How to Start an Online Shop in Kenya in 2026 (Step-by-Step)
How to Start an Online Shop in Kenya
E-commerce in Kenya keeps growing as more customers shop from their phones and pay by M-Pesa. You can start an online shop with a modest budget - but the businesses that last plan their products, payments and delivery as carefully as their website.
Step 1: Choose What to Sell
Pick products with clear demand, healthy margins and manageable delivery. Strong categories include fashion and accessories, beauty and personal care, phone accessories, home and kitchen items, baby products and niche goods that are hard to find locally. Test demand first by posting products on WhatsApp status and social media and taking pre-orders.
Step 2: Choose Where to Sell
| Option | Pros | Cons |
|---|---|---|
| Social media and WhatsApp Business | Free, fast, close to customers | Hard to scale; no checkout |
| Marketplaces (Jumia and others) | Ready traffic and logistics | Commissions and less control |
| Your own website | Your brand, your customers, no commission | You must drive traffic |
Most successful Kenyan sellers combine them: social media for discovery, a website for trust and orders, and marketplaces for extra reach. A professional e-commerce website typically costs KES 50,000 to 250,000, while a simple catalogue site that takes orders by WhatsApp can start much lower - see website costs in Kenya.
Step 3: Set Up Payments
- M-Pesa is essential. A Paybill integrated with your website (via STK Push) gives the smoothest checkout - see Paybill vs Till.
- Card payments through a payment gateway help with diaspora and corporate customers.
- Pay on delivery builds trust for new shops but adds risk of failed deliveries; consider it only within your town at first.
Step 4: Plan Delivery
Within your town, boda boda riders and local courier services handle same-day delivery. For countrywide orders, use courier companies, bus parcel services or Posta. Publish clear delivery fees and timelines, and package products well.
Step 5: Register and Stay Compliant
Register a business name, get a KRA PIN obligation for your business income, issue invoices through eTIMS and get your county permit. See how to register a business name.
Step 6: Market the Shop
- Post consistently on the platform your customers use most (often TikTok, Instagram or Facebook).
- Run small, targeted ads and track sales from each.
- Collect reviews and share customer photos.
- Optimise product pages for Google search.
- Build a WhatsApp broadcast list of past customers for offers.
Step 7: Deliver Great Service
Fast responses, honest product photos, reliable delivery and easy returns are what turn first-time buyers into repeat customers - the real profit in e-commerce.
A Starter Budget
| Item | Typical cost |
|---|---|
| Business name registration | About KES 950 |
| .co.ke domain | About KES 1,000 to 1,500 a year |
| Website | From a simple catalogue site to KES 50,000 to 250,000 for full e-commerce |
| Hosting | About KES 2,000 to 10,000 a year for small shops |
| Initial stock | Depends on your products - start small |
| Packaging | Branded bags, boxes and labels |
| Photography | A phone with good lighting, or a professional shoot |
| Marketing | KES 500 to 2,000 a day on ads once you are ready to scale |
Start lean: test with a small range of products, then reinvest profits.
Product Photography That Sells
Online buyers cannot touch your products, so photos do the selling. Use natural daylight or a simple light box, a plain background, and show each product from several angles, in use, and next to something that shows its size. Keep the style consistent across your store. Honest photos reduce returns.
Pricing for Profit
Include every cost in your price: product cost, packaging, payment charges, delivery subsidies, returns, advertising and your time. A common mistake is pricing just above the supplier cost and discovering that delivery and ads wipe out the margin.
Returns and Customer Service
Publish a clear returns policy - for example, exchanges within seven days for unused items in original packaging. Respond to WhatsApp messages quickly, confirm orders in writing, and send delivery updates. A professional business email and order confirmations make your shop look established.
Avoiding Fraud
- Confirm payment in your M-Pesa business account, not from a screenshot the customer sends.
- Beware of overpayment scams where a buyer "accidentally" sends extra and asks for a refund.
- Use trusted riders and record parcel handovers.
- Limit pay on delivery for high-value items until a customer has bought before.
Frequently Asked Questions
Do I need a website to sell online in Kenya? Not to start - many shops begin on WhatsApp and Instagram. A website becomes valuable as you grow, because it builds trust, appears on Google and lets customers order without chatting.
How do I accept M-Pesa on my website? Through a Paybill integrated with your site, usually with STK Push so the customer confirms payment on their phone.
Is it better to sell on Jumia or my own site? Marketplaces bring ready customers but take commission. Your own site builds your brand. Many sellers use both.
Do online shops pay tax in Kenya? Yes. Online sales are business income; register your obligations and issue eTIMS invoices.