How to start cooking gas refilling business in Kenya

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Cooking gas refilling business is one of the most profitable businesses in Kenya. Now that almost everyone in major towns and cities is using LPG Gas for cooking, the demand is huge. To start the business, follow these steps:

  • Do market survey

Do thorough market survey to learn about competition in the area, security status, rent for premises and the general market for the products. You should put up the business in a town setting where people rely on gas for cooking.

  • Identify a reliable distributor

It’s very important to know who will distribute the gas. They should be cheap and reliable. Sign up agreement with them to ensure they will be distributing at agreed terms. Some of the biggest suppliers of LPG Gas include, K-Gas, Robis and TotalEnergies.

  • Look for a business premise

You should look for a business premise for the shop. It should be strategically positions, probably near residential homes. The monthly rent will range between Ksh 7,000 to Ksh 20,000 depending on location. If possible, set up this business outside a premise running another business. For instance, if you are running an MPESA shop, incorporate LPG Gas business. This will save you from paying double rent.

  • Pay for licences

You must acquire necessary licenses for this business. They include:

  1. LPG Gas cylinders Retail licence
  2. KRA Pin
  3. Fire clearance certificate
  4. Business permit
  5. Weighing scale calibration certificate

All these licenses and items will cost Ksh 20,000 to Ksh 50,000.

  • Set up the business

After obtaining all those licences, proceed to set up the business. You need a capital of Ksh 30,000 to Ksh 100,000 to buy the stock.

This business also need CCTV camera, make sure you’ve installed one because it’s prone to theft.

The total capital required to set up the business, pay rent and for licenses is ksh 100k to Ksh 300k.

  • Profits

Profits depend on the number of gas cylinders you will be selling daily. Each gas cylinder will generate a profit of Ksh 300 to Ksh 600.If you sell 10 of them daily, you will make up to Ksh 6,000.

Generally, this business is profitable regardless of the town you set it up. But the best place to set the business is in Nairobi, Nakuru, Kisumu,Eldoret and Mombasa.

Most people I have talked to revealed that they make Ksh 40,000 to Ksh 150,000 per month from the business. Nearly all of them run this business with another business concurrently.

Best brands of gas to sell

There are specific types of brands to sell. Ensure you purchase the most demanded types. They include:

  1. K-Gas
  2. Afrigas
  3. TotalEnergies
  4. Hashi Gas
  5. Progas
  6. Rubis
  7. Shell
  8. Ola Gas

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