@alma I partially disagree with you on the lack of a Kenyan internet model. There is a Kenyan internet model. First we dont pay using cards or paypal we use MPESA. We don't trust sending goods through posta and therefore a different way of transporting goods bought online need to be sought.

The internet design and appearance might not be different but the model of internet commerce is as different as day and night.

Let us unveil the mask of these so called South African Companies that have failed. The way the drop off the toungue of guys, you'd think they are like 100. The truth of the matter is that they were either owened by the same company or ended up being owned by the same company.

To dig a little deeper, you will find that they had the same employees. who doesn't know the people running these companies were the very same. All you had to do was attend one of those Ihub retreats. By run, I mean, the guys who were supposed to be implementing what is being done.

One common denominator; they all hate Robert Alai. Ok that's a joke.

Pesatalk was doomed to failure from day 1. You don't go borrowing $100000 to run a blog. Now that is a special Kenyan case. Most successful blogs are run with a budget of sweat and tears by their owners.

As to this idea of a "special" Kenyan market, please dispel that idea of your head. That is if you want to succeed online.

there is nothing special in any market. The market may be late or behind, but the processes are the same.

Ecommerce is ecommerce. Mpesa is a mode of payment. Mpesa is not ecommerce and neither is Paypal or a credit card.

You open up a shop online or offline for that matter, you must look for the easiest way for your customers to pay you. It can be a credit card, paypal, payza, liberty reserve, mpesa or 100 different payment methods. Heck including cash on delivery.

If you are too busy looking at the trees, you will miss the forest all together.

I say again. The failure of some 15 guys who hang around iHub and talk in terms of those other Kenyans are silly they don't know the internet, is not the failure of ecommerce in Kenya.

Infact, its a blessing for those who wish to stick to serious business principles.

Apart from cheki.co.ke and may be eatout.co.ke(is it true they charge 80k per year) which other online ventures in kenya are making money ?

But I agree,just more opportunities for others.I also agree gaining ground now is the most important thing you can do.

@tony stark - Thank you.

@tycho - I agree.Social cultural aspect determines success of online business in Kenya.

Soo true some logistical B2C element lacking that connects the orders and delivery..payment mode is sorted by mobile payments like MPesa Airtel, Money etc..the inverted pyramid scenario can still be accessed by an sms based directory where customers can oder via sms pay via Mpesa and good delivered via bodaboda or vans or tuktuk ..therein lies the process re-engineering ..getting people to have delivery addresses via their residential location or even using their phone as GPS for direction..or have them subscribe their delivery location same way people subscribe for Posta mail..therein lies an opportunity remember cube movers...dial-a-loo...*my 3 cents