E-Commerce in Kenya | How to Make Money From Ecommerce | 2025

Introduction to E-Commerce in Kenya

Kenya’s booming e-commerce market has transformed purchasing in unexpected ways. Mobile transactions through services like M-Pesa spurred online shopping’s surge, as smartphones spread across the country. This revolutionary shift is remodeling commerce nationwide. Now the internet connects buyers and sellers in fresh forms, whether town or village. Rural and urban Kenyans alike take advantage of e-commerce’s convenience and selection. This evolving digital economy enlivens business opportunities in Kenya making it best to discuss E-Commerce in Kenya _How to Make Money From Ecommerce .

Both fledgling ventures and established companies face a rare chance online. The internet levels the field regardless of size. Small artisans can find new audiences just as large chains can expand reach. With care and forethought, anyone can engage this market’s growth to nurture a web-based trade. Let us explore nuances of e-commerce in Kenya to uncover how you may ride this digital wave toward prosperity.

What is eCommerce? 

Ecommerce, short for electronic commerce and also known as online shopping or internet purchasing is the process of buying goods or services over the Internet.These days, just about everything is available for purchase over the internet with a few clicks of your mouse –clothing and books to food stuffs and furniture. ECommerce is where anything can be buying and sell over the Internet, things that sometimes you cannot shipped to but even digital products or services are also a form of electronic commerce.

B2C (business-to-consumer), and B2B. It simply mean selling products or services by a company to consumer is called B2C E-commerce whereas sell the product and service between two businesses (ex: retail market) it refers as B2B e-Commerce.

ECommerce represents a big part of our lives today. It is the most convenient thing for both buyers and sellers. And whoever needs to should make use of a web-based keep /business.

The Evolution of E-commerce in Kenya

Before we do that, let’s take a peek at the current eCommerce environment. Kenya and the advent of online shopping did not just pop out. An evolution that has come with invention, grit and localized ingenuity.

Fast forward to the early 2000s, e-commerce sounded like a far-fetched idea in Kenya. Data was limited, smart phones were communal and digital payments didn’t exist for the masses. But the storm clouds were gathering.

M-Pesa was a game changer when it debuted in 2007. This was one of the easiest ways for Kenyans to exchange money through mobile phones. This has opened the door of online shopping.

The ripening of online access and smartphones provided the birth to these eCommerce sites. Jumia, the “Amazon of Africa”, started operations in Kenya in 2012 It was a big step. These were closely followed by Kilimall and Safaricom’s Masoko.

Nevertheless, this growth is not thanks solely to large companies. There was some collaboration from local entrepreneurs as well. All of those different things, from products to crafts; they were selling everything on the internet. Marketplaces saw the rise of enterprise connecting with customers directly on Social media platforms like Facebook and Instagram.

Each step has led to today. We have a vibrant, growing eCommerce ecosystem full of opportunities.

Current E-commerce Market Landscape

Jumia, Kilimall, and Safaricom’s Masoko lead the pack. However, many smaller platforms are emerging, focusing on specific needs.

What are Kenyans buying online? Electronics like smartphones, laptops, and appliances are popular. Fashion, too, is a hit, attracting both local and international brands. Grocery and household item sales have surged, especially post-pandemic.

Interestingly, mobile devices drive this growth. They account for 36% of eCommerce sales. Kenyans shop from their phones, often on the move.

Now, let’s look at the market share of the top platforms. This variety opens doors for innovation and new entrants. So, let’s see how you can join in and benefit.

How to Make Money from eCommerce in Kenya

Let’s talk about how to profit from the eCommerce boom. Whether you’re starting out, already in business, or dreaming of a side hustle, there’s a chance for you. Kenya’s eCommerce market is open to all.

1. Start an Online Store

This is likely the easiest way to start eCommerce. Imagine it as a shop open 24/7, reaching customers across Kenya and possibly beyond.

Here’s how to get started:

1. Find your niche
2. Source your products
3. Set up your online store
4. Market your store

Currently, fashion and electronics are the top-selling categories. Mobile devices account for 36% of sales. So, ensure your store is mobile-friendly!

