Web hosting business is among the most profitable businesses in Kenya. The process of registering a company that hosts websites for other companies is what this article is all about. How exactly do you go about it? Well, here are steps to follow when you are starting a web hosting company in Kenya:
There are two ways in which to start this kind of business. The first one is by buying reseller plan from Bluehost.This is what majority of new hosting companies do before they stabilize.
First, visit Bluehost via this link, create an account, buy a domain name and pay for hosting. Since it’s a hosting company you want to start, go straight to VPS or Dedicated Server plans because they are the ones to accommodate many domains. A dedicated server will host more than 50 websites.
You need a capital of Ksh 50,000 to Ksh 100,000 to buy a plan for hosting other websites. But you can decide to buy shared hosting plan that costs Ksh 33,000 per year. When you get more websites than the plan will sustain, upgrade to VPS or Dedicated Server.
You can follow this article to see how to buy a domain name and how to pay for hosting: https://www.webhostingvoice.com/how-to-start-a-wordpress-blog-in-kenya/
From there, you will then create a website and advertise your products there. Make sure that you also create a Facebook and Twitter account where you market your products.
With this kind of web hosting, you don’t need office space or a license from the Kenyan government to start the business, all you need is your website to advertise your hosting products. The total budget required is Ksh50,000 to Ksh100,000
The second way to start web hosting company in Kenya is by registering with Kenic.Kenic is the one to give you an okay to set up a business associated with domain registration and website hosting.
If you decide to take this route, here are steps to follow:
- Do Name Search
- Company registration
- Domain name registration
- Buy hosting space
- Set up an office
Name search and company registration
Name search and company registration will take approximately two weeks. This is done at Huduma Centers. You can either register sole proprietorship, partnership or limited company but the easiest company to register is sole proprietorship. Name search and registration of business costs approximately Ksh5,000.
Domain name registrations
The next step is to register a domain name for your business. This again requires you to visit Bluehost and buy a domain name. It will cost you less than Ksh1,500. Click here to visit Bluehost for domain registration
The domain name must bear the name of your company and it should be simple and easy to memorize.
A license is issued by Kenic.You also need another license from the county.
There are two forms you need to download from Kenic, fill them and send for approval. The first one is Registrar Application form. The second one is Registrar Accreditation Agreement. Download them here https://kenic.or.ke/registrars/
Fill the two forms and send them to Kenic.You will also be required to pay license fee of Ksh 15,000-Ksh25,000.
Another condition is that you must have at least 15 websites hosted by your company. This is where Bluehost comes in. You should first get people to host while at Bluehost before you become a registrar.
Buy hosting space
It’s only Safaricom that has its own servers in Kenya, other companies buy hosting space from UK and USA.It’s expensive to maintain a server in Kenya. What you will do is, buy dedicated server space at Bluehost where you will create several CPanels for your clients and start hosting them. After a client has registered a domain with you, transfer that domain to Bluehost server where they will host all your clients’ websites. It’s cheaper to host at Bluehost than buying your own servers. Buy hosting space through this link
The last step is to have an office space. This one is important especially if you will be creating websites for clients. Your staff will also take up spaces within the office.
Most web hosting companies are located in Nariobi.Hosting companies don’t need big space; an office that accommodates 2 to 5 people is enough. You need Ksh 30,000 to Ksh 60,000 for rent. Most landlords prefer that you pay a deposit of 1 to 3 months.
The entire process of starting a web hosting company in Kenya require a capital of Ksh50,000 to Ksh200,000.
After you have set up the business, clients will come over time. Assuming that you have 1,000 clients, the profit you will get from them is over Ksh1 million per year. There are companies like Kenya Website Experts which have more than 10,000 clients, they earn over Ksh10 million annually.