How to Start Internet Service Provision Business in Kenya (2024 Edition)

Are you interested in knowing how to start a Wi-Fi business in Kenya and make good money? Are you asking yourself if the Wi-Fi business is profitable? Or do you plan to start an Internet Service Provision business in Kenya but you don’t know where to start?

Sit back relax, and take a pen and paper, Let us dive deeper into understanding the internet resale business and answer all your questions.

If in case I have not covered all the questions you were having, please feel free to comment below and I will get back to you. I previously did this business and I will be guiding you on how you can start and grow.

Who is an internet service provider?

An internet service provider is a company that lets you access the internet at your home or office and charges a monthly subscription.

ISPs can provide this access through multiple means, including dial-up, DSL, cable, wireless and fiber-optic connections.

Some of the big ISPs in Kenya are Safaricom, Zuku, Telkom, etc. Think of it like DSTV or GoTv instead of providing you with TV channels, you get connected to the internet.

The Wi-Fi business is very profitable. You can make more than 100,000/= selling the internet in Kenya. 

Becoming an ISP provider allows you to become self-employed and better your financial state. To become an ISP you will need dedication, hard work, and good customer support, and within no time you will be rich.

Why Start an Internet Service Provision Business in Kenya

1. Be Your Boss:

Starting your Internet Service Provision (ISP) business in Kenya means you’re in charge. No more working for someone else – you call the shots. This independence gives you the freedom to steer your business the way you want.

2. Lucrative Business Model:

Let’s talk money. Imagine having 50 customers, each paying around Ksh 2,500. After expenses, you could be looking at a profit of about Ksh 63,500. The numbers add up, showing that an ISP business can be quite profitable.

3. Growing Demand for Home Internet:

More people want the internet at home. Whether it’s for work or entertainment, the demand is going up. Being an ISP now is like being in the right place at the right time. Home internet is a must-have, and you can be the one providing it.

4. Unlimited Growth Potential:

Think big. There’s no limit to how much you can grow your ISP business. The demand for the internet keeps growing, and you can even expand into related services like home security. The sky’s the limit – it’s all up to you.

5. Easy Management:

Running an ISP business is not as complicated as you might think. It’s designed to be easy to manage, so you can focus on the important stuff like growing your business. Less hassle, more opportunity to make your business thrive.

6. Diversify Your Earnings:

Don’t just stop at the internet. You can offer more services like home security. This means more ways to make money and serve your customers. Diversifying lets you stay flexible and tap into different revenue streams.

How to Sell Wi-Fi / Internet in Kenya

To start an internet service provision business in Kenya, you have 2 options of starting:

1. Start Small – There is an option of starting small and growing with the demand. This option has little risk and you will need very minimal cash. If you are interested in starting small, head over to an extensive article covering that. Click here – How to start making money at home selling internet in Kenya
2. Start Big – You can choose to start big (I advise the former). When we started this business in 2015 as a side hustle, we knew nothing about what it takes to become an ISP but we were ready to learn, determined, and had a vision of growth. By 2021 we had over 400 clients and the rewards were far much better than being employed. 

Essential Steps to Launching Your Internet Sales Business in Kenya

1. Market Research

a. Understanding the Kenyan Market: First the most important thing is understanding your target market. Answer basic questions like why are you interested in starting the business in that particular area, what loophole will you be fixing, and why should clients choose you.

Submerge yourself in proper market research, it’s crucial for your next steps. Take time and make sure the foundation is strong before starting an internet service supply in the area.

b. Competition Research: Google existing companies offering internet service provision in your target area. Check their pricing, vision, what they do best, and what their clients are saying. 

Note down what they do better, and find ways to make it best. Check their drawbacks and create solutions to counter such cases. Here you learn and if you do it correctly, you will start the ISP business in Kenya at an advanced stage.

Competitor research is about noting what’s being done already and finding/creating solutions to make it better. It’s not about cut-throat competition.

