Some
endevours are bound to succeed but others are absolutely
destined to fail. Whether it is because of the high cost of electricity in
Kenya or high cost of inputs, here are some of the most risky businesses to
start in Kenya. These are businesses that will fail long before they are
started. They are high risk businesses that no insurance company will dream of
insuring.
Pesa
Mashinani takes this chance to inform all investors of the ventures they ought
not to invest their money in. Past experiences of investors who have suffered
huge losses is what is shaping this discussion.
1.
Poultry farming
It
started as a get-rich quick business but it was a sector that was heavily
affected by the invisible hands of demand and supply. Many small investors in
Kenya entered this business sector in 2006/2007 due to demand for poultry meat
in many towns in Kenya. Hotels soon experienced a short increase in supply of
poultry and the market price started to fall.
Suppliers
of poultry feeds increased the prices of their products due to the abrupt shoot
in demand for chick mash and related products.
With
the prices of poultry falling in the market and the cost of chicken feeds
rising, many investors soon realized that they made a poor investment decision.
If
you are an investor, don’t even think of investing in poultry farming in 2015 unless
you own your own hotel.
2. Pig farming
The
swine business started also as a get-rich quick business. However, this
business has turned out to be a loss making business. The low returns and losses
suffered in the pig farming sector is largely due to the high cost of feeds and
medication for the pigs.
3.
Trucks for hire
New
investors who are trying to enter the trucks for hire business should invest
their money elsewhere. Trucks for hire business in Kenya is not only expensive
to start but it is also plagued with corruption and fuel siphoning.
Many
drivers will siphon fuel from your trucks and engage the free gear when driving
downhill just to save some more fuel for siphoning.
The
nature of Kenyan drivers (those who will work for you and those in the road)
makes this business to be a risky business venture. The business will hit a
snag the day the truck driver will cause an accident and the insurance companies
turn your claims for compensation into long court battles.
The
only successful investors who are in this sector have the time to closely
monitor their trucks and drivers. Some of the investors are drivers themselves.
Labels: Sticky