cyber cafe business plan kenya

How to Start a Cyber Cafe Business in Kenya

Starting a cyber cafe business is a profitable venture in Kenya . The demand for information has been on the rise with the rise in technology . This has necessitated the establishment of cyber cafes where people can browse the internet, type, print, and photocopy documents. Cyber cafe services in Kenya are increasingly in demand with the increase in business activities. This is what you need to start a cyber cafe business in Kenya.

Write a Cyber Cafe Business Plan

You need to have a business plan to start a cyber cafe business in Kenya. A good cyber cafe business plan should have startup costs, sources of business funding, risks and strengths of the venture, market research findings and cash flow projections.

Equipment Needed to Start a Cyber Cafe in Kenya

The following are some of cyber cafe requirements and their respective costs.

• 5 Computers - Ksh 75,000
• Printer and scanner - Ksh 25,000
• Photocopier - Ksh 60,000
• Internet - Ksh 3,000
• Cabling - Ksh 2,000
• Furniture - Ksh 15,000
• Business permits - Ksh 15,000 
• Rent - Ksh 20,000
• Electricity - Ksh 1,000
• Staff Salary - Ksh 15,000

Some of the computer brands that are best suited for a cyber cafe include HP and Dell. The best laptop is HP since it is durable and has most features necessary for a cyber business. The best printer for cyber cafe is Epson brand. You can get a three in one printer for document printing, scanning and CD printing services. The best printer for internet cafe Kyocera brand, Epson and Canon.

You also need cyber cafe software to track internet usage by customers. You can charge clients depending on the time they have spent accessing internet. You can use CyberCafePro free software. Alternatively, you can use MyCyberCafe software. 

How Much Does it Cost to Start a Cyber Cafe in Kenya?

The size of the business will determine the amount of startup capital you need. However, the best way to go about it is to start small and grow your business with time.

The cost of starting a cyber cafe in Kenya is around Ksh 250,000. However, cyber cafe opening cost will depend with business location and its size. 

Read also: How to start a chemist retail business in Kenya.

Factors to Consider when Starting an Internet cafe Business in Kenya

Before you can set up your business, there are things that you need to consider to ensure that you get the best results.

1. Location

Make sure to set up your internet and printing business in an area with institutions like schools that require the services you are offering. For instance, you can set up your business near a college, university, hospital or a banking hall. Such institutions will require people to use the internet and print documents.

You also need to realize that cyber cafes work well in towns and not in rural areas. It is because there is higher demand for information in urban areas due to the presence of many offices and businesses, compared to rural areas. Therefore, make sure to set up your cyber business in a busy area. 

2. Licenses and Business Permits

To start an internet cafe in Kenya, you need to have business permits and licenses from the relevant authorities. It is easy to get cyber cafe business licenses. You can visit your County Council offices and pay for a business permit.

The officials will then visit your premises to inspect your business. Licenses for printing and internet business will cost you between Ksh 5,000 to Ksh 10,000 annually. The price vary from one county to the other.

You need county council single business permit, county council advertising and signage permit and music Copyright Society of Kenya (MCSK) license to run your cyber cafe business efficiently.

Also read: How to start a bakery business in Kenya.

3. Partition Your Workstation

An excellent internet cafe requires proper partitioning. You will also need some shelves where you can keep photocopy papers, envelopes and other stationery. Partitioning is important and helps you to save on space and ensure privacy for the cyber attendant.   

You can buy desks that can accommodate four users. You also need a place where the cyber cafe attendant will be sitting and a place for the server computer, printer and photocopier. Make sure your cyber cafe furniture is comfortable for your customers. 

4. Internet Connectivity

You need to do thorough research on the most economical internet service provider you will be using. There are many internet providers in Kenya like Safaricom, Telcom and Airtel. One of the limitations that cyber cafe businesses face is the lack of reliable internet connectivity. You must choose the best internet service provider with strong connectivity in your business location.

Also read: How to start a cosmetics business in Kenya.