If the competition is too much or there are many resellers and brokers in the area. Consider the best way forward.

Focus on reliable internet service suppliers. As you grow it’s important to consider a backup internet supplier so that in case one has an issue you have an alternative.

The same applies to electricity backup. Invest in a good solar backup to make sure clients receive an uninterrupted internet connection.  

2. Legal and Regulatory Compliance:

a. Business Registration:  As a business in Kenya you will need to register a business name at e-Citizen. 

Log in or create an account using either your email address or ID number. Afterward, click on Register a Business. Fill in the appropriate details and apply. 

The next step will be registering a company or in this case, I will cover a business name. 

b. Office Space: Here there is no one-size-fits-all idea. Everyone has varying preferences. Focus on strategic place. Getting a space at a big building is a plus since you can try converting clients from there. 

The office is important since it builds trust and shows clients that you exist.  

c. Licencing Compliance: Communications Authority of Kenya You have to be compliant with. You will need an ISP certificate and a Tier 2 or 3.

The Communications Authority of Kenya (CA) is mandated to license all communications systems and services in the country. In executing this and its other responsibilities, CA is guided by the Kenya Information and Communications Act, 1998, and the Kenya Communications Regulations 2001. 

Telecommunications licensing requirements

The submission of a properly filled-out application form initiates the licensing procedure. You can download application forms from this page’s License Application Forms section. 

The form contains information on the minimal standards needed to approve an application for each kind of license, as well as the associated costs. All ISP applicants for commercial licenses should, in general, fulfill the following requirements:

1. The entity should be registered in Kenya as a company, sole proprietor, or partnership.
2. Have a duly registered office and permanent premises in Kenya.
3. Provide details of shareholders and directors.
4. Issue at least 30% of its shares to Kenyans on or before the end of three years after receiving a license.
5. Provide evidence of compliance with tax requirements.

For ordinary ISP applicants, the requirements are:

1. A letter signed by the company CEO, on company letterhead, asking for authorization to sell low-power equipment.
2. The letter must provide contact details such as physical and postal addresses, telephone numbers, emails, etc. for the company.
3. Indicate the type and model of equipment to be sold.
4. Attach the company Certificate of Incorporation or registration certificate copy to the letter.
5. Attach a copy of the company PIN Certificate.

3. Product and Service Development

a. Package Offerings: Now, just like there are numerous dishes on a menu, let’s talk about the various internet bundles you can offer. Assume you are starting a food delivery business; some customers want a little snack, while others require a full meal.

In the same way, different people have different needs. Thus, develop packages such as “Budget Explorer” for individuals seeking more economical options, or “Speedy Surfer” for quick browsing. Each person should get to have what works best for them.

b. Installation Requirements: Research the best type of equipment that you will need to set up your base station. Focus on quality and best performers.

For the client side confirm what’s needed and their respective prices. Decide if the clients will be purchasing everything or if the company will provide it.

c. Equipment Selection: 

Choosing dependable routers and servers is the foundation for developing a strong internet service. Servers store and analyze data to provide a smooth online experience, while routers function as traffic controllers, effectively directing data between devices.

Purchasing high-quality routers and servers is like building a strong foundation because it serves as the cornerstone of a dependable and quick internet connection.

Reliable routers make it easier for devices to communicate with one another, avoiding bottlenecks and data transmission delays.

Strong servers, on the other hand, guarantee speedy access to websites and online content. This calculated risk improves user experience overall and positions your ISP as a reliable supplier in the competitive industry.

4. Marketing Strategies

Adopt a multifaceted strategy that makes use of internet platforms including social media, SEO, and targeted advertising. Differentiate yourself in the congested digital market, such as high-speed plans, reasonable prices, or first-rate customer service.

a. Targeted Marketing: Target marketing is similar to creating messages specifically for target audiences, making sure your advertising campaigns are effective. Determine the important user behaviors and demographics in your service areas.

For example, emphasize the cutting-edge features of your internet package if you are targeting an urban market that is tech-aware.