2. Try Dropshipping

Can you imagine running a store where the products which are delivered to your customer never pass through your hands? That is what dropshipping has always been about, and its the best way to get started in e-commerce with low risk yet high reward.

Here’s how it works:

1. You launch an eCommerce site and inventory goods.
2. Your selling platform, when a customer buys something you buy it for the 3rd party supplier.
3. The supplier ships the item directly to your customer.

The best part? No Inventory Needed To Buy To access suppliers, you can use platforms such as AliExpress or Oberlo. Then, you can promote your objects on-line in addition to over social networks.

3. Become an Affiliate Marketer

If you can talk people into buying things and have a strong online following, then affiliate marketing could be your business model. It is a method to success in eCommerce. You represent other companies and get a percentage of each sale that you generate.

How to get started:

1. Register for Affiliate Programs like Jumia’s, or Kilimall
2. Select products that appeal to your audience
3. Produce content (blog posts, videos and social media) about these products
4. Insert your special affiliate link in the content.
5. So you earn a commission when someone purchases through your link.

Use Instagram, YouTube or TikTok to grow your audience. In affiliate marketing, content is king.

4. Offer Freelance Services for eCommerce Businesses

The eCommerce sector is expanding, increasing the need for skilled professionals. These experts help businesses thrive online. If you have skills in web design, SEO, digital marketing, or product photography, there’s a demand for you.

Opportunities include:

• Designing and optimizing eCommerce websites
• Managing social media accounts for online stores
• Creating compelling product descriptions and listings
• Developing marketing strategies for eCommerce brands

Platforms like Upwork and Fiverr are great places to start offering your services, but don’t underestimate the power of local networking and job boards.

5. Sell Digital Products

Your product doesn’t need to be a physical one in the digital age. The market of digital products (eBooks, online courses, software and even digital art) is growing rapidly.

Ideas for digital products:

1. You could write an eBook Guide on “How to Start a Lucrative Online Business in Kenya”.
2. You could Develop a digital marketing skills training course.
3. Create social media post or website design templates
4. Produce and sell equivalent looks that reflect Kenyan life situations

With digital products, the cost-to-benefit ratio favors the benefits. Once created, they can be sold forever for a small percentage of their original costs.

6. Leverage Social Commerce

Kenyans and their smartphones, smh! Turns out, they have other plans for the devices than just online shopping.

How to get started:

1. Firmly plant your flag in Instagram and Facebook, as well as WhatsApp and Tiktok.
2. Highlight your products with professional photos and interesting post.
3. Look to Tiktok, Instagram Shopping and Facebook Shops features for user-friendly purchase processes.
4. Tell us stories, go live and direct message.

65% of online shoppers in Kenya find products via Social media. That is a Huge Pandemic menu, waiting to be plucked!

7. Sell on Existing Online Marketplaces

If setting up your own store seems overwhelming, you can still sell online using established platforms like Jumia or Kilimall. List your products, tap into their traffic, and start making sales with minimal marketing effort. These platforms already have a loyal customer base, so you benefit from immediate visibility without the need to build your own from scratch.

8. Subscription Box Service

A subscription box service offers customers a curated collection of products delivered to them regularly (e.g., monthly or quarterly). This business model provides consistent revenue and builds customer loyalty.

Subscription Box Ideas:

• Beauty products: Curate a selection of skincare and makeup items.
• Snacks: Offer a monthly box of Kenyan or international snacks.
• Fitness gear: Provide fitness enthusiasts with workout gear or supplements.

Customers enjoy the surprise element and convenience of having products delivered to their doorsteps regularly.

9. Local Drop Shipping

You can team up with local suppliers in Kenya for dropshipping. This leads to faster shipping and lets you offer products for Kenyan consumers.

Benefits:

• Faster delivery times.
• Opportunity to support local businesses.
• Easier quality control and customer service management.

Local drop shipping merges dropshipping with a focus on local products and suppliers.

