Everything You Need To Start A Charcoal Business In Kenya

Charcoal Business In Kenya

Starting a charcoal business is a lucrative business here in Kenya especially when done right. The charcoal business is deeply a daily and sustainable income for those in this line of business.

However, as there is constant demand for charcoal across the country, the charcoal business becomes a highly profitable venture for aspiring entrepreneurs looking for avenues to make money.

There was a law made about the charcoal business a long time ago which affected the charcoal business. Meanwhile, if you can meet the environmental standards of the business and operate it under the regulations then a lot of opportunities await you.

You will get to know more about this business as in this article we have provided everything you need to start a charcoal business in Kenya.

Is Charcoal Business Profitable In Kenya?

The charcoal business is experiencing strict rules in Kenya. Apart from that, it has been a profitable business which was driven by the growing demand for the product both locally and internationally.

It was also driven by urbanization, industrialization, and population growth. Unfortunately, the rules that came on board years ago about the charcoal business in Kenya have made the market outcome unknown.

Judging from other country’s concepts, if the law guiding the charcoal business can be reversed it will be an added advantage to the economic development of the country.

What Are The Reasons To Start A Charcoal Business In Kenya?

The reasons to start a charcoal business in Kenya are:

1. It is a profitable business
2. You can make a profit ranging from 40% to over 100% depending on your strategy
3. This business thrives well in the international market
4. There is a ready market
5. It can be started on a small scale

How Much Does It Cost To Start A Charcoal Business In Kenya?

The cost of starting a charcoal business in Kenya is determined by how you choose to run the business whether you want to start as a wholesaler, supplier, retailer, or exporter.

And you need to understand that each type of charcoal business presents its costs for starting it. However, you will need Ksh 100,000 to start a charcoal business as a retailer, while it will cost you Ksh 800,000 and above to start it on a large scale.

How Do One Start A Charcoal Business In Kenya?

Below are steps to start a charcoal business in Kenya:

1. Choose The Type Of Charcoal Business To Start With: There are different ways of starting a charcoal business just like we stated above either you start as a supplier/producer, wholesaler, retailer/local trader, or you start as an exporter. However, you need to choose one and work towards it.

2. Write A Business Plan: First, you have to research the market of your chosen niche and understand all its pros and cons and how to fill in the gaps.

Then next is to write a business plan for your charcoal business. This helps your business to be on track with its goals. A good charcoal business plan will make your business stand the test of time as long as it is a good one.

3. Locate A Dealer: Next step to starting a charcoal business is to look out for a reliable charcoal dealer around you.

If you are starting as a wholesaler, you will need to locate charcoal producers that can supply you with charcoal. And if you are starting as a retailer, you will need a trusted wholesaler as well.

4. Get A Good Location For Your Charcoal Business: You will need to get a good location where you can sell your charcoals, and where your customers can patronize you. So you have to carefully select a place that can fit in for this business as well as get to your target market.

5. Making Sales: You can start selling your charcoals for profit. Just make sure that you are in a good location and that you also deal in quality charcoals. Once you meet up with these two things, you can start making money tremendously.


Warning: This is just an article on how to start a charcoal business in Kenya. But don’t start yet.

You have to meet up with the government officials, and once they give you a go-ahead order together with the license then you can proceed to start this business if not, don’t start yet. This is because the law guiding the charcoal business is very strict and powerful, and must be adhered to.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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