How to Start an IT Firm in Kenya
If you enjoy the fast-paced world of IT, then venturing into the industry will be a good fit and we are going to guide you on how to go about it. Kenya is the innovation leader in technology in emerging markets in both East and Central Africa and is considered as one of the three top innovation hubs in Sub-Sahara Africa.
So, the following are some of the statistics about Kenya, in light of the digital space:
- Kenya had a population of 54.38 million in January 2021.
- Kenya’s population increased by 1.2 million (+2.3%) between January 2020 and January 2021.
- 50.3% of Kenya’s population is female, while 49.7% of its population is male.
- 28.2% of Kenya’s population lives in urban centres, while 71.8% lives in rural areas.
Internet users in Kenya
- There were 21.75 million internet users in Kenya in January 2021.
- Internet penetration in Kenya stood at 40.0% in January 2021.
Social media statistics for Kenya
- There were 11.00 million social media users in Kenya in January 2021.
- The number of social media users in Kenya increased by 2.2 million (+25%) between 2020 and 2021.
- The number of social media users in Kenya was equivalent to 20.2% of the total population in January 2021.
Mobile connections in Kenya
- There were 59.24 million mobile connections in Kenya in January 2021.
- The number of mobile connections in Kenya increased by 5.9 million (+11%) between January 2020 and January 2021.
- The number of mobile connections in Kenya in January 2021 was equivalent to 108.9% of the total population.
Note: many people have more than one mobile connection, so figures for mobile connections may exceed 100% of the total population.
Going forward to establishing your IT business:
- Survey the Customers
Conduct a thorough market research on a particular area, you will need to find out who your consumers are going to be and form a buyer persona, the problems your idea is trying to solve, if there are enough people with the same problem and how much they are willing to pay for the problem to go away thereafter sell the idea to the potential consumers and establish how well the product or service will sell. The idea needs to be the ideal solution the consumers are searching for.
- Build your product/service
The best part of this stage is that it requires no capital at all but will demand your time and or your partner’s time as well. It is an important stage as you will be building the foundation of your company.
You may need to minimize the product to the core features, preferably one or two features that are going to solve the problem most effectively. In order to be able to prioritize the features, you need to target a specific niche that you will be able to penetrate, visualize how the consumer will use the product by creating a storyboard and then eliminate the low priority features.
- Sourcing Talent
Looking for the right team is crucial to the business, from a technological savvy person to an engineer, a proper sales team and a finance guy among others. The team that is chosen should be able to cover all the bases so that your company will be able to effectively service your clients.
- Enter the market with a Minimal Viable Product
It is not always necessary to build the product fully before launching it. There are different strategies that can be used depending on the goal of the test. Examples of
- Smoke test: the goal here is to test user interest. One can build a landing page then send traffic to the page via ads and check how many people sign up.
- Pre-sell: this is where you launch a crowd funding campaign and measure how many people donate. The goal is to gauge user interest and raise funds.
- Concierge: the goal is to create new ideas, generate feedback and collect data about consumers. One performs the services manually by giving clients hands on services without technology.
- Piecemeal MVP: Take technology that has already been built and customize it to perform the necessary functions. The goal is to improve the concept before making a larger investment into product development.
- Attracting Early Adopters
In this stage, you can send just a limited number of users to the application so as to gauge whether or not you are in the right path and the product is performing in the market. This can be done through the following ways;
- Self-promotion: Handing out flyers, word of mouth, using different social media platforms and contacting and forming mutual beneficial partnerships with individuals, organizations and companies that would benefit from your technology.
- Online communities: Assimilate yourself and become an active member in the group by participating in discussions and assisting members with queries such that when you post something about your product or rather your software, people will know who you are and you won’t seem like you are spamming the network.
- Using influencers: just need one person with a large audience to use your application and review it so that they could do the persuading for you.
The most important step is being committed to take the first step and start the IT Company with the necessary legal requirements, documents and certifications.
Starting an IT company in Kenya like every other business in Kenya comes with its myriad of challenges as such you will need to be firm and persevere.
Our Business Registration Fee.
Business registration plus setup cost, Ksh. 50,000 (Kenyans), Ksh. 1, 600, 000 (Foreigners).
Here’s the package to expect from our legal and business service engagements,
We will help you to unwrap your business goals by:
- Identifying the right business structure for your project, i.e, Business Name or Sole Proprietor, Private Limited Company by Shares, Private Limited Company by Guarantee, Limited Liability Partnership, Branch – Foreign Company, NGOs, Saccos and so on;
- Making a business registration application with the Kenyan Government;
- Prepare the correct business templates; Business Plan, Legal Agreements, Human Resource, Finance & Accounting, Sales and Marketing, Production & Operations and, Administration;
- Organize and structure all departments of your business;
- Be more efficient by smoothing business processes;
- Guide your team tasks with standard operating procedures;
- Save a lot of time and boost your productivity;
- Save thousands of money in lawyer fees;
- Grow your business and close great deals; and
- On matters: Negotiation, Mediation, Arbitration and Court Litigation if need be.
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