10. eCommerce Consulting

If eCommerce is your expertise, then consulting. You assist other people succeed online. Give tips on shop set up, marketing or how to conquer the vagaries of an eCommerce brand in Kenya.

What kind of consulting services could you offer?

• Store Setup: Help businesses establish and manage online stores.
• Develop digital marketing plans to increase traffic and sales. Marketing Strategies
• Legal and Tax Advice: Legal advice to relate businesses with the legal system for eCommerce in Kenya.

The popularity of eCommerce consulting is on the rise as more businesses are moving online.

11. Start A Niche Blog or YouTube Channel

If you are passionate about a product category (such as gadgets, beauty or fitness) it may be worth setting up your own niche blog and /or vlogging channel on Youtube. Then quickly swipe to the next page and use it for presenting products, giving tips or telling a story.

How to Monetize:

Affiliate Marketing — Promote products by sharing affiliate links and receive commissions

Partner with brands for paid reviews and sponsored posts as Sponsored Content.

Ad Revenue: Make money on blogs and YouTube with ads

You also have more monetization options as your audience grows. This makes it a lucrative business opportunity in the long run.

12. Print-on-Demand (POD)

Print-on-demand allows you to sell custom items such as T-shirts, mugs, phone cases etc… without having any inventory. The product is only printed upon the customer ordering it and then directly sent to them.

How to Start:

Design your products – create items like t-shirts, mugs or tote bags with unique designs.

Select a POD platform: printful** or Printify They are connected to Shopify/ WooCommerce.

Selling your products: Create/design and do some marketing on social or online shop.

POD is low-risk commerce at its finest since you aren’t required to purchase inventory before selling.

13. Courier or Delivery Service

As online shopping becomes more frequent, delivery services is a must. So, it is also a money-making business that you can start from your city. This is also the case if you cooperate with online stores that need help with shipping.

How to Start:

Transportation: Buy or rent cars/bikes (for delivery). invest

Work with eCommerce stores: local e-stores can avail your service

Prioritize customer service. Get your items delivered on time and professionally to maintain a good name.

The demand for fast and reliable delivery service is higher than ever due to the increased trends at shopping online.

14. eCommerce Marketing Services

Marketing is hard, isn’t it? At least a lot of eCommerce businesses seem to think so. The good ones can be a primary source of marketing service providers if you are already adept at Facebook Ads, Google Ads or even SEO. This makes businesses more visible and allows them to make online sales.

Services You Can Offer:

SEO -Assist stores in upranking on search results

Paid ADS: Running Facebook or Google Ads campaigns (Bringing traffic and sales).

Social Media -Manage creation of social media content for online businesses.

Also you can make them money by marketing. In exchange you will get a fee for the services provided by yourself.

15. Provide digital agency services

• Start a digital marketing agency. Offer SEO, social media, and content marketing to businesses.

To succeed in eCommerce in Kenya:

• Conduct market research to identify profitable niches and understand your target audience
• Comply with legal requirements like business registration and taxation
• Set up a professional, user-friendly website with secure payment options
• Find reliable suppliers and ensure quality control
• Develop a strong online presence through digital marketing and branding
• Provide excellent customer support and delivery services
• Continuously analyze performance and adapt to market trends

16. Develop a Niche B2B eCommerce Platform

Build an online marketplace for Kenyan businesses. Focus on sectors like agriculture, office supplies, or construction. This platform will link suppliers with buyers, making procurement easier.

17. Offer Virtual Shopping Assistant Services

Take advantage of the trend for personalized shopping by offering virtual assistants. These helpers can aid busy professionals and newcomers to online shopping in finding and buying products that suit them.

18. Create and Sell Online Courses for eCommerce Entrepreneurs

Develop comprehensive online courses teaching various aspects of eCommerce, tailored to the Kenyan market. Topics could include:

• Setting up an online store
• Digital marketing strategies for Kenyan audiences
• Navigating local regulations and taxes
• Optimizing for mobile commerce

19. Launch a Subscription-Based eCommerce Analytics Tool

Create a software tool for Kenyan eCommerce businesses. It should track performance, analyze customer behavior, and support data-driven decisions. Include features for sales forecasting, inventory management, and competitor analysis.

