How to Start a Delivery Service Business in Kenya

By Ann Wanjiku Last updated Oct 30, 2022

This article will provide you with detailed information on how to start a delivery service business in Kenya.

Kenya’s economic environment has improved, and numerous investors have opened businesses in all major towns. As a result, there is a greater need for the rapid distribution of products and packages, which the national postal service has been unable to provide adequately.

However, the few large courier businesses that dominate the market have not been able to provide the kind of efficiency that most customers expect.

In Kenya, delivery services have become a rapidly expanding industry. Most enterprises and businesses strive to increase their online presence by providing delivery services to their consumers; you can take advantage of this trend by purchasing a motorcycle and advertising your services online.

How to Start a Delivery Service Business in Kenya

1. Acquire transportation

New motorcycles may be purchased for less than Ksh 100,000. Three motorcycles and a modest storefront in town will get you started. Another option is to buy a cheap secondhand car and a motorcycle. You will also need to rent an office space. Rent on an excellent stall ranges from Ksh.4 000 to Ksh.15 000 per month in Kenya.

2. Choose a location

Given that your company’s success is less dependent on passing foot traffic, you have more flexibility in choosing a location for an office. Situating your business outside CBD or on a higher floor is cheaper. Perhaps then you won’t have to pay goodwill fees or excessive rent.

3. Get a business license

The Communications Authority of Kenya regulates courier services. To begin, you must apply for the Ksh30 000 intra-city license. This will allow you to deliver packages across every major city in Kenya.

For delivery services, motorbikes can get the “town operators” license, which also costs Ksh30 000. Larger businesses can apply for a regional license for Ksh50,000. You will also need a single business license which costs around Ksh20,000 per year. Liability insurance is something to consider in addition to getting the necessary permits.

4. Get the necessary equipment

5. Market your business

Prospecting is one of the most inexpensive and productive ways to find new customers. To achieve this, you’ll need to make cold calls and knock on prospective customers’ doors to expand your network. Provide your prospective assurance and confidence by promising you’ll give them more personalized service than the big corporations.

Distribute your business cards. You should also coordinate with local businesses that get a lot of foot traffic so that you may leave a stack of your company’s flyers for regulars to read. Connecting with online vendors may also be aided by engaging in some social media marketing on platforms like Facebook and Twitter.

Cost of starting a delivery service business in Kenya

With a budget of Ksh500 000, you can get your business up and running. However, it probably won’t be enough to ensure your survival, so you’ll need to keep plowing back into the firm with your earnings until it’s ready to take off. For courier companies, the minimum time to profitability is between two and three years.

How profitable is a delivery service business in Kenya

The success of your business relies on the quality of the customers you bring in and the method you use to set prices. Delivery costs can range from Ksh 250 for a small letter to Ksh 500 for a large package.

Documents and packages that require special care can cost more than Ksh 1 000. Charges may increase for bags that are particularly large or heavy. Providing courier services to as few as 30 customers per day can generate an average of Ksh 200 000 per month

Read also, How to Write a Business Plan.