On the other hand, if your target market consists of suburban consumers on a tight budget, highlight family-friendly bundles and reasonable prices.

By getting to know your target, you can craft marketing strategies that speak to their requirements and successfully connect with the people who are most likely to stick around as devoted clients.

b. Customer Engagement: Customer engagement is the art of building relationships in the digital world. Create a vibrant online presence on social media sites where clients may communicate, post queries, and exchange stories.

React as soon as possible to questions, comments, and issues, demonstrating your dedication to client happiness.

Use loyalty programs or exclusive offers to thank and keep current clients. Promote user-generated content to foster confidence in the community, such as reviews and testimonials.

Similar to a welcoming local business, encouraging pleasant customer interaction grows your present clientele and draws in new ones via referrals and favorable internet reviews.

5. Network Infrastructure Optimization

It is essential to be aware of your network infrastructure, and assess and troubleshoot issues when they arise. This will guarantee top performance and reliability.

Keep yourself updated with new technologies and equipment that guarantee optimum performance. Doing so, will increase your internet speeds and decrease latencies within your network infrastructure.

Staying updated and deploying proven techniques will ensure you meet and exceed customer expectations.

6. Customer Feedback Integration

Implement methods or systems of collecting and analyzing clients’ feedback. Major in service quality and performance. Improve month over month on weaknesses that arise. 

Customer satisfaction means consistent monthly income, referrals, and a booming business. 

By implementing these techniques and steps you will position your ISP business as customer-centric and guarantee reliability.

7. Scalability Planning

This is important to keep in mind to accommodate growth in client numbers. It’s a guarantee to receive consistent growth when you offer reliable internet that is stable and good communication skills.

As the client grows so should your infrastructure and internet usage. Have a solid plan on how you will implement this when that time arises.

Place your base stations in densely populated areas. The gadgets should be capable of accommodating a good number of clients. There are high-performance access point gadgets that are affordable and can guarantee high-speed internet.

This solid approach ensures your internet business remains adaptable and prepared for future growth.

8. Efficient Installation Processes

Have a smooth and straightforward installation process, from pricing, client expectations, installation timeline, etc. This is crucial during onboarding clients.

Simplify the installation process to increase customer satisfaction and a positive reputation for your company. 

9. Proactive Technical Support:

Have a good customer support team to address any internet service disruption or any technical issue customers may encounter.

YOu can also implement alternative channels to address customer support such as chat, emails, and calls. Note clients are different and not all are comfortable using one channel.

10. Customer Education Initiatives

Create high-quality materials that can educate customers and help them better understand their internet services.

Implement Frequently asked questions (FAQs), step-by-step tutorials, and troubleshooting guidelines.  This will ease your work and eliminate recurring basic issues.

Equipping your ISP customers with knowledge improves overall experience and fosters loyalty to your business.

11. Comprehensive Budgeting:

Develop a detailed budget that covers the following:

• Initial setup costs
• Network infrastructure investments
• Ongoing operational expenses.

Every month review and adjust the budget based on current market conditions and your business performance. This detailed approach to your ISP business financial planning ensures the stability and longevity of your ISP business in Kenya.

12. Digital Marketing

Google my Profile

Having a strong online presence is crucial for the success of any business, including your new ISP (Internet Service Provider) venture in Kenya.

The first step to establishing your online presence is to create a Google My Business profile. This free tool provided by Google allows you to showcase your business information, including your address, contact details, website link, and even customer reviews.

To optimize your Google My Business profile for your ISP Business:

• Provide accurate and up-to-date information about your ISP business, including your office address, phone number, and business hours.

• Encourage customers to leave reviews on your profile as positive reviews can enhance your online reputation and attract more customers.

• Regularly update your profile with special offers, announcements, or any changes in your business operations to keep customers informed.

Website development

A well-designed and user-friendly website is a powerful tool that can significantly impact the success of your ISP business in Kenya.

