February 28, 2025
The gas business in Kenya, particularly the sale of Liquefied Petroleum Gas (LPG), is a profitable business due to the increasing shift toward clean cooking solutions.
With more households and businesses opting for gas as a convenient and eco-friendly alternative to charcoal and kerosene, this business offers a sustainable income stream for entrepreneurs.
Four key reasons make the gas business a lucrative opportunity in Kenya:
The adoption of LPG for cooking has increased as more Kenyans embrace cleaner and more efficient energy solutions.
The business caters to households, hotels, restaurants, and small-scale food vendors.
LPG refilling and sales have attractive profit margins, especially with steady customer demand.
Start small with a retail gas outlet and expand into distribution or wholesaling as your business grows.
Let’s dive into the steps needed to start and run an gas business in Kenya:
Understanding the market dynamics is crucial for success.
Key research areas when starting an gas business include:
Identify your primary customers, such as households, businesses, or food vendors.
Determine which cylinder sizes (6kg, 13kg, or 50kg) are in high demand.
Analyze existing gas outlets and distributors in your area to identify gaps or underserved markets.
Focus on areas with high population density and limited competition.
Decide the scope of your operations based on your capital and goals.
Common business models in the gas business include:
Sell filled cylinders to end-users directly from your shop.
Supply filled cylinders to retailers or households on a larger scale.
Offer doorstep delivery of gas cylinders to customers.
Start with a retail shop and incorporate delivery services to maximize your reach.
A business plan provides a roadmap for your operations and helps secure financing if needed.
Key sections that should be part of your business plan include:
List expenses such as licenses, equipment, and initial stock of cylinders.
Estimate your monthly income based on expected sales volume.
Outline strategies to attract and retain customers.
Operating legally ensures compliance and builds customer trust.
Required licenses and permits for an gas business include:
Register your business name on the eCitizen platform for Ksh 950.
Obtain from your county government (Ksh 5,000–15,000 annually).
Apply for a license to operate an LPG business, ensuring compliance with safety and quality standards.
Invest in safety training for you and your staff to handle gas cylinders responsibly.
The location of your gas outlet greatly influences its success.
Ensure the location complies with ERC safety requirements, such as adequate ventilation and a secure storage area.
Partner with reliable suppliers to ensure consistent stock and quality.
Common suppliers of gas in Kenya include:
Work with companies like Total, Shell, or Rubis to stock branded cylinders.
Negotiate favorable rates for bulk purchases from gas plants or distributors.
Start with popular sizes (6kg and 13kg cylinders) to meet common household needs.
Proper equipment ensures smooth operations and adherence to safety standards.
Train staff on cylinder handling and emergency response procedures.
Price your gas cylinders competitively to attract and retain customers.
Example pricing for gas refills is shown:
Ksh 1,200–1,500.
Ksh 2,500–3,000.
Offer discounts for repeat customers or introduce loyalty programs.
Marketing helps attract new customers and maintain steady sales.
Viable marketing strategies for advertising a gas venture include:
Use posters, banners, and flyers in your area to promote your outlet.
Advertise promotions and delivery services on platforms like Facebook and WhatsApp.
Collaborate with local food vendors and restaurants for bulk supply deals.
Offer free delivery within a certain radius to encourage customer loyalty.
Significant challenges for gas businesses in Kenya include:
Gas outlets are common in urban areas.
Solution: Differentiate by offering superior customer service or delivery options.
Gas handling can be risky without proper precautions.
Solution: Invest in safety training and equipment to mitigate risks.
Global market changes can affect LPG prices.
Solution: Adjust prices strategically while maintaining customer trust.
A breakdown of startup costs for a gas outlet is as follows:
| Expense | Estimated Cost (Ksh) |
| Initial Stock (Cylinders and Gas) | 50,000–150,000 |
| Licenses and Permits | 10,000–20,000 |
| Equipment (Cage, Scale, etc.) | 20,000–50,000 |
| Marketing | 5,000–15,000 |
On overview of projected revenue from a gas business is shown below:
| Metric | Projected Value |
| Daily Sales | 5–20 cylinders |
| Revenue Per Day | Ksh 5,000–20,000 |
| Monthly Revenue | Ksh 150,000–600,000 |
| Profit Margins | 20–30% |
Keys to succeeding in the gas sector include
Ensure strict adherence to safety protocols to build trust with customers.
Provide free delivery or cylinder repairs to enhance customer satisfaction.
Partner with reliable suppliers and maintain good rapport with customers for repeat business.
Stay updated on LPG price changes and customer preferences to adjust your offerings accordingly.
Use social media or a mobile app to take orders and improve customer convenience.
Starting a gas business in Kenya is a lucrative and sustainable venture with immense growth potential.
By adhering to safety standards, sourcing quality products, and marketing effectively, you can build a thriving business.
While challenges like competition and fluctuating prices exist, a customer-focused approach will help you succeed.
Contact us today for expert guidance and resources to kickstart your journey to a profitable gas business in Kenya.