The shoe business in Kenya has grown into a profitable venture, attracting many entrepreneurs seeking to tap into its potential. However, while the business offers substantial rewards, it is also accompanied by its own set of challenges. A large number of Kenyans, especially in urban areas, have turned to selling shoes as a primary source of income, with many finding success in the trade.
Experts have observed that venturing into women’s shoes offers a higher profit margin compared to men’s shoes, as they tend to sell faster. The success of Eastleigh town, known for importing shoes and clothes in bulk, has further cemented the shoe business as one of the most lucrative in Kenya.
Starting the Business: Capital and Location
When starting a shoe business in Kenya, choosing the right location is key. Areas like Githurai, Embakasi, Donholm, Kawangware, and Nairobi CBD (including Moi Avenue, Gikomba, and Muthurwa) are considered ideal due to their high foot traffic and customer demand. Entrepreneurs can choose to sell women’s, men’s, or children’s shoes, with the women’s category being particularly profitable.
To open a reasonable store, an initial capital of Ksh.200,000 is advisable. However, if one opts to sell second-hand shoes (mitumba) on busy streets, Ksh.20,000 might suffice. In Nairobi’s CBD, business owners must also consider the cost of goodwill, with a minimum of Ksh.150,000, along with monthly rents that can start from Ksh.40,000.
Business Licenses and Suppliers
Business owners must obtain a license from the Nairobi County offices, located opposite Nairobi Law Courts. The license typically costs between Ksh.15,000 and Ksh.30,000 annually, depending on the size of the business. For sourcing stock, Eastleigh remains a prime destination for wholesale shoes, offering competitive prices. Alternatively, entrepreneurs can import shoes from Dubai or purchase from Gikomba for second-hand options.
Profitability and Expansion
Shoes, especially those targeted at women, move quickly, leading to impressive daily profits for many entrepreneurs. According to interviews with several Nairobi CBD business owners, profits range from Ksh.2,000 to Ksh.15,000 per day, depending on the scale and location of their business.
Faith Kithome, a young entrepreneur, started her shoe business in Nairobi’s Kahawa Wendani after facing challenges securing formal employment. She recognized the opportunity in selling women’s shoes, particularly targeting university students, a large and consistent clientele. Initially, most of her sales came through online inquiries, which required her to deliver the shoes to her customers in Nairobi’s central business district. This inconvenience led her to move her business to Nairobi CBD, where she could directly interact with clients and boost sales.
Learning from Others
Kithome’s journey mirrors that of Hellen Wangui, the founder of Helwas Men’s Collection. Starting with only Ksh.7,000, Hellen sourced her shoes from Kamukunji before gradually increasing her stock and capital through reinvested profits. She now imports shoes directly, demonstrating that even with modest initial capital, success in the shoe business is achievable.
Both entrepreneurs stress the importance of starting with available resources and strategically growing the business. In an industry where small businesses often fail within the first three to five years, careful planning, market research, and adapting to customer needs are essential for long-term success.
Managing Stock and Avoiding Losses
For many, the key to profitability lies in managing inventory wisely. Entrepreneurs are advised to focus on stocking fast-moving shoes and avoiding dead stock, which can prove costly in the long run. By staying attuned to customer preferences and market trends, business owners can ensure their shoes are in demand and their profits continue to grow.
Conclusion
Despite the challenges, the shoe business in Kenya continues to be a promising and profitable venture for many entrepreneurs. With the right strategies, smart stock management, and the right location, anyone can venture into the business and see significant returns. Just as Hellen and Faith have proven, success is not solely dependent on capital but on the ability to adapt and meet customer needs effectively.
Written by Justine Nyachieo, Business Man and Mentor