How To Set Up Your Own Cooking Gas Retail Business In Kenya

For ‘young’ people, starting your very own business and becoming self employed is the most suitable alternative to the ever growing hard to get 9 to 5 jobs. Starting a business is always the best alternative to the ever elusive jobs.

A survey by the Kenya National Bureau of Statistics (KNBS) revealed that seven (7) million Kenyans are unemployed. An additional figure of over 1.4 million are actively looking for employment. With those figures, it is easy to see why more and more people are looking for alternatives.

Because we know very many business ventures require huge amounts of capital to get started, this new How To series will only show you how to start and execute several small business that require capital from as little as 5,000 Kenyan Shillings. Thus giving you the keys to the kingdom of starting a profitable business with little or no capital.

If you are also just looking for a side hustle to maybe supplement your 9 to 5 or full time job, this is for you.

All that you need to thrive in these businesses besides capital, is good customer service of course, great managerial skills, a suitable business location, and a clear cut vision.

Today’s article will show you how to set up your very own Cooking Gas Retail business in Kenya. While this is not exactly a 5,000 Kenyan Shillings capital business, I am sure you would agree that this is also a very viable option.

The Cooking Gas Retail business also known as the Liquid Petroleum Gas (LPG) business, has continued to pick up speed and profitability in the East African nation of Kenyan.

How To Start A Cooking Gas Retail Business In Kenya

How much do you need to start a Cooking Gas business? What paperwork, and or equipment are you required to have in Kenya? If you are considering this option, here is everything you will need to kickstart your Cooking Gas business in Kenya.

1. A Business License Or Permit. This is one of the most fundamental licences that businesses in Kenya are required to have before commencing operations. Although the cost of a business licence or permit differs from county to county, it usually sits at around 3,000 Kenyan shillings.
2. An Energy Regulation Commission (ERC) License. To apply for an Energy Regulation Commission (ERC) License, you will need to provide a sketch of the location for your Cooking Gas Retail business, as well as a valid supply agreement.
3. Registration for Value Added Tax (VAT).
4. A Tax Compliance Certificate.
5. A Fire Certificate.
6. A Certificate of Weighing Scale Calibration from Weights and Measurements.
7. A Location. As with most businesses, a good location is one of the major factors that determine whether or not your Cooking Gas Retail business will succeed. Make sure your location has enough open space, as you are required to store your gas cylinders in the open, to prevent or at the very least, reduce any damage from accidents.
8. Capital. Just like with any other business venture, you would need Capital for your Cooking Gas Retail business.
9. Employ More hands. No one is an island, you really cannot carry out all the daily activities of a Bar business efficiently, on your own. Hiring a couple of your friends or other external parties to help you handle the day to day operations of your Cooking Gas Retail business, might be a good idea.
10. Figure Out Your Target Market. Cooking Gas comes in a variety of sizes (3 Kilograms, 6 Kilograms, 13 Kilograms, 15 Kilograms, 35 Kilograms and even 50 Kilograms) in Kenya. Knowing and understanding your target demographic, will help you know the particular sizes of Cooking Gas to stock up on and also help you fine tune your marketing strategy towards said market. For example, the 3 kilogram and 6 kilogram sized gas is mostly purchased most in low income areas as well areas occupied by university and campus students. If your Cooking Gas Retail business is located in such an area, you will only need to stock up on those sizes. where there isn’t much of a need for bigger cylinders.
11. Decide Your Pricing. Having a realistic pricing point, will ensure that you will stay relevant. When doing this, please put into consideration, your labor, logistics, expenses, as well as your competition, branding, demographics and other factors. It is advisable for example, that you charge slightly less than your competition at least at the beginning. Doing this, will help you attract much more customers.
12. Gas Cylinders. You can secure gas cylinders from Petrol stations especially the small size gas cylinders. The Petrol stations however, sell them at different prices depending of course on the size and the brand of the cylinders. First, there are the oil marketing companies that brand the gas and package them in cylinders. Gas cylinders can be purchased from Asian countries as well as local companies within Kenya. You can also get your gas cylinders from wholesalers. Just make sure that they (the wholesalers), are licensed. This is because there have been a number of cases of pirated cylinders. These pirated cylinders, are usually considerably cheaper so be careful with prices that seem too good to be true.

And that is it! All you need to know about starting your very own Cooking Gas business. Depending on the demand for your product (Cooking Gas), you can make as much as 3000 Kenyan Shillings to 5,000 Kenyan Shillings per day. Cool right?

Is the Cooking Gas business, a suitable venture for you? That question, is left for you to think on and answer. This writer’s goal is to open your eyes to the various entrepreneurial opportunities that abound in the country.

Also while the prospects are very promising please have a realistic approach as well. As with any business, there is a chance that you might incur losses. Especially at the beginning, so please keep your overheads low.

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