7 Smart Ways to Start an Online Business in Kenya That Pay Through M-Pesa

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Profitable Online Business in Kenya That Pay Through M-Pesa

When I first thought about starting an online business in Kenya, I had no idea how to handle payments. Then, a friend casually mentioned, “Why don’t you just use M-Pesa?” And that was it! Since then, the convenience of M-Pesa has made it easier for me to run my ventures smoothly and reach more customers, all while ensuring payments were seamless. If you’re thinking of starting your own online business and wondering how to get paid easily in Kenya, M-Pesa might just be the solution for you too!

In this post, we’re going to explore the top online businesses in Kenya that pay through M-Pesa, with tips and tricks to help you get started.

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Key Takeaways

M-Pesa plays a vital role in online transactions in Kenya.
Platforms like ZangCash Pay make it even easier to access funds for your online business and pay bills through M-Pesa. Apply Now to get funds for your business.

The Rise of M-Pesa in Online Business Transactions

Kenya is home to one of the world’s most successful mobile money platforms, M-Pesa. With more than 40 million users, it’s revolutionized the way Kenyans do business. Whether you want to sell crafts, offer freelancing services, or run an e-commerce store, accepting payments through M-Pesa gives you access to customers in every corner of the country.

Here’s the good news: starting an online business has never been easier. You don’t need a fancy website or a brick-and-mortar shop. What you need is a solid idea, and a way to get paid—and that’s where M-Pesa comes in!

E-commerce Opportunities in Kenya

1. E-commerce Stores

Opening an online store is one of the best ways to make money in Kenya. Whether it’s fashion, electronics, or groceries, you can easily set up a store and start selling.

Types of Products to Sell

Local crafts: Think kikoys, Maasai shukas, and other uniquely Kenyan items.
Fashion: Offer trendy African-inspired clothing or international brands.
Electronics and groceries: High-demand products that are perfect for urban buyers.

Platforms to Use:

Shopify: A global e-commerce platform that’s easy to integrate with M-Pesa.
WooCommerce: Perfect if you want to build a custom store.
Jumia: Kenya’s leading e-commerce platform where you can reach a local audience fast.

2. Dropshipping: Your Quick Start to Online Business

You’ve probably heard of dropshipping, but how does it work? With dropshipping, you don’t need to keep products in stock. When someone orders from your site, you simply purchase the item from a supplier, who ships it directly to the customer. This eliminates the need for expensive inventory.

Benefits of Dropshipping:

Minimal investment: You don’t need capital to buy products upfront.
No inventory management: Focus on marketing while your supplier handles the logistics.

How to Start:

Step 1: Find suppliers on platforms like AliExpress or Oberlo.
Step 2: Set up a simple website (use Shopify or WordPress).
Step 3: Promote your products on social media and start receiving M-Pesa payments.

3. Online Marketplaces

Why go through the hassle of building your own store when you can sell on already established platforms?

Some popular options include:

Jumia: The biggest e-commerce site in Kenya.
Kilimall: Another major online marketplace where Kenyans love to shop.

Strategies for Success:

Optimize product listings: Use quality images, good descriptions, and accurate details.
Leverage social media: Promote your listings on platforms like Facebook and Instagram.

Freelance and Consulting Services

1. Freelancing Platforms

If you’re skilled in areas like writing, graphic design, or digital marketing, freelancing might be perfect for you. Platforms like Upwork and Fiverr are great places to find clients, and most clients will be more than happy to pay you via M-Pesa.

Skills in Demand:

Web development
Copywriting
Graphic design
Social media management

Local Platforms:

Kuza Biashara: A platform focused on empowering Kenyan freelancers.
TukoJob: Another local alternative for finding freelance gigs.

2. Consulting Services

Are you an expert in business strategy, marketing, or finance? Consulting can be a highly profitable online business.

Areas of Expertise:

Business development
Marketing strategy
Financial advice

Start by building your client base through networking. LinkedIn is an excellent place to start, or you can even use testimonials from previous clients to showcase your expertise.

Content Creation and Digital Products

1. Blogging and Vlogging

If you’re passionate about a specific topic, why not blog or vlog about it? With platforms like Google AdSense, you can start earning through ads, affiliate marketing, or sponsored content.

Monetization Strategies:

Google AdSense: Earn money every time someone clicks on an ad on your blog or vlog.
Affiliate marketing: Promote products and services that your audience will love and earn commissions.

Choosing a Niche: It’s important to focus on something you care about, whether it’s tech, travel, or personal finance.

