The most successful business ventures begin with the entrepreneur identifying a need or a gap in product or service delivery in a certain market and transforming it into an income generating solution.
The following are top five problem solving, capital intensive investment opportunities in Kenya.
A wide variety of investment opportunities exist in the manufacturing sector. Other booming sectors of the economy such as construction, agriculture and transport utilize various products which are mostly imported into the country. Discerning entrepreneurs can seize the opportunity to produce such items locally for domestic and export markets.
Investors can also focus on manufacturing goods used frequently in people’s day to day lives. Single or joint ventures can be established for the manufacture of plastics, fertilizer, electrical equipment, chemicals, building materials and components, garments and agro-processing.
While there is a growing need for education in Kenya, the spaces available in public schools are not enough to cater for this demand.
Those who do not make the cut have to find places in private institutions which poses a great investment opportunity.
Most parents also prefer to enroll their children into private schools since there is a common perception that public schools do not offer the quality of education they would desire for their children due to overcrowding.
With the abundance of qualified teachers in the country all an investor needs is the right facilities to set up a secondary school or an institution of higher learning.
Agriculture remains the mainstay of the economy in Kenya. It derives its importance from the fact that food is a basic need; something humans cannot do without.
In the recent past, focus has shifted to the use of greenhouses which allow for growing of horticultural products under predetermined conditions for better yields and higher profits.
Some of the most profitable crops to grow under this method include onions, carrots, tomatoes,watermelon and cabbages due to their constant demand in the market.
Flower farming is also lucrative since there is a ready market for fresh flowers in western countries. Poultry and pig farming are also great investment opportunities since demand for their products surpasses the supply in the market.
Besides farming, other opportunities in the sector include irrigation, transport and food processing.
4). Real Estate
The demand for land and housing has risen over the last ten years due to a steady increase in population and the emergence of a middle class hungry for a better lifestyle.
This makes property development one of the best business ideas in the country with very high returns on investment.
Devolution has also boosted the sector by bringing development to different cities in the country hence increasing the land value and creating a need for housing for county employees and the business fraternity in such areas.
Potential investors in this sector should concentrate on affordable housing by use of modern technology such as prefabricated structures to build housing estates, apartment complexes, residential villas and office complex buildings.
Residential developments should focus where need is highest such as houses worth between Sh1.5 million and Sh3.5 million targeting the lower middle income earners and others selling at between Sh4 million and Sh6 million targeting the upper middle income segment.
5.) International Trade
No country can boast of self sustenance hence the need for import and export of different commodities either as finished goods, semi finished goods or raw materials.
There are numerous products that an investor can import into Kenya and find a ready market, which is businessmen have been flocking China to purchase her cheap products for resale locally.
Some of the most common fast moving goods from China include mobile phones, clothes, spare parts, electronics, jewelry and clothes.
Importation of high end women clothes from Turkey, used Japanese vehicles and second hand clothes from Europe and USA are also very profitable ventures.
It is worth noting that this kind of investment involves a lot of licenses, permits and procedures that keep changing from time to time. One should therefore acquaint themselves with them to ensure smooth running of business.