5.  Computers and other Equipment

You must decide whether to buy a new or second hand photocopier, computers and printers. If you choose to buy second-hand equipment, make sure that they are in good condition. Avoid buying equipment that will require repairs from time to time. It will make your cost of operation expensive.

6. Hiring Employees

You need to hire someone responsible, trustworthy and one with knowledge about cyber cafe operations. Most cyber cafe business owners face challenges by employing people who steal from them. You need to employ a person who can remit day to day earnings of your business. 

7. Marketing 

Finally, once you have launched your internet cafe business, you need to advertise it. You can use posters, business cards and customer referrals. Soon, you will start attracting many customers to your business. Make sure to expand your business as your customer base grows.  

List of Cyber Services in Kenya

The services you will be offering should be listed in your business plan. Some of the cyber cafe services list you can offer include:

• Typing and printing
• Photocopying and scanning
• Browsing internet
• Selling stationery like envelopes  
• Laminating documents
• Online applications
• Graphic services

Is Cyber Cafe Business Profitable in Kenya?  

Starting an internet cafe business in Kenya is profitable if it is situated in an area with institutions and high population. Its profitability also depends with the cyber services you are offering.

For instance, if you are offering internet, printing, photocopying and scanning services, you will make more money than someone offering internet services only. If you are providing all those services, you can make Ksh 5,000 in a good day and Ksh 1,500 in a bad day.

It implies that the business's revenue is between Ksh 30,000 and Ksh 60,000 in a month. After deducting business expenses, cyber cafe business profit is over Ksh 15,000. If you know how to start an internet cafe business, it is a profitable venture. 

Read more: How to start a welding business in Kenya.

Summary of How to Start an Internet Cafe

To start internet cafe business in Kenya, you need to know how to operate computers and have the technical ideas. You can also hire a person to operate one for you but make sure you are there to collect money for services. With that, I hope you now know how to start cyber cafe business. 

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All you need to know about Kenya

Starting a Cyber Cafe Business in Kenya

By Catherine Mungai

Do you want to start a cyber cafe business in Kenya? This article is for you.

Even though many people now own laptops, smartphones, tablets and desktop computers, it is still profitable to run a cyber cafe business in Kenya. Like any other business, there are certain factors to consider before starting a cyber cafe business.

Important factors to consider when starting a cyber cafe business in Kenya

1) Location

Location has always been an important element of setting up a cyber cafe business. Your success for this business depends on how well your cyber cafe is positioned to be found. You should consider a place with a good flow of customers such as near learning institutions, busy streets especially on the ground floor, banks and public government facilities, and generally highly populated residential areas. The location should also have sufficient space for computers, furniture and your staff.

You will need sufficient capital to start your cyber cafe business. Here are sample capital requirements for a cyber cafe business having 5 computers. That is 1 computer for your staff and 4 computers for your clients.

Depending of factors such as location and cost of equipment you will be purchasing, the startup cost will generally be a figure between Kshs.120,000 and Kshs.250,000

3) Licensing and Regulations

You will need certain licenses to run your cyber cafe business. The licenses you will require are:

• A Single Business Permit
• An Advertising Permit
• A License from the Music Copyright Society of Kenya if you will be playing music in your cyber cafe.

Note: This licenses are included in the capital requirements under licensing.

4) Competition

A cyber cafe business in Kenya is highly competitive since people now have wifi in their homes, smartphones, laptops and desktop computers. When choosing a location look for an area with few competitors or no competitors at all. You should also offer more services in your cyber cafe e.g. Binding, A stall for selling snacks and drinks, Filing Kra returns, applying driving licenses for your customers, among other common applications, better customer support, provide headphones and ensure your business is always looking clean and superb among others.

How Profitable is a Cyber Cafe Business in Kenya?

To gain a market place in this business, you should provide a little more than just internet. Let it be games or graphic design services or anything related to internet that would attract the people. The environment should be pleasing and the computers should be free from viruses and spam. Generally you should be able to earn atleast Kshs.2,500 per day. As your business gets established you will be able to earn upto Kshs.6,000 per day which is a common figure in some well established cyber cafes. Hence your monthly earnings will range from Kshs. 70,000 to Kshs.180,000.