Your website serves as the digital storefront for your business and is often the first point of contact for potential customers. Therefore, it is crucial to invest in professional website development to create a positive impression and attract and retain customers.

Social media marketing

Social media platforms have revolutionized the way businesses connect with their target audience. Utilizing social media marketing strategies can help you reach a wider audience, build brand awareness, and foster engagement with your ISP business in Kenya.

To effectively leverage social media marketing for your new ISP business in Kenya:

• Identify the platforms that align with your target audience’s demographics and preferences. Facebook, Twitter, Instagram, and LinkedIn are popular choices in Kenya.

• Develop a content strategy that incorporates a mix of informative, entertaining, and engaging content related to ISP services and the benefits they offer. Focus on providing value to your audience rather than solely promoting your business.

• Engage with your followers through comments, direct messages, and sharing relevant content from other reputable sources. This encourages conversations and enhances your brand’s credibility.

• Run targeted advertising campaigns on social media platforms to reach potential customers in specific geographic areas or with particular interests. Utilize compelling visuals and persuasive messages to capture attention and drive conversions.

Local SEO services

Optimizing your online presence to ensure your ISP business appears prominently in local search results is important.

Local Search Engine Optimization (SEO) strategies aim to improve your website’s visibility in search engines when users search for ISP services in specific geographical locations.

By implementing these digital marketing strategies – creating a Google My Business profile, investing in website development, utilizing social media marketing, and optimizing for local SEO – you can effectively promote and grow your ISP business in Kenya.

Embrace the power of digital marketing to connect with your target audience, build brand awareness, and drive customer engagement.

Recommended Hardware Equipment for ISPs 

ISP Gadgets for Access Points

This varies with terrain, bandwidth, and distance from the base station to clients.

• Sector AC M5 
• Omni Ac M5 
• Powerbeam AC Gen 2
• Cambium Force 200 

ISP Gadgets For Clients 

• Litebeam AC M5  / Nanostation AC M5 / Powerbeam GEN 2
• Wireless router 
• Outdoor Cat 6 Cable

Starting Capital for ISP Business in Kenya Breakdown

The following is an estimate of the cash required to start an internet service provider business in Kenya.

It is important to note that the amount stated below should not hinder you from starting the business. You can start with a lower amount, another good option is to start selling internet to neighbors.

Factors affecting starting an ISP business in Kenya include infrastructure costs, licensing fees, equipment expenses, and initial operational costs.  Here’s a rough breakdown:

1. Infrastructure and Network Equipment:

   • Backup, routers, switches, and other networking equipment: Ksh. 100,000 – 300,000/=
   • Towers and antennas for wireless connectivity: Ksh. 50,000 –  100,000/=

2. Licensing and Regulatory Compliance:

   • Licensing fees and legal compliance costs with the Communications Authority of Kenya (CAK): Ksh. 80,000 – 120,000/=

3. Office and Operational Setup:

   • Office space lease, furnishings, and utilities: Ksh. 20,000 – 40,000/=
   • Operational expenses (salaries, insurance, utilities, etc.) for the first few months: Ksh. 50,000 – 100,000/=

4. Marketing and Branding:

   • Marketing campaigns, website development, and branding: Ksh. 50,000 – 100,000/=

5. Customer Support and Training:

   • Customer support infrastructure and training programs: Ksh 20,000 – 50,000/=

6. Contingency and Miscellaneous:

   • Contingency fund for unforeseen expenses: Ksh. 20,000 – 50,000/=

Total Estimated Starting Capital for ISP Business in Kenya: Ksh. 390,000 – 860,000/=

It’s important to note that

• These are rough estimates
• Actual costs may vary based on factors such as the initial subscriber base, the geographical area to cover, and the infrastructure choices.
• Ongoing operational costs should be factored into your budget.

Before finalizing your budget, conduct an in-depth study, seek quotes from equipment suppliers, and consult with professionals for an accurate estimate based on your business plan and market conditions.

