts, hospitals, government offices

Read also: Profitable Business Ideas in Kenya 2026: High-Return Biashara You Can Start Today


Step-by-Step Guide to Starting a Small Business in Kenya

Step 1: Identify Your Business Idea

Pick an idea that matches three things: your skills or interests, your available capital, and market demand in your area. Do not copy blindly. Survey your local area first.

Step 2: Research the Market

Visit similar businesses in your area. Talk to potential customers. Check prices. Understand what is selling and what is not.

Step 3: Write a Simple Business Plan

You do not need a 50-page document. A one-page plan covering what you will sell, who your customers are, how much you need to start, and how you will make money is enough for most small businesses.

Step 4: Register Your Business

  • Register a business name with the Business Registration Service (BRS) online at ecitizen.go.ke. Cost: KES 950.
  • Get a KRA PIN at itax.kra.go.ke.
  • Apply for your Single Business Permit at your county offices.

Step 5: Source Your Products or Services

Find reliable suppliers. For physical products, visit Gikomba, Westlands wholesale shops, or Mombasa’s Kongowea. For farming inputs, contact Kenya Seed Company or local agro-dealers.

Step 6: Set Up Your Business Space

Whether it is a stall, a room, an online page, or a farm, set it up properly. Cleanliness, signage, and organization matter more than people think.

Step 7: Open a Business Account

Use an M-Pesa Till or Paybill number for business transactions. This separates business and personal money — a critical discipline.

Step 8: Market Your Business

  • WhatsApp status and business groups
  • Facebook Marketplace and local groups
  • Printed flyers in the neighborhood
  • Word of mouth: treat every customer like gold

Step 9: Track Your Income and Expenses

Use a simple notebook or free apps like Wave or Zoho Books. Knowing your numbers prevents you from spending your capital unknowingly.

Step 10: Reinvest and Grow

In the first year, resist the urge to take all profit out. Reinvest at least 50% back into stock, marketing, or equipment to grow the business.


Common Challenges and Solutions

ChallengeSolution
Lack of startup capitalStart small; use Hustler Fund, Chamas, or SACCO savings
Slow sales in first monthsFocus on marketing aggressively; give trial offers
CompetitionDifferentiate with better service, packaging, or specialization
Cash flow problemsNever use all your stock money; always maintain a float
Customer trust (new business)Ask satisfied customers for referrals; display licenses
Theft or lossesInstall CCTV or work with trusted employees; insure your business
No business knowledgeJoin business groups; attend MSEA or county training programs

Profit Potential: What You Can Realistically Earn

Honest income expectations are important. Here are conservative-to-optimistic monthly profit estimates for common businesses:

BusinessConservative (KES)Moderate (KES)Optimistic (KES)
Mitumba15,00040,00080,000
M-Pesa Agent10,00025,00050,000
Food Kiosk10,00030,00060,000
Poultry (per cycle)15,00035,00080,000
Online Selling8,00030,000100,000+
Car Wash20,00050,000100,000
Salon15,00040,00090,000
Freelancing20,00060,000200,000+

Important: These figures assume consistent effort, good location, and basic business discipline. Results vary. Do not expect overnight wealth.


Tips to Succeed Faster

  • Start before you are ready. Waiting for perfect conditions means never starting. Start small and improve as you go.
  • Solve a real problem. The most successful businesses in Kenya address pain points: hunger, transport, beauty, convenience, and communication.
  • Learn from your customers. Ask them what they like and what they wish you did differently. They will tell you how to grow.
  • Use social media seriously. A well-managed WhatsApp Business account and Facebook page are free advertising with reach.
  • Join a SACCO or Chama. Group savings and lending help you scale faster than solo saving.
  • Keep your business clean and organized. First impressions matter in every industry.
  • Do not mix business and personal finances. This is the number one mistake that kills small businesses.
  • Invest in basic skills. A short course in bookkeeping, marketing, or your trade area pays for itself quickly.