Important tips for a Cyber Cafe Business in Kenya

• Add all additional services like scanning, printing, burning music and movies to flash disks, binding, selling snacks and drinks among others.
• Sell small hardware products and accessories like printing paper, mouse, cd’s, flash disks, stationery items, usb cables and so on.
• Add computer gaming services to get more youngsters into your cyber. Having popular computer games like Need for Speed, GTA, Fifa will increase the footprint of youngsters in your cyber cafe. For gaming services focus on getting multiplayer games especially and have computer gaming pads.
• Attract a lot of new customers by providing discounts, say once weekly and on holidays.

An Outgoing girl based in Nairobi, Kenya who loves life, writing and reading.

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How to Start and Run a Successful Cybercafé Business in Kenya

A dive into all how to start a cyber café business in kenya, capital requirements, and possible obstacles you may face in the venture..

Starting a cybercafé in Kenya, is a relatively demanding task, especially if you do not have the correct information about the procedure. This article will therefore dive into all the essential aspects, covering how to start a cyber café business in Kenya, capital requirements, and possible obstacles that you may face in the venture.

Stick to the end as we dive in…

#A. Definition of a Cybercafé

In very simple words, a cybercafé is a business which allows people to have access to the internet. Well, with the technological advancements that have been made in the 21 st century, cybercafés have started offering wider arrays of services such as:

• Printing, scanning, and photocopying services
• Video conferences and online meetings
• KRA returns filing services
• Renewal of driving license service
• Multimedia services – These include graphics design, video editing, audio recording etc.
• Device charging stations
• Gaming stations and virtual reality services

#B. Capital required to start a cybercafe business in Kenya

Once you decide to start a cyber business in Kenya, you must have enough capital to compete favourably with other businesses around your area. Typically, a cyber café will need approximately Ksh.200,000 to Ksh.300,000.

This startup cost will cover all other expenses that have been covered later in this post. These expenses will include licenses, location, equipment and miscellaneous costs.

Before diving into the cost breakdown and analysis, you will first need to do market research, as expounded below:

#C. Market Research and Planning

Once you start any business in Kenya, you must do proper market research. Market research will involve you answering a few questions:

• What is the population of the area you intend to locate your business?
• What is the level of technological penetration in the area?
• Are people exposed to technology to require your services?
• What are the types of institutions or companies located in the area?

After doing market research, you should focus on understanding how big your competition is. If other cyber cafés are large and offer a wide array of services, you will have to pull up your socks and provide either the same or more services.

#D. Location Selection and its Importance

Selecting your location goes hand in hand with what you find out after doing market research.

However, to cut a long story short, a cyber café will do well in a place that is serene but with a lot of people and movement. For example, in universities and colleges, cybers do perfectly as compared to rural areas that may have a lot of people but little movement.

Urban and suburban areas are good areas to locate your cyber café business in Kenya.

#E. Creating a Business Plan

Business plans are not mandatory but prove very efficient to the entrepreneur seeking to start a large enterprise.

In a situation where you want to venture into a bigger cyber café that may need financing from traditional lending institutions, you will need to work on a business plan or hire a professional to work for you at an agreed fee.

Statistics have shown that businesses that take time to design their business plans have an easier time combating competition, anticipating obstacles and managing finances efficiently. This, therefore, translates to better income as compared to businesses lacking business plans.  

#F. Legal and Regulatory Requirements

Business registration and licensing are done via the e-Citizen portal in Kenya. According to Kenyan law, all businesses should be registered under the registrar of companies and be tax compliant.

Therefore, to keep government officials out of your business premises, please make sure you register your business and get a permit from your county government.

The fees required vary from county to county but generally, registering a business name costs around Ksh.950, whereas getting a company business permit may cost you Ksh.20,000 or more.

You may be required to pay more fees for licenses such as the MCSK ( Music Copyright Society of Kenya ) if you intend to play music in your cyber or KFCB ( Kenya Films Classification Board ) if you choose to have a movie shop too.

