How To Start A Daycare Business In Kenya

For ‘young’ people, starting your very own business and becoming self employed is the most suitable alternative to the ever growing hard to get 9 to 5 jobs. Starting a business is always the best alternative to the ever elusive jobs.

A survey by the Kenya National Bureau of Statistics (KNBS) revealed that seven (7) million Kenyans are unemployed. An additional figure of over 1.4 million are actively looking for employment. With those figures, it is easy to see why more and more people are looking for alternatives.

Because we know very many business ventures require huge amounts of capital to get started, this new How To series will only show you how to start and execute several small business that require capital from as little as 5,000 Kenyan Shillings. Thus giving you the keys to the kingdom of starting a profitable business with little or no capital.

If you are also just looking for a side hustle to maybe supplement your 9 to 5 or full time job, this is for you.

All that you need to thrive in these businesses besides capital, is good customer service of course, great managerial skills, a suitable business location, and a clear cut vision.

Today’s article will show you how to set up a Daycare business in Kenya. While this not exactly a 5,000 Kenyan Shillings capital business, I am sure you would agree that this is also a very viable option.

As middle income earners become parents while looking for jobs with much better salaries, the need to wean their children as soon as possible continues to grow. In the past the solution was to hire helps from the rural areas. Due to the addition of employees’ benefits which include NHIF deductions, as well as rampant cases of house helps being abusive, the practice of hiring house helps, has seen a sharp decline. This in turn, led to an increase in the demand for Daycares.

While a number of entrepreneurial endeavors need a rather huge capital and to an extent additional investment in infrastructure, setting up a daycare could cost you very little in terms of capital. next to nothing.

Daycares offer parents a chance to leave the children under professional care in their preferred environment. To open a daycare, you have to secure a children friendly environment, facilities and to market your brand

How To Start A Daycare Business In Kenya

How much do you need to start a Daycare? What paperwork, and or equipment are you required to have for your Daycare business in Kenya? Below is everything you will need to kickstart your Daycare business in Kenya:

1. Knowledge in early childhood development. You cannot run a daycare to the best of your abilities, if you know nothing about how to care and nurture infants and younger children. Even if you opt to hire additional hands you as the owner needs to be knowledgeable in early childhood development.
2. A Location. As with most businesses, a good location is one of the major factors that determine whether or not your Daycare will succeed. If you decide to set it up in your home or in a leased building, it is still advisable that you get professional advice on whether or not the premises you choose is suitable to accommodate a childcare facility. A Spacious room can go from as low as 5,000 Kenyan Shillings to 20,000 Kenyan Shillings and even 50,000 Kenyan Shillings. This of course depends on the area that the space is located.
3. Capital. It is advised that you start small, and then gradually expand. With this in mind, you can start your daycare business with 100,000 Kenyan Shillings. This will at least get you started on the basic things you need for your daycare set up.
4. The necessary Licenses. You also need to factor in the acquisition of the necessary legal licenses. You will need a Single Business Permit as well as Fire Safety. Both are given by county governments. A Single Business Permit
5. costs around 15,000 Kenyan Shillings, while the Fire Safety costs around 3,000 Kenyan Shillings. Additionally you can get a Liability Insurance cover to protect your facilities, staff and children as well as.
6. Renovations and Modifications. For this you will need the help of a painter and a carpenter to turn your space into an environment that is child friendly.
7. Furniture like tables, small chairs, sleeping mats, stools and couches.
8. Toy. These include ribbons, dolls, stuffed animals, water colors, paints, plastic blocks, puzzles and action figures.
9. Appliances like Buckets, Cups, 1 or more Microwaves, Plates, Refrigerator, Small Sufurias or Pots.
10. Educational materials like charts and story books.
11. Playground equipment like bouncing castles, second hand car tyres, and trampolines. You can purchase said playground equipment in Kenya from online stores and markets.
12. Make sure you have a list of documents for your clients (the parents) to sign. This will include an acknowledgement that the parents fully understand and accept the policies and procedures of your day care center. These will help safeguard your business and reputation if things don’t go as planned.
13. Employ More hands. No one is an island, you really cannot carry out the daily activities of a daycare on your own. This is why you will need to get more hands on deck. You will need to employ cleaners, cooks, as well as security personnel to help ensure the safety of the children put in your care. Please make sure however, that everyone you employ, has a clean record with no criminal activities in addition of course, to having an extensive knowledge of how to take care of children. Ensure that potential members of your staff, always provide a certificate of good conduct.
14. Know How Much To Charge. To know how much to charge your clients, consider the cost of renting, maintaining the space for your daycare, as well as the purchasing of supplies. Next, factor in the cost of salaries or wages for your employees. After all of that, proceed to see the rates charged by other daycares within your county.
15. Marketing. While setting up your daycare, make sure that you market the business. You can do this by utilizing business cards, flyers, referrals, as well as social media sponsored ads.
16. The next most important asset is trust from parents so that they can entrust you with the noble task of taking care of their children.

Your Expected Earnings And Profit

Some daycares charge parents as much 30,000 Kenyan Shillings per term and per child in some areas of Nairobi. With that estimate, 10 registered children will get you 300,000 Kenyan Shillings per term with is a 3 month period. This will leave you with a very healthy profit margin after expenses have been deducted.

And that is it! All you need to know about starting your very own Daycare.

Is the Daycare business for you? That question, is left for you to think on and answer. This writer’s goal is to open your eyes to the various entrepreneurial opportunities that abound in the country.

Also while the prospects are very promising please have a realistic approach as well. As with any business, there is a chance that you might incur losses. Especially at the beginning.

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