2. Selling Digital Products

Selling digital products like e-books, online courses, or even stock photos can be very profitable.

Types of Products:

E-books: Share your expertise in writing and sell guides or how-to books.
Online courses: If you’re skilled in something (like graphic design), create a course and sell it online.

Platforms for Selling:

Gumroad: A great platform for selling digital downloads.
Teachable: Perfect for creating and selling courses.

Technology and Development

1. App Development

Kenya’s mobile app market is booming. If you’re a developer, you can create apps that cater to local needs, whether in health, education, or even business.

Integrating M-Pesa:

When building apps, M-Pesa integration allows users to pay for services directly from their mobile phones, making it an attractive payment option.

2. Web Development Services

Did you know that having an online presence can significantly boost sales for Kenyan businesses? Offering web development services to local businesses is an excellent online business model.

You can also help companies by integrating M-Pesa payment gateways into their sites, making it easier for them to accept payments from customers.

Niche and Emerging Markets

1. Handmade Crafts

Kenya’s rich culture has created a huge demand for local handmade crafts. Platforms like Etsy allow Kenyan artisans to sell their products globally.

What Sells Best?:

Beaded jewelry
Wooden carvings
Handwoven baskets

2. Affiliate Marketing

Affiliate marketing is another great way to earn online. You promote products, and when someone buys through your link, you earn a commission.

How It Works: You sign up for affiliate programs, promote their products, and earn a commission for every sale you generate. Popular affiliate programs in Kenya include Jumia Affiliate Program and Amazon Associates.

Frequently Asked Questions (FAQ)

How can I set up an M-Pesa account for my business? Visit your nearest Safaricom shop to register for a business account, or visit the Safaricom website for more details.
What are the legal requirements for starting an online business in Kenya? You’ll need to register your business with the Business Registration Service (BRS) and get the necessary licenses.
How do I market my online business effectively? Use social media, SEO, and content marketing to drive traffic to your site. Don’t forget to leverage platforms like Facebook and Instagram for ads.

Survey: What’s Your Preferred Way to Earn Money Online?

E-commerce
Freelancing
Content creation
Affiliate marketing

Conclusion

Starting an online business in Kenya that pays through M-Pesa is easier than ever. From e-commerce and freelancing to affiliate marketing and app development, there are countless opportunities.

Remember, platforms like ZangCash Pay can help you manage your bills and business expenses. Apply Now to get started today!

What kind of online business are you thinking about starting? Let me know in the comments, or share your experiences!

Sources, Facts, Citations, and Statistics

Safaricom’s Annual Report (2023): M-Pesa has over 40 million active users in Kenya, highlighting its dominance in mobile payments.
Communications Authority of Kenya (2021): The e-commerce sector in Kenya reached KES 41.9 billion (approximately $410 million) in online sales, showcasing significant growth attributed to mobile money usage.
World Bank Report: M-Pesa has contributed to financial inclusion in Kenya, particularly among the unbanked population, facilitating access to essential services.
FSD Kenya (2020): Reports indicate that mobile money services like M-Pesa account for a significant percentage of all financial transactions in urban areas.

Safaricom’s Official M-Pesa Page: Provides extensive information about M-Pesa services tailored for businesses.
Business Daily Africa: Offers insights and articles on trends affecting the Kenyan economy and e-commerce.
Truehost: Features guides on starting an online business using M-Pesa as a payment option.
Communications Authority of Kenya: Publishes reports on internet penetration and mobile money usage statistics.

Safaricom – Information about M-Pesa services tailored for businesses.
Business Daily Africa – Articles covering trends in Kenyan e-commerce.
International Trade Administration – Comprehensive overview of the Kenyan e-commerce landscape.
FSD Kenya – Research and insights on financial inclusion and mobile money in Kenya.

Citations: [1] https://businessinkenya.co.ke/posts/30-best-online-businesses-in-kenya-that-pay-through-mpesa/ [2] https://www.theseus.fi/bitstream/handle/10024/502696/Njoroge_James.pdf;jsessionid=76EE875D699E3AB67138710D2E8C7023?sequence=2 [3] https://intasend.com/online-businesses/how-to-make-money-online-in-kenya-top-7-best-ideas/ [4] https://truehost.co.ke/online-business-in-kenya-that-pay-through-mpesa/ [5] https://www.safaricom.co.ke/main-mpesa/for-your-business/business-one-account [6] https://www.trade.gov/country-commercial-guides/kenya-ecommerce [7] https://www.safaricom.co.ke/main-mpesa/for-your-business/business-till [8] https://business.m-pesa.com