#G. Infrastructure and Equipment

An attractive cyber café will always attract more customers than a poorly designed one. Further, once you invest in the right equipment, your rate of conversion will be more than your competition.

Therefore, as you design and select a theme for your cyber, you must invest in both quantity and quality.

If you choose to offer services such as graphics design, video editing etc., you will have to invest in computers with proper specifications and purchase all the necessary software such as:

• Adobe Photoshop
• Adobe Premier pro
• Adobe Illustrator
• After Effects
• Firefly etc.

–Electronics

For electronic equipment, here is the breakdown of what you will need.

Please note that you can modify the quantity or quality of what has been tabulated below to meet your capital investment.

Attention: You can buy the above electronic equipment from buytec.co.ke

— Internal infrastructure

You will also need furniture for your business and a good theme. Consider investing in what we have listed in the table below.

— Theme & design

For your cyber theme and aesthetics, consider the following:

#H. Staffing and Training

Once your cyber is up and running, you may need to employ staff who will help you run your enterprise.

Staffing is a critical process that may make or break your cyber café business in Kenya.

Your employees will be interacting directly with your clients and therefore, you must ensure that you train your staff accordingly.

Apart from customer relations, your staff will also need to learn basic computer skills so as serve your clients appropriately.

Now that you have understood how to start and run a successful cyber café business in Kenya, all you have to do is to implement the strategies laid out in this post and you will be on the right track.

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Cyber cafe business plan kenya pdf

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Want To Start a Cyber Cafe Business In Kenya?

Cyber business plan kenya instant download.

What Is An Internet Cafe Or Cyber Cafe?

An іntеrnеt саfе (the mоѕt соmmоn tеrm uѕеd, but саn also be rеfеrrеd tо as a суbеr cafe) is a place оf buѕіnеѕѕ thаt provides іntеrnеt ассеѕѕ along with fооd аnd drink.

Grab This genuine Cybercafe Business Plan Kenya Pdf and Start Your Cyber Cafe Business In Kenya Today.

Dеѕріtе сhеареr соmрutеrѕ and wireless іntеrnеt mоdеmѕ flооdіng the market, a sizeable number оf сuѕtоmеrѕ аrе still trооріng іntо суbеr саfеѕ tо do mоrе thаn juѕt сhесkіng emails аnd ѕurfіng thе internet.

Kеnуа іѕ making big paces іn thе rіght direction. Thе masses аrе hungrу fоr іnfоrmаtіоn, but resource сеntеrѕ are іnаdеԛuаtе.

Hеrе іѕ whеrе you саn come іn the cyber business.

Oреnіng a суbеr café іѕ among the brightest buѕіnеѕѕ іdеаѕ уоu саn thіnk оf іn 2020. Nоwаdауѕ, information саn be accessed thrоugh a Smartphone.

Kеnуа leads with mobile penetration. Almоѕt all аdultѕ іn Kеnуа hаvе рhоnеѕ wіth around 40% оwnіng a Smartphone.

Whаt dоеѕ this tell уоu? Thеrе is an appetite fоr information which рrоduсеѕ аn орроrtunіtу thаt уоu can tap in.

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cyber business plan kenya . (4 Steps) How to Start a Cyber Café Business In Kenya.

4 Steps on how to start your successful cyber business in Kenya: 

Stер 1: Chооѕе a Gооd Lосаtіоn.

Idеаllу, gо for a рlасе wіth hіgh fооt trаffіс оf mоѕtlу young ѕсhоlаrѕ and professionals. Thіnk оf an аrеа near аn upcoming or existing unіvеrѕіtу оr соllеgе. Altеrnаtіvеlу, gо fоr thе hіgh-еnd mаrkеt іn thе CBDs оf major tоwnѕ.

Step 2: Buіld the Wоrkѕtаtіоn.

