How to start an online store in Kenya (2026 guide)

This guide covers the eight steps to starting an online store in Kenya in 2026, from choosing what to sell to getting your first orders. Work through them in order and you can have a store taking payments within a week or two.

Step 1: Choose your products and your buyer

Start with products you already sell or understand well. Pick a range you can keep in stock and deliver reliably, because running out after a customer has paid is the quickest way to lose their trust.

Next, describe your typical buyer: where they live, how much they usually spend and how they prefer to pay. A buyer in Westlands spending KES 15,000 on a handbag expects different delivery and service from a student in Eldoret buying a KES 800 phone case.

Then calculate your margin. Add up the product cost, packaging, payment charges and any delivery you will cover. If there is little profit left, raise your prices or change your range before you launch.

Step 2: Register your business

You can sell under your own name, but a registered business can open a business bank account, apply for a business M-Pesa till and earns more trust from buyers.

Business name or limited company

Register a business name on eCitizen through the Business Registration Service if you are a sole trader. It usually takes a few days. Choose a private limited company, also registered on eCitizen, if you have partners, plan to raise money or want to keep your personal assets separate from the business.

KRA PIN and business permit

Apply for a KRA PIN on the iTax portal. It is free. If you register a company, the company needs its own PIN too. Then apply to your county government for a business permit. In Nairobi this is the Unified Business Permit.

Fees and documents change, so check eCitizen and your county's website before you apply.

Step 3: Register for the right taxes

Turnover Tax applies if your gross sales are between KES 1 million and KES 25 million a year. It is 1.5% of gross sales and you file it every month.

VAT registration is compulsory once your taxable sales pass KES 5 million in any 12 months. You then charge 16% VAT on most goods.

eTIMS is KRA's electronic invoicing system. Issue your invoices through it. Business customers will ask for eTIMS invoices so they can claim their expenses.

Tax rules change with each Finance Act, so confirm what applies to you with KRA or an accountant before you file.

Step 4: Set up payments

Set up M-Pesa first, since most Kenyan buyers will expect to pay with it.

A Lipa na M-Pesa Till (Buy Goods) is the simplest option and suits most small shops. A Paybill lets buyers enter an account number, such as their order number, which makes it easier to match payments to orders as you grow.

A payment gateway such as Pesapal or Paystack lets buyers pay by M-Pesa or card on a secure page and confirms each payment against its order automatically. This saves you checking SMS messages to see who has paid.

Offer cash on delivery if your buyers expect it, especially for first orders. It increases sales but also failed deliveries, so follow the advice in Step 5. Add bank transfer for large orders and business customers.

Make sure every payment goes straight into your own account, and keep business and personal money separate from your first sale.

Step 5: Plan delivery

Choose who delivers

Use your own rider, a motorbike delivery app or a courier such as G4S or Fargo Courier. For upcountry towns, Posta Kenya and matatu sacco parcel services are affordable. Pickup points such as Pick Up Mtaani let buyers collect near home at a lower cost. Start with the areas you can serve reliably.

Set clear delivery options

Give each option a name, a delivery time and a price, for example "Nairobi CBD, same day" and "Upcountry, 2 to 3 days". Consider free delivery above a set order value to encourage bigger orders. If you have customers abroad, add delivery to specific countries through a courier, priced separately.

Reduce cash on delivery failures

Confirm every order by phone or WhatsApp before it ships. Ask for a small M-Pesa deposit on large or first orders. Keep a record of numbers that have refused deliveries before.

Step 6: Build your store

Selling only on WhatsApp and Instagram works when you have a few orders a day. Beyond that, sending photos, tracking stock and matching payments by hand takes up most of your time. Global store builders often bill in dollars, take a fee on every sale and treat M-Pesa as an add-on. A store builder made for Kenya should include M-Pesa and cash on delivery, show prices in shillings and support local delivery.

Whichever you choose, set up these essentials before you launch.

Product photos. Take clear photos on a plain background, from several angles. Good photos sell more than long descriptions.

Product descriptions. State sizes, materials and what comes in the box.

Stock counts. Keep them accurate so you never sell something you do not have.

Your own domain. A domain such as yourshop.co.ke looks professional and is easy to share.

Store policies. Publish your delivery, returns and refund policies. Buyers read them before paying a shop they do not know.

Step 7: Price your products

Calculate each price from your costs: product cost, plus packaging, plus payment charges, plus any delivery you absorb, plus your profit. Then compare it with similar shops. If you charge more, your photos, delivery and service need to justify it. If you charge much less, check that you are not underpricing.

Use discount codes for your launch, holidays such as Jamhuri Day and Black Friday, and to win back past customers. Give every code an end date and a usage limit.

Step 8: Get your first customers

Share your store link on your WhatsApp status, in groups you belong to and with past customers. They are the most likely to buy first.

Post regularly where your buyers spend time. For fashion, beauty, food and homeware, that usually means Instagram and TikTok. Short videos of products in use tend to perform better than studio photos.

Reply to messages quickly. Buyers often ask several shops at once and order from whoever answers first. After each sale, send a thank-you message with a small discount on the next order to encourage repeat purchases.

When you are ready to pay for marketing, try smaller creators whose followers match your buyers. They often bring better results for the money than big names.

Protect your customers' data

Kenya's Data Protection Act covers the names, phone numbers and addresses buyers give you. Collect only what you need for delivery, store it securely and never share it without permission. Depending on your size, you may need to register with the Office of the Data Protection Commissioner.

Your launch checklist

Before you launch, make sure you have chosen five to ten products, registered your business name and KRA PIN, set up an M-Pesa till, decided your delivery areas and prices, and added your photos and policies to your store. Then share your link with everyone you know and start taking orders.

Staaf gives you an online store with M-Pesa, card, bank transfer and cash on delivery, delivery options for Kenya and abroad, discount codes and one inbox for WhatsApp and Instagram. It costs KES 4,999 a month with no cut of your sales, and your first month is free. Start your free trial.