Everything You Need To Start A Gas Business In Kenya

Gas Business In Kenya

One important item every home in Kenya can boast of having today is cooking gas.

Over the years, the demand for this product in Kenya has increased as a result of an equal increase in population of people in urban areas in the country. This makes it a very profitable business option for anyone looking to commence a gas business.

As a gas business owner, what is required of you is just to fill people’s gas cylinders with gas. Just imagine the number of people living in Kenya who use cooking gas and then think about how frequently these people fill their gas cylinders. This would give you a good insight into the amount of money there is to make from the cooking gas business in the country.

If you are interested in running a gas business in Kenya, then this article is for you.

In this article, we’ll be providing well-detailed information on everything you need to know about the gas business, especially, the cooking gas business.

Who Is The Largest Gas Supplier In Kenya?

TotalEnergies is known to be the largest gas supplier/distributor of LPG for domestic and commercial use in Kenya. They are also the highest brand known as TotalEnergies Gas.

So, if you are looking for gas suppliers, distributors, and marketers, just know that TotalEnergies is the top player in the industry.

How Profitable Is Cooking Gas Business In Kenya?

The cooking gas business is a highly profitable business that anyone can start and earn up to 70%-100% profit.

The major reason why the cooking gas business is very profitable in Kenya is due to the high number of people using gas to cook. Due to this, it has amounted to a high demand for gas refilling.

Also as a gas retailer, there are other things you can sell to maximize profit which are gas stoves, gas cylinders, hoses and other cooking gas equipment.

You can also add gas cylinder repair services. This increases the amount of profit in the gas business.

What Are The Risks Involved In The Cooking Gas Business In Kenya?

The cooking gas business comes with its share of risk. And understanding these risks will be important so that you can actively prevent them on time.

One of the risks in the cooking gas business is fire explosion. We all know that liquified natural gas is highly inflammable. And for you to prevent this, you need to be inspecting those cylinders to ensure there is no leakage.

Also, you need to buy a fire extinguisher in case such risk arises.

Another risk is the theft and vandalism of equipment and facilities. However, be imperative to provide security measures to prevent such.

What Equipment Is Needed For Cooking Gas Business In Kenya?

Before starting a cooking gas business in Kenya you will need to purchase equipment like gas cylinders, gas caps, regulators, hoses, fire extinguishers, and other important equipment for storing and dispensing gas.

Meanwhile, before buying equipment ensure that your operation will meet the safety standards and regulations set by the authority for environmental safety.

How Much Does One Need To Start A Gas Business In Kenya?

Depending on the type of cooking gas business you want to start, whether a mini gas plant or gas retail business.

However, to start a mini gas plant in Kenya, you need a capital of cash Ksh 1 million to Ksh 3 million. You will need a capital of Ksh 100,000 to Ksh 300,000 to start a small-scale cooking gas business in Kenya on average (as a retailer).

How Can I Start A Cooking Gas Business In Kenya?

Below is the step-by-step guide on how to start a cooking gas business in Kenya:

1. Develop A Business Plan: When it comes to starting a cooking gas business, the first thing to do is to develop a business plan. A business plan helps you outline in detail the strategies you will use to run your business.

In simple terms, a business plan is a written plan on how to operate your business successfully. Just like most other businesses, a cooking gas business needs a well-written business plan.

As easy as this may sound, planning how you want your cooking gas business to be, your choice of location, competition, and marketing strategies are the most important steps to succeeding in this business.

2. Find A Good Location: You need to choose a location that is close to your target market. The place you choose as a location for your business has a significant impact on how successful your cooking gas business will be.

You need to consider locations that are accessible to major transportation routes.

Also, when choosing a location, you have to make sure that it complies with the safety standards for operating your business. It should be a well-ventilated environment meeting the safety protocols to minimize risks.

3. Register Your Business And Acquire The Required Licenses And Permits: You need to register your cooking gas business as it will establish your business as a legitimate one and prevent any legal issues.

At the same time, you need to obtain the necessary license and permit like a fire license, single business permit, energy regulation commission license, weight, and measures certificate from the relevant authorities to operate your business with full confidence.

4. Purchase The Needed Tools & Equipment: If you are starting a small-scale cooking gas business you will need to acquire some essential tools like weighing scales, gas cylinders, gas filling guns, gas pumps, storage tanks and safety equipment like gas masks, gloves, and fire extinguishers.

Ensure that all the core equipment is made available for operation.

5. Source For A Supplier: Identify a reliable supplier that will be supplying cooking gas to you. Meanwhile, some of the well-known suppliers of gas are Total Kenya, Kerol/Kobil (K-Gas), National Oil, Proto Energy, and Hashi Energy.

Therefore, you need to make an inquiry and reach an agreement for supplies.

6. Hire Workers: Depending on the size and scale of your business you will still need workers to operate your business effectively.

If it is a small-scale gas business, you will need at least 1 or 2 workers. While a large scale will require at least 5 workers. You have to go for experienced workers to achieve maximum efficiency.

7. Start Selling: After you have fulfilled all the requirements both finding a shop, buying equipment, getting a supplier, and stocking gas, the next is to start your refilling business officially.

As for the part of attracting customers, you should give discounts and sell at competitive prices.

Most importantly, don’t forget to offer quality services to your customers. This will keep them returning and patronizing you over and over again.

Conclusion

With the right location and selling at a competitive price the cooking gas business will be a lucrative and rewarding venture for you.

To sum it up, with the outlines made in this article, it is now easy for you to understand why the cooking gas business in Kenya has emerged to be a profitable one. Therefore, ensure to properly plan yourself before embarking on this business.

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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