A small саfе wоuld require оnе workstation раrtіtіоnеd tо create еxсluѕіvе booths fоr uр tо 4 сlіеnt соmрutеrѕ. In addition, a ѕmаll management bооth wіth a few dіѕрlау ѕhеlvеѕ (for ѕnасkѕ, еnvеlореѕ, flash dіѕkѕ and оthеr mеrсhаndіѕе), ѕрасе for the mаіn соmрutеr and ѕрасе fоr a рrіntеr/рhоtосоріеr wоuld аlѕо be required.

Step 3: Get Licenses. 

In оrdеr tо ѕtаrt a cyber cafe іn Kеnуа, you nееd 3 mandatory lісеnѕеѕ. Thеѕе аrе:

(1)County Cоunсіl Single Business Pеrmіt

All 47 соuntіеѕ in Kеnуа require уоu tо pay for thіѕ license bеfоrе you ореn уоur buѕіnеѕѕ. Thе соѕt mау vаrу frоm county tо соuntу with Kаjіаdо аvеrаgіng at Ksh5,000 – Kѕh15,000 per уеаr аnd Nаіrоbі аt Ksh20,000 – Kѕh35,000.

(2)Cоuntу Council Outdооr Advеrtіѕіng and Sіgnаgе Permit

Some соuntу governments (lіkе Nаіrоbі, Mombasa and Kіѕumu) require уоu tо pay a реrmіt fоr оutdооr mаrkеtіng іf уоu’rе going to рut a ѕіgn-bоаrd tо аttrасt customers to your business.

(3)Muѕіс Copyright Sосіеtу of Kenya (MCSK) Lісеnѕе

If уоu wіll be playing muѕіс іn your cafe, thеn this lісеnѕе іѕ a muѕt-hаvе. Otherwise, you саn dеѕіѕt frоm playing аnу kіnd оf muѕіс tо ѕаvе on соѕt (the trаdе-оff bеіng you mау nоt аttrасt mаnу уоung customers).

Stер 4: Aѕѕеmblе Yоur Equipment.

Lаѕtlу, brіng уоur mасhіnеѕ. Each computer ѕhоuld hаvе a lеgіtіmаtе Oреrаtіng Sуѕtеm ѕоftwаrе (іf уоu can’t afford соруrіghtеd Microsoft ѕоftwаrе gо fоr ореn ѕоurсе ѕоftwаrе оr Lіnux). Lіnk up with a cost-friendly іntеrnеt ѕеrvісе рrоvіdеr. Oh, and dіd I mеntіоn you nееd a ѕоftwаrе tо track computer uѕаgе іn оrdеr tо charge сlіеntѕ ассоrdіnglу? NOW, you аrе ready tо start.

Thе Secret tо Grоwіng Yоur Cуbеr Cаfе аgаіnѕt All Odds.

The secret tо ѕuссееdіng in thіѕ business lіеѕ in dіvеrѕіfісаtіоn. Gоnе аrе thе days when customers ѕееkіng іntеrnеt services wеrе thе backbone оf cyber саfе fіrmѕ. Cоnѕіdеr аddіng a wіdе hоѕt оf ѕеrvісеѕ tо уоur суbеr іn order tо аttrасt mаnу wаlk-іn сuѕtоmеrѕ. Some еxаmрlеѕ оf these add-on buѕіnеѕѕеѕ іnсludе:

• Mоbіlе money agency оutlеt (M-Pеѕа, Aіrtеl Money, Eԛuіtу,KCB and Cоореrаtіvе Bаnk аgеnсіеѕ dоn’t dіѕарроіnt).
• Video gаmеѕ оutlеt
• Tуріng аnd proof-reading ѕеrvісеѕ
• Inѕtаnt раѕѕроrt рhоtо taking аnd рrіntіng ѕеrvісеѕ
• Printing іmаgеѕ frоm сlіеntѕ mobile рhоnеѕ аnd mеmоrу cards
• Phоtосору ѕеrvісеѕ
• Snacks аnd soft-drinks
• Grарhіс dеѕіgn аnd рrіntіng of рrоmоtіоnаl mаtеrіаlѕ
• IT ѕеrvісеѕ
• Cоmрutеr training services (раrtісulаrlу іn thе rurаl аrеаѕ) In аddіtіоn, уоu can vеnturе іntо оnlіnе business. Fоr еxаmрlе уоu can run уоur eCommerce ѕtоrе uѕіng уоur cyber саfе аѕ уоur physical address.