20. Start a Localized Product Photography Service

The document highlights the need for professional photos in social commerce. So, offer tailored product photography services to Kenyan eCommerce businesses. This could include:

• High-quality product shots
• Lifestyle photography featuring local models and settings
• 360-degree product views
• Short product videos for social media

21. Develop a Local Influencer Marketing Platform

Build a platform linking Kenyan eCommerce businesses with local influencers. This service aids brands in finding suitable influencers, managing campaigns, and tracking results.

22. Become a Virtual Assistant

Becoming a virtual assistant offers good online pay. They work remotely for clients, are self-employed, and skilled. Their support ensures business smoothness. Tasks include admin work, managing social media, PPC campaigns, project management, transcription, translation, and overseeing operations.

To become a virtual assistant, you only need to leverage on the skills that you already have. 

If you are good at transcription, look for clients that need your services. You can look for clients from freelancing sites like:

23. Start a Niche Blog

A blog, as we all know is an information site which you often share your opinions on a particular subject.

• Select Any Profitable Niche & Start Blogging on It They range from fitness, finance, gardening, photography, fashion up to health and many more.
• The second way is to monetize it as CPC and CPM ads.

These will get you money when someone clicks the ad and then depending on how many views these ads received. It can be monetized by selling ads or using affiliate marketing. Affiliate marketing is the way where advertisers pay you to promote their products. You just have to start getting commission on the sales (sales from your blog) created.

24. Become a Travel Consultant

Are you a Kenyan travelling enthusiast looking to make money online? Become a travel agent. You can earn a commission helping travelers with making hotel and flight inquiries as well vacation planning. Check out a travel marketplace site e.g safaribookings for such works and many more. com

25. Start a YouTube Channel

Each day, over 5 billion video views on YouTube alone. A video hosting site where people go to be entertained or informed. Then you need to go and establish your YouTube channel. If you have an email list, the most common action would be to inform, or entertain your followers.

When a YouTube channel reaches 1000 subscribers and it has over last 4000 hours of watch time, the initial monetizing begins taking place on this channel. YouTube: 200/= to400/= per 1000 view.

26. Article writing

As a passionate writer, you can help online businesses stay online. These sites often need new, unique content. Positioning yourself as a pro writer will attract these businesses. The amount of money you will earn writing for companies depends on your skillset and your niche. 

27. Provide Online Consultancy

Are you trained and have extensive experience in your profession? If yes, you can turn to consultancy; giving expert advice online can make money.  Many industry leaders are searching for expert information but don’t know where to get it.  You can ease their burden by providing their much-needed advice for money. 

28. Sell Custom Gifts Online

There is no great way of making real money online like selling custom gifts.  You can advertise your custom gift ideas, like mugs and jewelry, and sell them to customers who need them. In 2024, create gift ideas for special occasions. Then, sell them on social media and eCommerce sites like Jumia.

29. Start a Recruitment Agency

Starting a recruitment agency can be profitable. Many businesses outsource hiring because they lack time or expertise. Agencies like Corporate Staffing Kenya understand their clients’ job requirements.

They find and recommend the best candidates, ensuring the right skills and knowledge for business growth. If you’re knowledgeable and seeking an online side hustle, consider starting a recruitment agency. You can easily connect with clients online.

30. Start a Door to Door delivery business

With people spending more time at home these days, more things need to be delivered. As a result, delivery services have been booming in Kenya ever since the 2020 pandemic. You can deliver food, flowers, or purchases from supermarkets. All you need is a motorbike,a rider, internet to find customers and you can run your business from home.

31. Career Counseling

Many millennials in Kenya struggle to find a career after college. Since they often use social media, it’s the best place to market services. Therefore, look for platforms to advertise. Soon, you’ll see many subscribing or reaching out for career advice.

