Cooking gas refers to the type that is stored in liquid from under pressure in a metal container. It’s used for cooking and heating. Other sources refer to is as Liquefied Petroleum Gas (LPG).
Everyone wants a side hustle income. Selling cooking gas in Kenya can also be your main or only source of income. It all depends on the scale of operations.
With improved technology and rapid urbanization, Kenyans have transitioned from the use of traditional cooking methods of jikos, firewood and stoves to the use of gas making it an essential in most households. Such a trend has made selling of LP gas a lucrative business due to its high demand.
How then can you start a cooking gas business in Kenya is the question we are addressing in this article.
What you need to start a gas business in Kenya
Before anything, start by acquiring the necessary licenses. For this kind of business, you will need a single business permit which is the trading license acquired from the offices of the County government and will cost an average of Ksh 10,000 annually.
Moreover, you are required to obtain a license at a cost of Ksh 5000 monthly from the Energy Regulation Commission by first meeting the safety requirements of having a fire extinguisher and indicating your location as well as your gas supplier.
Make sure you don’t forget about the fire license to show you can manage any fires in case they happen, a Weight and Measures Certificate and KRA Certification to show compliance.
You can then go ahead to research on the market and choose a business location. To make profits from LP gas business, its important to note the gap in the market and provide a solution but first; find out if people in the area use gas in their households. Its advisable to find out the weight of gas cylinders commonly used and provide just that.
In addition, accessibility and visibility of the location of the business matters in order for you to attract customers. Other aspects to consider when choosing a location include storage space as you need to display the gas cylinders in a metallic grill, security and how strategic the place is.
Find reliable gas suppliers most preferably directly from the companies; National oil, KenolKobil (K-Gas), Hashi Energy, Total Kenya or Proto Energy. This way you are able to obtain gas cylinders at low prices and apply a profit margin that’s reasonable hence attract customers.
You may also consider advertising your business to potential customers. The best marketing way would be use of posters with the name of the business and contact details. Advertisements is very crucial: Let the people know there is a new boss in town.
Other major considerations for cooking gas business are equipment and capital requirements. Setting up a budget will enable you to know the amount of money you need for the business.
For the equipment, a metallic grill (Ksh 20,000), legitimate weighing scale (Ksh 2,000) and wheelbarrows (Ksh 5,000) for deliveries are the main ones. In addition, incorporate Rent and deposit (Ksh 10,000), Licenses Cost (Ksh 10,000), Marketing costs (Ksh 1000) and money to obtain gas cylinders Ksh 40,000) while putting aside Ksh 10,000 for miscellaneous purposes. So, its safe to say with approximately Ksh 100,000 you are good to start a cooking gas business in Kenya.
If you do not have that figure, you can start small and scale up. If you have more capital, go big!
In conclusion, ensure the metal grill is lockable to prevent theft of the gas cylinders and maximize sales by offering after-sale services by doing deliveries to customers. To obtain a large market share, measure the weight of the gas cylinders before selling so as to win customers’ trust and they will refer their friends to you. I never go back to buying from a person whose gas ends abruptly and when I least expect it.
I hope you enjoyed reading the article, and more importantly, you have all the information you needed.