The verdict in three sentences
In Nairobi, site development is only 40 to 55 % of the real first-year cost of an online store. Adding hosting, payment fees, delivery, product photos, advertising and stock, the realistic 12-month budget runs from KES 250,000 to KES 650,000. The real question is not the site price but the break-even point: how many orders/month to cover costs.
Launch cost, item by item
Here is a 2026 typical budget for a Growth store in Nairobi.
| Item | Year 1 cost (KES) | Nature |
|---|---|---|
| Site development | 120,000 to 300,000 | one-off |
| Hosting + domain | 18,000 to 45,000 | recurring |
| Payment fees (~2 %) | ~2 % of revenue | variable |
| Product photos | 22,000 to 60,000 | one-off |
| Advertising (Meta/Google) | 90,000 to 220,000 | recurring |
| Delivery (subsidised) | 45,000 to 120,000 | variable |
| Initial stock | sector-dependent | one-off |
Advertising is the most underestimated item: with no acquisition budget, even the finest site generates no sales.
Typical budget and break-even
Let us compare three ambition levels over 12 months (excluding stock).
| Scenario | Year 1 budget | Average order | Orders/month to break even |
|---|---|---|---|
| Minimal | KES 250,000 | KES 2,200 | ~28 |
| Balanced | KES 440,000 | KES 3,000 | ~35 |
| Ambitious | KES 650,000 | KES 3,800 | ~42 |
Reading: with a balanced KES 440,000 budget and a KES 3,000 order at 40 % margin, you need about 35 orders/month to cover costs. Beyond that, each order is profit.
Mini case study
Wanjiru, a natural-cosmetics maker in Nairobi, launches her store on a KES 370,000 budget (site 180,000, photos 40,000, ads 120,000, rest misc). Average order KES 2,700, 45 % margin, i.e. KES 1,215 margin/order. Her fixed monthly costs (hosting, ads, payment fees) run ~KES 22,000. Break-even: ~18 orders/month to cover recurring. She hits 45 orders by month 4: the store is profitable and repays setup by month 9.
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FAQ
Is the site price enough to budget a store?
No. The site is only 40 to 55 % of year-1 cost. Forgetting ads, photos and delivery is the most common and costly mistake.
How much for advertising?
Budget at least KES 8,000 to 22,000/month at launch. Without paid acquisition, organic traffic takes 6 to 12 months to build.
What is a typical break-even?
Between 28 and 42 orders/month depending on budget and average order. Track this monthly, not raw revenue.
Should I subsidise delivery?
Partially subsidising (e.g. free above KES 3,500) lifts average order by 15 to 25 % but eats margin: calibrate carefully.
How much are payment fees?
About 2 % of collected revenue. On KES 75,000 of sales/month, that is roughly KES 1,500.
Let's talk about your project. We cost your store end to end and set a realistic break-even point. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