Mistakes to Avoid

  1. Starting without market research. Assuming people will buy without testing demand is expensive.
  2. Overspending on setup. You do not need a fancy shop to start. Start lean.
  3. Giving too much credit. Selling on credit to friends and neighbors without follow-up kills cash flow.
  4. Copying without adapting. What works in Westlands may not work in Kisumu’s Kondele. Know your local market.
  5. Neglecting licenses. County askaris can shut you down and confiscate goods. Get your permit.
  6. Underpricing. Many beginners price too low to attract customers and end up making no profit. Price to cover costs and earn a margin.
  7. Ignoring digital tools. Not using M-Pesa, WhatsApp, or simple accounting apps puts you behind competition.
  8. Giving up too early. Most businesses take 3–6 months to stabilize. Patience during the early period is essential.

Frequently Asked Questions

What is the best small business to start in Kenya with low capital?

The best low-capital small business ideas in Kenya include mitumba selling (from KES 5,000), mama mboga vegetable stall (from KES 5,000), online selling via Instagram or Facebook (from KES 3,000), egg supply (from KES 10,000), and cleaning services (from KES 5,000). These businesses have low barriers to entry and fast inventory turnover.

Which business is most profitable in Kenya?

Profitability depends on location and effort, but consistently profitable businesses in Kenya include mobile money agency, poultry farming, car wash, salon/barbershop, and food businesses. Freelancing (especially online work) can earn even more with the right skills.

How do I start a business in Kenya with KES 10,000?

With KES 10,000 you can start mitumba selling, egg reselling, vegetable supply, a home-based baking business, or offer a service such as cleaning or social media management. Focus on businesses with fast stock turnover so you can reinvest quickly.

What business can I do as a side hustle in Kenya while employed?

The best side hustles in Kenya for employed people include online selling, freelancing, egg supply, rental rooms (Airbnb), baking, or running a mobile money till operated by someone else on commission. These businesses can run with minimal daily involvement.

How do I register a small business in Kenya?

Register a business name on the eCitizen platform (ecitizen.go.ke) for KES 950. Get a KRA PIN at itax.kra.go.ke for free. Apply for a Single Business Permit at your county government offices. Additional licenses depend on your specific trade.

Is poultry farming profitable in Kenya?

Yes. Kienyeji chicken farming is particularly profitable given the consistent demand and premium prices they fetch. Starting with 50 birds costs roughly KES 25,000–35,000 and can net KES 25,000–60,000 per cycle (5–6 months). Scaling to 500+ birds significantly increases earnings.

What online businesses can I start in Kenya?

Popular online business ideas in Kenya include social media selling (clothes, electronics, cosmetics), freelance writing and design, virtual assistance, YouTube content creation, affiliate marketing (promoting Kenyan brands), and dropshipping through Jumia or personal Instagram shops.

What is biashara ya mtaji mdogo in Kenya?

Biashara ya mtaji mdogo means a small-capital business in Swahili. In Kenya, this refers to any business that can be started with KES 5,000–50,000. Examples include mitumba, vegetable selling, egg supply, mobile phone accessories, and home-based baking.


Final Verdict: Which Small Business Should You Start in Kenya?

There is no single “best” small business idea in Kenya. The right choice depends on your capital, your location, your skills, and your appetite for work. Here is a simple guide:

  • If you have KES 5,000–15,000: Start with mitumba, vegetable supply, eggs, or cleaning services.
  • If you have KES 20,000–50,000: Consider mobile money, poultry farming, online selling, or baking.
  • If you have KES 50,000–150,000: A car wash, salon, cyber café, or boda boda business makes sense.
  • If you have a skill (writing, design, IT): Start freelancing immediately — zero inventory, high margins.

Kenya is full of opportunity. The biggest obstacle is not capital or competition. It is starting. Pick one idea, research it properly, start small, and commit. Many of Kenya’s successful entrepreneurs today started with less than KES 10,000 and a mobile phone.

Your biashara wa leo is your financial foundation ya kesho.

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