11 Worst Businesses to Start in Nairobi CBD in 2025

Are you envious of the booming businesses making millions daily in Nairobi CBD?

Do you dream of joining the vibrant business community in Kenya’s capital city? While Nairobi CBD is a prime location, not every business idea will succeed. Starting the wrong business can lead to losses, frustration, and eventual failure.

To save you time, money, and disappointment, I have researched and identified 11 businesses that are unlikely to thrive in Nairobi CBD in 2025. Due to factors like tough regulations, stiff competition, and changing consumer trends, these businesses face significant challenges in the city center.

Before you invest, read this guide to understand which are the worst businesses to start in CBD and where they can perform better.

1. Hardware Shop

A hardware business selling cement, steel, and other construction materials will struggle in the CBD. The main challenge is logistics—parking space is limited, making it difficult for customers to load and transport bulky materials. 

Instead of setting up in the CBD, consider areas on the outskirts of Nairobi, such as Ruai, Joska, Githurai, and Kangundo Road. These are developing areas where demand for construction materials is high.

2. Wines and Spirits Shop

Opening a wines and spirits business in the CBD is almost impossible due to strict regulations and constant harassment from authorities. 

If you walk around the CBD, you will hardly find any independent wines and spirits shops operating successfully. Instead, set up this business in residential estates where people prefer to buy their drinks close to home.

3. Pubs and Clubs

There was a time when owning a pub or club in the CBD was highly profitable, but things changed around 2020. More people started drinking in their local estates rather than commuting to the CBD for entertainment. 

Additionally, the introduction of alcoblow checkpoints discouraged people from drinking in town, reducing nightlife activity in the CBD. Today, a pub or club is more likely to succeed in residential areas where people feel safer and more comfortable.

4. Agrovets

An agrovet business in Nairobi CBD is not a smart idea. Nairobi is primarily a consumer city, meaning there is little to no farming activity. Agrovet businesses thrive in rural and peri-urban areas where farmers need supplies such as seeds, pesticides, and fertilizers. 

If you want to start an agrovet, target towns like Limuru, Thika, Kitengela, and Machakos, where there is significant agricultural activity.

5. Daycare Center

Running a daycare in Nairobi CBD is impractical because most parents do not work in a way that requires childcare in the CBD. People prefer to leave their children in daycare centers near their homes. 

If you want to start a daycare business, consider residential estates like South B, South C, Embakasi, or Roysambu, where working parents need reliable childcare services.

6. Car Wash Business

A car wash in the CBD is nearly impossible to run due to space constraints and legal restrictions. Most car wash services in the CBD are operated by big institutions and hotels that have designated areas within their premises. 

Unless you can secure a space in a petrol station, starting an independent car wash business in the CBD is not viable. Instead, consider running a car wash in estates where people prefer to have their vehicles cleaned near home.

7. Tuk-Tuk Business

While tuk-tuks thrive in Mombasa and some Nairobi estates, they do not perform well in the CBD. In fact, the Nairobi County government has heavily regulated tuk-tuk operations in the city center, making it difficult to operate. 

Noise pollution and congestion concerns have led to restrictions, making this business unviable in the CBD. However, tuk-tuks can still do well in places like Rongai, Kitengela, and Thika.

8. Garage Business

A garage requires ample space, which is nearly impossible to find in Nairobi CBD. Land prices are extremely high—an acre in Upper Hill costs nearly Ksh 1 billion. While you may find existing garages downtown, securing space to start a new one is almost impossible. 

Instead, consider areas like Industrial Area, Ngara, or Gikambura, where land is more affordable and suitable for vehicle repair services.

9. Selling Second-Hand Clothes (Mitumba)

While mitumba businesses thrive in Gikomba and other open-air markets, they struggle in Nairobi CBD due to high competition and customer behavior. Many shoppers prefer to buy mitumba directly from wholesale markets instead of small retailers in the CBD. 

Additionally, high rent prices make it difficult for mitumba sellers to operate profitably in town. Instead, consider selling in places like Eastleigh, Gikomba, or Kasarani.

10. PlayStation Gaming Business

PlayStation gaming businesses attract customers, especially in the evenings, but this model does not work well in the CBD. Most gamers prefer to play in their residential areas rather than travel to town. 

Moreover, gaming businesses in the CBD face strict regulations, making it hard to sustain operations. The best place to set up a PlayStation business is in estates where young people can access it easily after school or work.

11. Boda Boda Business

Operating a boda boda in the CBD is highly unpredictable because the county government frequently changes regulations. Today, boda bodas might be allowed in certain areas, and tomorrow they could be banned. 

This uncertainty makes it a risky business in the CBD. However, you can still make money selling spare parts for boda bodas in town. If you want to run a boda boda transport business, consider doing it in estates or satellite towns where regulations are more stable.

Businesses That Do Well in Nairobi CBD

While some businesses struggle in the CBD, others thrive due to high customer traffic. If you are considering starting a business in the CBD, here are some profitable ideas:

1. Electronics Shop – Selling smartphones, laptops, and accessories is a great business due to high demand.

2. Restaurant Business – A well-run restaurant in the CBD can attract customers throughout the day.

3. Chemist/Pharmacy – Pharmacies are highly profitable in the CBD but require a significant investment.

4. Tech Accessories and Repairs – Many people in the CBD look for phone and laptop repair services.

5. Printing and Photocopy Services – Businesses and students in town need printing, photocopying, and binding services.

Final Thoughts

Nairobi CBD is a dynamic business environment, but not every business will thrive there. If you’re planning to start a business, carefully consider logistics, space requirements, competition, and government regulations. The key to success is choosing a business that aligns with the needs and behaviors of the people in the area. If your business idea is not suitable for the CBD, consider other locations such as estates and developing towns, where demand may be higher.

If you’re planning to start a business in Nairobi, share your thoughts in the comments. Which business do you think will work best for you? Let’s discuss!