Unemployment rates in Kenya are very high but man must still pay the monthly bills and buy food to survive. This leaves most Kenyans with the option of exploring self-employment as a solution. Even for the employed guys, working is sometimes a means to an end not an end in itself. Therefore, after working for a few years, some Kenyan employees quit their jobs and start their own businesses. But what is the secret to self-employment in Kenya?
Finally become self-employed! This is what many founders dream of: self-employment as a path to professional happiness and financial freedom. However, being self-employed also means a lot of responsibility, great risk and long working hours. It is not for nothing that the saying goes: “Anyone who is self-employed works himself and constantly.” Are you ready for this? Learn step by step how to become self-employed and become a real entrepreneur in Kenya.
Steps to being self-employed in Kenya
Do you want to become self-employed? Then you will find an overview of the 10 most important steps that are necessary for this here. In the following we will go into detail on each of the individual points:
- Develop a business idea: What do you want to do for yourself? It needs a clear idea that you want to implement. You need a target group and a clear idea of what you want to offer.
- Use consultations: Before you ignorantly throw yourself into self-employment, you should take advantage of various advisory services. Here you will find important information and answers to questions.
- Write a business plan: No successful self-employment in Kenya without a business plan. It contains important information about the company, makes forecasts about developments and is required for investors.
- Plan for financing: How much equity or debt capital do you need? With a thorough financial plan, you can take care of the exact financing. Otherwise, the company will run into financial difficulties even before it is founded.
- Find a unique brand name: If you are self-employed, you have to give your company a name. Creativity is required – but it is essential that trademark rights are taken into account. Read more on how to register a company in Kenya.
- Set location: Where do you want to start your own business? Considerations between different locations can make the difference between success and failure. Cost and potential audience differ by location.
- Choose legal form for your business: sole proprietorships, partnerships, and limited liability companies? As a self-employed person, you can choose between different legal forms with different effects. This point is very important, especially for the required capital and possible liability. There are six types of entities in Kenya, namely:
- Private Limited Company (LTD): A company limited by shares.
- Public Limited Company (PLC): Members can transfer shares as they wish.
- Company Limited by Guarantee (LTD): Liability is limited by members’ contributions in case of a wound up.
- Limited Liability Partnership (LLP): Combines elements of a company to those of partnership. Foreign company: An existing corporation registered in another state other than its origin country.
- Sole proprietorship: A company owned by one individual.
- Register your business name or company name: Self-employment officially begins with registration with the relevant government agencies as wells with the Kenya Revenue Authority (KRA). With the bureaucracy, you should know exactly where to register your company.
- Take an insurance: Being self-employed means taking risks. In order to be covered for possible problems, you need to take out some insurance.
- Win customers: Founding a company is the beginning – but being successful on your own means winning customers and generating sales. It needs advertising, attention and good work.
This is how you can find your way into self-employment in Kenya: by following and executing brilliant ideas, business models, financing, registration. This information and tips should be used by Kenyans who want to start their own business and become self-employed.