5 Steps To Start A Profitable and Compliance Daycare Business In Kenya

daycare

Daycare: The number of parents looking to wean their babies as early as possible is rising as the middle-income earners strive for better jobs and better salaries by working for extended hours. However, long gone are the days when hiring house-helps cheaply from the rural areas was the norm.

If you’ve been following local news lately, house-girls have become very expensive to maintain because of the additional burden of employees’ benefits (e.g. NHIF deductions) recently enacted by law.

Don’t forget there is free basic education that has made it possible for many potential house-helps to proceed with education aiming for better jobs and better pay. It is also worth keeping in mind that cases of rogue house-helps abusing children or even kidnapping them are on the rise across the nation.

Due to these reasons, parents nowadays prefer taking their infants to baby daycare centers – and herein lies a potential investment opportunity for you.

Step 1: Getting Started

The first step is to find a good location for your business. Whether you choose to operate it from your home or in a commercially leased house, you will need to get a professional determination on whether or not the premises are suitable for a childcare facility.

A spacious house with several rooms in rural areas can go for as much as Ksh5,000 and a similar one in urban centres for as much as Ksh20,000 (low tier areas) and Ksh50,000 and above for high tier estates.

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Step 2: Get The Licenses for Daycare

Once you’ve figured out the location of your business, you’ll need to think about getting licenses and insurance. So far, the most important licenses you will need are the Single Business Permit and Fire Safety – both of which are issued by the county governments.

The former goes for about Ksh15,000 and the latter for Ksh3,000 or thereabout. You may also need to purchase Liability Insurance cover to protect facilities, staff and children (cost may vary).

Step 3: Prepare The Premises, Buy Equipment

Call in a carpenter and a painter to do the job of converting your premises into a typical child-friendly environment. At the same time, you can request the carpenter to help you with making affordable equipment. Some basic equipment and appliances you may need include:-

  • Toys (dolls, watercolors, finger paint, ribbons, markers, small people, plastic blocks, stuffed animals and puzzles)
  • Basic educational materials (storybooks and charts)
  • Furniture (small chairs, tables, nap mats, couches, and stools)
  • Appliances (Refrigerator, microwave, plates, small sufurias, buckets, and cups)
  • Playground equipment (Used car tires, bouncing castles, trampolines, etc)

You can also buy these locally (in markets and classified ads websites) at very reasonable prices.

Step 4: Market it

The best way to market a baby daycare business is through referrals. So even as you set up the facility remember to network with as many parents as possible – a good reputation is key. Invest in a few business cards and flyers as well. You can introduce a bit of social media marketing later on.

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Step 5: Hire Additional Staff

Before you hire any member of staff to work in daycare make sure they have a clean criminal background and knowledge of caring for children. Always request for a certificate of good conduct. Examples of team members you may need to hire include security personnel, cooks, cleaners, and ECD tutors. Basically, the smaller the team the better.

How much to invest

Starting small daycare is the way to build a successful daycare business. For starters, you can invest Ksh100,000 this being enough to pay for the room (if leased), buy basic supplies, and market the business.

How much to expect in return

Parents pay as much Ksh30,000 per term (per child) in the middle-to-upmarket estates of Nairobi. Using this estimate, we can project revenue of Ksh600,000 in 3 months for a small care center of 20 children. That could translate to Ksh100,000 net profit per month (after deducting all expenses).

Final Word

You have the idea, the energy and determination. What are you waiting for? Go ahead and utilize this opportunity to build a business that will make the world a better place.

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