So you want to start a parcel delivery service?

NAIROBI, KENYA: The courier delivery business is dominated by big companies but there’s still an opportunity for small companies to tap into the market.  The key activity in this business will be to facilitate the delivery of packages and documents from one location to another.

What You Need

Capital

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You’ll require at least Sh500,000 to start a courier delivery business. The seed capital will go towards registering a company, paying licensing requirements and acquiring motorcycles for deliveries.

Company registration

The parcels and courier business is regulated by Communication Authority of Kenya (CAK). CAK requires all operators have registered companies before they are issued with operating licenses. Registering a company will cost you about Sh18,000.

Motorcycles

For delivery within a small geographical area say a city or a town, you’ll need at least three motorcycles. One bike inclusive of branding and a carrier will set you back Sh115,000. As the business expands, you could buy a small van.

Licensing requirements

According to CAK, postal and courier operators must pay a non-refundable license application fee of Sh10,000. Operators within Kenya are charged an annual fee of Sh30,000 for the license.

You’ll also need an operating license from your county and a parking license which costs around Sh3,000 per motorcycle in Nairobi County and is renewable after three months.

Additionally, you’ll need to have a liability insurance cover to safeguard you against unforeseen events.

Storage space

You’ll need to rent an office that will be used to temporarily store the packages awaiting dispatch.

Employees

You’ll need to employ riders or drivers who will do the day–to-day deliveries and an office assistant to serve customers.

What you don’t need

Big office

While you may need a location to operate from, you don’t need to rent a big office in an expensive location.

Communication Authority of Kenya