The verdict in three sentences
An online store in Nairobi comes together in 3 to 5 weeks for KES 60,000 to 250,000, built around M-Pesa Till/Paybill with cash on delivery still popular. The local average order value (KES 2,000 – 6,000) and controlled delivery via Sendy/Glovo decide your profitability. A starter catalogue of 20 to 50 well-photographed products is plenty to begin.
The budget line by line
Here are 2026 ballpark figures for a Nairobi launch, from turnkey template to custom build.
| Item | Low end | High end |
|---|---|---|
| Store development | KES 60,000 | KES 250,000 |
| Domain .co.ke / .com | KES 1,500/yr | KES 3,500/yr |
| Hosting 1 year | KES 10,000 | KES 40,000 |
| M-Pesa (Till/Paybill) setup | included | KES 25,000 |
| Catalogue 30 products (photos) | KES 15,000 | KES 35,000 |
| Launch marketing | KES 15,000 | KES 50,000 |
| Total year 1 | ~KES 100,000 | ~KES 380,000 |
Most merchants start around KES 120,000 – 180,000, plenty for a fashion, cosmetics or local-produce catalogue.
Payments and delivery in Kenya
In Kenya, M-Pesa dominates, with cash on delivery still common. Offer M-Pesa plus a COD option.
| Method / route | Indicative 2026 fees | Time |
|---|---|---|
| M-Pesa Till/Paybill | 0 – 0.5% (buyer pays) | Instant |
| Card Visa/Mastercard | 2.9 – 3.5% | T+1 |
| Intra-Nairobi delivery | KES 200 – 500 | Same/next day |
| Nairobi outskirts | KES 400 – 900 | 24 – 48h |
| Sendy / Glovo courier | KES 250 – 600 | Same day |
| Cash on delivery | +KES 100 – 300 | on handover |
Offer free delivery above a threshold (e.g. KES 3,500 intra-Nairobi) to lift average order value without eroding margin.
Starter catalogue and marketing
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Start with 20 to 50 products with real photos and clear descriptions. For acquisition, Facebook and Instagram remain the most cost-effective channels: a budget of KES 15,000 – 25,000 in month one lets you test 2–3 audiences and spot your best-sellers before scaling.
Mini case study
Wanjiru, a natural-cosmetics seller in Nairobi, launches with KES 140,000. Average order: KES 3,000, net margin 45%, i.e. KES 1,350 per sale. Fixed monthly costs: KES 18,000 (hosting, ads, delivery). Break-even: 18,000 / 1,350 ≈ 14 sales/month. At 40 sales/month, she clears ~KES 54,000 in net margin and pays back her launch in about 4 months.
FAQ
How long until the first sale? With a ready catalogue and KES 15,000 in ads, expect 2 to 4 weeks after going live for the first steady orders.
M-Pesa Till or Paybill? A Till is simpler for retail checkout; Paybill suits invoicing and account references. Many stores set up both; either integrates cleanly at checkout.
How many products to start? Between 20 and 50 well-presented SKUs. Too many dilutes your photos and marketing budget; focus on a few best-sellers.
Is cash on delivery worth it? Yes for new buyers who don't yet trust the brand. Add a small KES 100 – 300 fee and confirm orders by phone to cut no-shows.
Monthly marketing budget after launch? Reinvest 10 to 15% of revenue into acquisition once your best-sellers are identified.
Let's talk about your project. We'll set up your Nairobi store with M-Pesa Till/Paybill and reliable Sendy/Glovo delivery, ready to sell. 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.