Business Which is not Profitable in Nairobi


Nairobi is among the most populous cities in Africa with a population of over 5 million. Being the fastest growing cities in the world, doing business is the main thing for most residents.

It is believed that once you set up a business in Nairobi, even if it’s small, you will always make a kill out of the venture. This is made possible by the huge number of residents who are consumers rather than producers.

Though there are numerous business opportunities with good returns in the city, some of the businesses are not worthy taking. They are hard to run and attract huge losses. We discuss the businesses below.

1. General shop
Every month you long queue at every supermarket you go in town or estates. The emergency of hypermarkets, shopping malls and supermarkets have completely killed general shops. There is a time these small shops used to rule in our estates but that time is gone.

The change of lifestyle and the growing number of middle income earners in the city have impacted negatively on general shops, thus creating avenue for supermarkets to thrive.

If you are planning to have a general shop in the city, you better think twice coz you might regret with time. However, few estates like Kawangware and Embakasi might be good places to set up the business.

2. A small Pub
We all know that pubs do well in Nairobi but we don’t exactly know what the owners go through in order to make the business successful. Owning a bar is not bad but if you have small capital don’t even think about starting the business, you might curse your ancestors.

The only people who are successful in this business are those who have set up the venture in town centre and posh estates where they charge a single drink in excess of Ksh 1,000.The bars found in eastlands make money during weekends only.

3. Selling office and home furniture
I have interacted with many entrepreneurs in this industry, majority confess that the business turned out to be something else. These people wanted to make a kill within the shortest time possible but some of them are now disappointed.

The competition in this industry is very stiff and the people who rule the industry are the ones who started the business earlier.

One of the challenges is that one has to pay monthly rent yet the furniture don’t move as fast as supermarket goods.

4. Buying and selling cars
There used to be a time when anyone with this business could make handsome profit from ignorant Kenyans. Today very few people buy cars from individuals, unless they buy from friends.

It was established that many people in Nairobi used to buy stolen cars and sell to innocent customers. This put many car owners into risks of being arrested and charged for handling stolen property.

Nowadays several people order cars from SBT Japan or acquire them from established firms like General Motors, Toyota Kenya and Porsche East Africa. It is therefore pointless to start this business, unless you are prepared to fail.

5. Operating a cyber café
In the year 2000, every Nairobian had intentions of operating a cyber café.The business was booming and every cyber you attended you could get long queues, stretching even to the roads.

Since the introduction of smart phones, several cyber cafes have been closed down, more will be closed. If someone knows that you are planning for you, he will laugh at you.






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