A wеll run суbеr саfе wіth аt least 4 computers аnd аn added ѕеrvісе like M-pesa, graphic dеѕіgn, wеb-dеѕіgn, еCоmmеrсе, photocopy ѕеrvісеѕ еtс can rаkе іn up to Kѕh750,000 реr уеаr.

Sо fоrgеt аbоut the mуth thаt суbеr саfеѕ “dоn’t mаkе money nowadays”. Thе ѕесrеt tо ѕuссееdіng іn any buѕіnеѕѕ lіеѕ іn innovation. Arе уоu rеаdу? source

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The Cost of Starting a Cyber Café Business in Kenya 2021

More than ever before, between 2015 and 2017 the cyber cafe business seemed to be on its deathbed. The wide adaptation of smart phones, and generally phones that could access the internet almost ground the business to a halt. Prices of laptops and desktop were possibly at their lowest making thus becoming accessible to more people. Not to mention the number of cyber cafes had risen such that the market was almost getting saturated.  In a survey we conducted in 2017 within Nairobi the number of cyber cafes closing down was almost the same as those opening. The number of cyber cafes advertised for sale in the newspapers averaged six per week, which was a relatively high figure compared to the previous years. Revenue was going down with the average revenue per user reducing significantly.

Before the mass adaptation of internet enabled phone, and the reduction of data charges, a major reason consumers visited cyber cafes was to check email. With the new phones consumers could easily check email, search and visit other websites from the comfort of their palms.  Visits to the cyber cafes were now largely to print, watch videos, visit data heavy websites and those that are were not mobile friendly. The other major draw to the cyber cafes was to use services like printing and download large files.

However since 2015 cyber cafes have continuously gotten a shot in the arm. One of the key drivers being the shift of key government services from manual paper work to electronic; the so called e-government. This has not only changed the way consumer’s access government services, but how they use the internet.

Colleges: The explosion of colleges has also given the cyber cafes a lifeline. Students use cyber cafés to prepare their projects. Partially typing but largely fine tuning printing and binding. Cyber cafes within a reasonable distant of colleges have survived without much effort.

Gambling: The coming into the market of various gambling services and what is described as the ‘gambling craze’ has drawn many to cyber cafes. Among the heavy users of cyber cafes are gamblers analyzing different stakes and placing bets. Though it’s possible to do the same through the phone, computers are more robust than the former. There are now customers who visit cyber cafes every day to place bets, spending an average of 40 minutes per session.

Devolution of Cyber Cafes: All the above trends have also led to the devolving of cyber cafes. Unlike a while ago when cyber cafes were only found in major towns, cyber have moved to estates, per urban and rural towns. Now it’s common to find three computer cyber cafes in small rural towns which for years didn’t have any internet services, and where one would not have imagined that such a business would survive let alone thrive.

Shrinking of Cyber Café Floor Space: Related to this is the shrinking of individual cyber cafes. Gone are the days of 100 plus computers cyber cafes, and in its stead are midsized cafes with less than thirty computers. Although there are a few of the large ones most cyber cafes have 5 to 20 computers. This can be attributed to the economics of the business.  In urban areas, such as Nairobi CBD, the rent for space to set up a 100 plus cyber café would not make it a feasible venture. Such spaces have become competitive due to the expansion of colleges, and “dining hall “kind of hotels. These enjoy higher margins when compared to cyber cafes and thus are more than willing to pay more in rent.

Average Capital Costs

Disclaimer: The capital breakdown below is sourced from recent surveys and may be subjected to market adjustments.

Starting a cyber café business is highly capital intensive and requires critical research and proper case studies to be conducted. The Total capital required will vary based on the scale & market of the venture.

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