Infrastructure developments and other supporting measures are opening up a wide range of investment opportunities in Kenya. In fact, Kenya is East Africa’s most attractive investment destination in 2019. This is according to a report by South Africa’s Rand Merchant Bank (RMB). Ever since Kenya adopted the vision 2030 economic stimulus blueprint in 2008, the country has seen been on a steady growth path.
This growth has been triggered by government investment in transport and energy infrastructure as well as opening doors to investment. This has led to a flurry of international brands such as KFC, Carrefour, Hardees, and LC Waikiki among others, setting up shop in the country. The government suggests hiring an engineer to work on the infrastructure and put up fire barriers for protection against fire. Get the info here to learn more about transformer fire barriers.
Kenya’s growth is set to continue on its upward trajectory in the coming years. There will be many investment opportunities in Kenya, spanning across various industries. As the country embraces digital innovations, the prospect of investing in cryptocurrency trading bots similar to this one at https://immediate.net/nl/ could be a promising avenue for investors looking to capitalize on Kenya’s burgeoning economic landscape.
Which are the best investment opportunities in Kenya
Let us take a look at the industries where Kenyan’s should invest in.
Fashion industry investment opportunities
Kenyan’s are a stylish lot who love unique and classy attire. A study done by Hivos East Africa, the Association of Fashion Designers of Kenyan and Equity bank indicates that the fashion industry in Kenya is growing and has the potential to create over 300,000 jobs.
In line with the buy Kenya build Kenya campaign, many people are now purchasing from local fashion labels. This trend has also been aided by the increased disposable income among the middle class. The number of investment opportunities in Kenya’s fashion industry continues to grow in different directions.
In this industry, there are different entry points for investors of different calibers. Those with a creative spark can venture into design and create their own clothing lines. To succeed, you will need to come up with unique and original designs as well as hire or contract a tailor. The quality of fabric and stitching used on your garments should rival international brands. This will allow you to carve your own niche in the market and develop a loyal customer base.
If you do not have the skills to be a designer or you just don’t fancy it, you can set up a clothes store. This way, you do not limit yourself to any particular brand. You can stock all the best international and local fashion brands. To begin with, you can select a niche and establish yourself as the go-to store for such garments. Good niches include baby clothes, lingerie, maternity wear, and jewelry. Additionally, accepting credit cards and moving to online payments can also help you reach more customers, you can compare merchant services to find the most suitable payment processing solutions.
The beauty of the fashion industry is that you can even start with a very low budget. To cut down on initial costs, you can start without a physical store. The money required for rent and goodwill in towns can be used to purchase more stock which will also facilitate growth. This will also help you reduce costs as your business stabilizes.
To access a larger pool of clients, you should establish an online presence. Create Facebook and Instagram pages for your business. As you display your products online, you should also consider paying for advertisements on Facebook. The ads will be specifically targeted to people searching for similar products and thus increase your chances of making sales.
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Investment opportunities in Kenya’s Tourism sector
Data released by tourism Cabinet Secretary Najib Balala revealed that in 2018, Kenya tourist arrivals in Kenya surpassed the 2 million mark for the first time. This translated to earnings of Sh157 billion which represented a 31.2% increase from the Sh119 billion earned in 2017.
Our largest source of tourists remained to be the US. With changes in climate conditions in other global tourist destinations and the introduction of direct flights from the US, the tourism industry will continue growing in the years to come.
Opportunities in this tourism industry range from dealing with travel arrangements and accommodation for visitors to organizing tours to various tourist attractions. There are many scenic views in the country. Take advantage of them and the influx of visitors.
To start small in this industry, you can target local tourists. Many people enjoy a weekend getaway. To begin with, identify potential destinations and visit them. Take note of gate charges as well as accommodation prices if the tour will extend overnight. Determine the transport cost per person for the route and come up with a tour package.
Your target market here should be the young middle class who are yet to start their own families. Have the prices for your tours range from Sh1,500 to 2,500 to make it affordable to more people. The profit margins for such trips range from 20% up to 40%. Market the tours via social media.
To succeed in this industry, you must adhere to the highest standards of professionalism and hospitality. With a good strategy and multiple routes, you can find yourself with a travel club. This is a group of people who enjoy traveling and sightseeing. All you need to do is keep identifying new places for them to visit.
Agribusiness investment opportunities in Kenya
Agriculture has for long been the backbone of our economy. It contributes to 25% of our GDP and employs over 40% of the total population. However, it is still lagging behind and there are numerous opportunities. This sector is projected to be worth $1 trillion in Africa by 2030.
There is a large market for fruits and horticultural products. Fruits like Passion, Strawberries, and Avocados are high-value crops. Some take up to two years to mature but make a worthwhile long term investment.In addition, there is a huge export market for Kenyan flowers.
To get high yields of the best quality, be sure to select the best plant variety. Good farming practice and proper crop management can open the doors to the high-value export market. Hire a farm manager if you do not have the necessary skills or knowledge.
Value addition is another largely untapped aspect of agribusiness. To get better returns, you can add value to your products. You can produce flour from cassava, sweet potatoes and bananas. The need to eat healthier is increasing the demand for such products. Another angle to exploit is the production of jam, peanut butter, yoghurt, and crisps. Processed goods fetch better prices in the market.
Sports investment opportunities in Kenya
The global sports industry is estimated to be worth $1.3 trillion. This industry goes well beyond the pitch. It involves event planning, merchandising and product manufacture, and distribution. The sports industry has been a huge underperformer in Kenya despite the athletic successes we have enjoyed for decades. With the rising rate of unemployment, parents and institutions are investing in sports.
Sports event planning is a lucrative option. Many corporates spend millions of shillings annually for marketing and social corporate responsibility. Sports events are a good way for companies to market their brand and impact positively on society. There is a big gap in this aspect of sports. You can start your own sports event company and market it to various corporates. To gain traction and experience, you can first market your services to local politicians, schools and churches.
There are passionate sports fans in every corner of this country. Such supporters love to wear branded products of their favorite teams. Setting up a sports shop is the perfect way to tap into this market. Tracksuits of big clubs and jerseys of popular players are a big hit. You can also diversify and venture into sports equipment supply. You can target local schools and teams, to begin with.
If you are knowledgeable in a particular sport you can set up your own academy. Provide coaching services at a fee. Invest in modern training equipment and fine tune your coaching skills. Hiring a professional coach is also an option. Run your academy like a professional club and make it fun for the kids. You can also set up various age categories for both boys and girls so that you can have a larger pool of clients. Starting a sports academy is a good investment that gives you a chance to give back to the sport you love.
With a good strategy, you can take advantage of the investment opportunities in Kenya sports industry and you won’t be disappointed.
There is a wide range of investment opportunities in Kenya. As the government continues to lay down infrastructure, more and more markets will open up. You do not need to be a seasoned investor or have an MBA in business to start your own company. All you require is an eye for opportunity, an open mind and a desire to succeed. Once you identify the opportunity that suits you, do your due diligence before you invest.
Money should never be the reason not to invest. With a little creativity, you can start with a little capital and take advantage of the many investment opportunities in Kenya. If you Keep costs low and plough back the profits into the business, there is no limit to the extent your business can grow. However, starting will be the biggest step of your entrepreneurial journey.