ISP Business in Kenya Profit Margin Estimate

Below is a detailed estimate of how much you can earn as a wireless internet service provider in Kenya.

With hard work and persistence, you can earn hundreds of thousands when you scale up selling wireless internet in Kenya. It’s a business with good returns and a promising future. 

Where to Buy ISP Gadgets in Kenya

The following suppliers offer quality products and advice. They offer countrywide shipping or you can visit them to get the best ISP gadgets at affordable prices in Kenya.

• Nile Computers:

Website: www.nilecomputers.co.ke

• CTC Solutions

White Ash Shopping Complex, First Floor F3, Munyu Road, Nairobi.

0110004400

sales@ctcsolutions.co.ke

https://ctcsolutions.co.ke

Mon-Sat : 8:00AM – 6:00 PM

• Almiria Tech Store

• Glantix

Moi Avenue Bihi Towers, Nairobi,
Kenya Basement 1 Shop B2.

WORKING HOURS

Monday-Friday 8:30 AM -5:30 PM
Sat 9:30 AM-2:30 PM
Sundays and Public holidays: Closed

GET IN TOUCH

• (+254)0111 050130
• (+254)0700 000736
• 020 4452345
• sales@glantix.co.ke, salesb@glantix.co.ke
• P.O BOX 14404-00400 NAIROBI, KENYA

Best Resources to Learn and Grow Your New ISP Business in Kenya

Learn Communication Skills

Learn How to Manage and Troubleshoot Internet Problems

Learn How to Market Your Business on Social Media

Click Here

Learn How to Grow Your Business

Click Here

Conclusion – ISP Business in Kenya

Starting an ISP business in Kenya requires a commitment to continuous improvement, excellent customer service, and meticulous financial planning. By staying agile, responsive to customer needs, and financially resilient, your ISP can thrive in the competitive telecommunications landscape.

Embrace technological advancements, cater to customer feedback, and optimize your network infrastructure to provide cutting-edge and reliable internet services.

With careful planning and diligent execution, your ISP business can flourish and make a substantial impact on the connectivity landscape in Kenya.

FAQs about Starting an ISP business in Kenya

1. How much capital do I need to start an ISP business in Kenya?

To kickstart your ISP business, you’ll need a varying amount of capital depending on factors like infrastructure setup, licensing fees, and initial marketing expenses. A ballpark figure could range from a few hundred thousand to a few million Kenyan Shillings.

2. What licenses and permits are required to operate an ISP in Kenya?

You’ll need to obtain licenses from the Communications Authority of Kenya (CA) to legally operate as an ISP. These licenses include Network Facilities Provider (NFP) and Application Services Provider (ASP) licenses. Complying with regulatory requirements is crucial for a lawful and smooth operation.

3. How can I differentiate my ISP business from competitors in Kenya?

Differentiation is key. Consider offering unique service packages, exceptional customer support, or innovative solutions. Understanding your target market and tailoring your offerings to meet specific needs can set you apart in a competitive landscape.

4. What are the key technical requirements for setting up an ISP infrastructure?

Your technical setup will include routers, servers, and networking equipment. Ensure you invest in reliable and scalable infrastructure. Collaborating with experienced network engineers and staying updated on technology trends is crucial for a robust technical foundation.

5. How can I attract and retain customers in the ISP business?

Effective marketing strategies, transparent pricing, and excellent customer service are paramount. Engage with your community, offer competitive packages, and promptly address customer concerns. Building a positive reputation through word of mouth is a powerful tool in customer retention.

6. What challenges should I anticipate in the ISP industry in Kenya?

Challenges may include intense competition, regulatory changes, and technical issues. Stay informed about industry trends, be adaptable, and have contingency plans. Networking with other ISPs and industry experts can provide valuable insights into overcoming challenges.

7. What growth opportunities exist for an ISP in Kenya? Kenya’s internet market is expanding. Besides catering to increasing home internet demands, opportunities exist in providing services to businesses, and rural areas, and expanding into related sectors like home security and smart devices.