The Mobile Revolution in Kenyan eCommerce

Now, let’s delve deeper into the genuine catalyst facilitating Kenya’s booming eCommerce landscape: the omnipresent mobile phone. This pocket-sized innovation functions not merely as a means of communication, but rather as a personal shopping emporium, financial institution, and business tool amalgamated into a single device.

An astonishing 70% of all eCommerce transactions in Kenya transpire via mobile devices. Indeed, Kenyans routinely browse expansive catalogs, conduct comparative analyses, and finalize purchases directly from their phones—frequently while multi-tasking or on the move.

Central to this sweeping technological transformation stands M-Pesa. This pioneering mobile payment system has revolutionized how Kenyans remit compensation for online goods and utilities. Presently, over half of all digital settlements in Kenya are effectuated through M-Pesa—a service renowned for its rapidness, security, and trustworthiness amongst millions of Kenyans.

Yet eCommerce expansion in Kenya extends beyond remuneration. Mobile infrastructure is likewise propelling social commerce worldwide. Platforms such as Instagram and Facebook have organically materialized into impromptu marketplaces, enabling businesses both mammoth and diminutive to reach clientele immediately through their smartphones.

Challenges in the Kenyan eCommerce Landscape

Kenya’s eCommerce sector is full of exciting opportunities, but it also presents challenges. Knowing these challenges helps you stay prepared.

1. Infrastructure hurdles: Urban areas are easily connected, but delivering to rural areas is tricky and costly. Logistics and last-mile delivery pose major challenges.
2. Trust issues: Many Kenyan consumers are still wary of online transactions. In fact, 45% prefer cash on delivery, despite advancements in secure digital payment systems.
3. Digital divide: Internet use is rising. But, many rural areas still lack access. This may exclude a large market segment.
4. Security concerns: As with any growing digital economy, there are cybersecurity threats. They concern both businesses and consumers.
5. Stiff Competition: The market is getting crowded. It’s tough for new entrants to stand out.

These challenges also create opportunities for new solutions. For example, a business with secure, easy payment options could thrive on the demand for cash on delivery.

Government Initiatives and Regulatory Environment

Kenya is not alone in the eCommerce boom, and governments have sat up too. It is actively endorsing and, where necessary enforcing regulation of the sector. Here are some of the important initiatives and regulations to look out for:

1. Digital Economy Blueprint:
2. National ICT Policy
3. Foreign Account Tax Compliance Act
4. Data Protection Act
5. Digital Service Tax
6. Support for SMEs

Such rules could be hard to follow. But, their purpose is to bring stability and trustworthiness in eCommerce.

While navigating these regulations can be challenging, they’re ultimately aimed at creating a more stable and trustworthy eCommerce environment.

Future Prospects and Opportunities

Kenya’s eCommerce future looks promising. By 2028, it’s expected to reach $3.5 billion. This growth will be fueled by more internet users and the rise of digital payments.

Here are some exciting trends and opportunities to watch:

1. Rural expansion
2. Social E-commerce boom
3. Mobile-first innovations
4. Artificial Intelligence and personalization
5. Sustainable eCommerce

Success Stories

1. Jumia

Often called the “Amazon of Africa,” Jumia has become a household name in Kenya. Their success lies in their wide product range, efficient logistics, and focus on mobile users.

2. Copia

This platform links skilled pros with customers needing services, like home repairs and beauty treatments. It has succeeded by addressing a gap in the service industry.

3. Lynk

 This innovative company is bringing eCommerce to rural Kenya. They’ve succeeded by combining digital technology with a network of local agents.

What sets these companies apart? Here are some key success factors:

Conclusion

E-commerce in Kenya is growing and transforming shopping, business, and daily life. It spans from busy Nairobi to remote villages, opening new opportunities.In Kenya’s digital economy, there’s a spot for everyone. This includes aspiring store owners, future influencers, and those keen to help businesses online. Key factors? Stay updated, be creative, and take action.

Frequently Asked Questions