How to Start a Laundry Business in Kenya

The laundry business in Kenya has grown significantly in recent years, fueled by urbanization, busy lifestyles, and increasing demand for convenient laundry services. 

Starting a laundry business can be highly profitable if done right, offering steady revenue streams and scalability. 

Whether you’re targeting high-end urban areas or middle-class neighborhoods, this guide will help you establish and run a successful laundry business in Kenya.

Why the Laundry Business is Profitable

Four key factors support the profitability of starting a laundry business in Kenya:

Increasing Demand for Laundry Services

Urban dwellers, students, and professionals often lack time or equipment to do their laundry, creating a growing demand for laundromats and cleaning services.

Scalable Business Model

You can start small with basic equipment and expand into more advanced services, such as dry cleaning and delivery.

High Profit Margins

Once equipment and overhead costs are covered, most of the revenue is profit due to low operational costs per load.

Diverse Customer Base

From residential clients to institutions like hotels and schools, laundry services cater to a wide market.

With these advantages, the laundry business presents an excellent opportunity for entrepreneurs in Kenya.

Steps to Start a Laundry Business in Kenya

Below is the step-by-step process for starting a laundry business in Kenya:

Step 1:Conduct Market Research

Before starting your laundry business, research the market to understand demand, competition, and customer preferences.

Key areas that you should research include:

Target Market

Identify your ideal customers (e.g., working professionals, students, families).

Competition

Analyze existing laundry businesses in your area, including pricing and services offered.

Location

Find areas with high foot traffic or residential zones with limited laundry services.

Pro Tip

Focus on underserved areas to establish a unique niche and gain loyal customers quickly.

Step 2:Develop a Business Plan

A well-structured business plan will guide your operations and help secure funding if needed.

Key elements that should be part of your business plan include:

Executive Summary

Outline your goals and objectives.

Market Analysis

Detail the demand and competition in your target area.

Services Offered

Define the range of services, such as washing, ironing, and dry cleaning.

Financial Plan

Include a budget, pricing strategy, and profit projections.

Marketing Plan

Specify how you will attract and retain customers.

Pro Tip

Use online templates or consult a business advisor to create a comprehensive plan.

Step 3:Choose a Strategic Location

The location of your laundry business plays a critical role in its success.

Examples of Ideal Locations for a Laundry Business in Kenya

  • Near residential estates, especially in urban areas like Nairobi, Kisumu, or Mombasa.
  • Close to universities or colleges with a large student population.
  • High-traffic commercial areas with professionals.

Pro Tip

Choose a location with adequate space for washing machines, ironing areas, and customer waiting rooms.

Step 4:Acquire the Necessary Licenses

To operate legally, you must comply with local regulations and obtain the required licenses.

Starting a laundry business entails getting the following licenses:

Single Business Permit

Issued by your county government.

Health Certificate

Ensures your premises meet public health standards.

Tax Compliance Certificate

Register your business with the Kenya Revenue Authority (KRA).

Step 5:Purchase Equipment and Supplies

Invest in quality equipment to ensure efficiency and customer satisfaction.

Essential equipment to purchase when starting a laundry business include:

Washing Machines

Ksh 40,000–100,000 each.

Dryers

Ksh 50,000–120,000.

Ironing Boards And Irons

Ksh 5,000–10,000.

Detergents, softeners, and packaging: Ksh 5,000–20,000 monthly.

Pro Tip

Start with affordable yet reliable machines and upgrade as your business grows.

Step 6:Set Your Pricing Strategy

Pricing should reflect your target market and operational costs while remaining competitive.

Typical pricing categories for a laundry business in Kenya include:

Washing And Ironing

Ksh 100–200 per kilogram.

Washing Only

Ksh 50–100 per kilogram.

Dry Cleaning

Ksh 500–1,000 per item.

Pro Tip

Offer discounts for bulk orders or loyalty programs to attract repeat customers.

Step 7:Market Your Laundry Business

Effective marketing ensures steady customer flow and business growth.

Viable strategies you can use to market your laundry business include:

Social Media

Use platforms like Facebook and Instagram to advertise services, share promotions, and interact with customers.

Flyers and Posters

Distribute flyers in residential areas and place posters near your shop.

Word of Mouth

Encourage satisfied customers to refer others.

Online Listings

Register your business on platforms like Google My Business to enhance visibility.

Pro Tip

Partner with local apartment complexes, offices, or hotels for bulk contracts.

Types of Laundry Services to Offer

Depending on the scope of service offered, the various types of laundry businesses in Kenya include:

Basic Laundry Services

Washing and folding clothes.

Ideal for residential clients and students.

Ironing Services

Pressing clothes to perfection, often as an add-on to washing services.

Dry Cleaning

Cleaning delicate or high-value garments like suits, wedding dresses, and coats.

Pickup and Delivery

Offering home or office collection and delivery for added convenience.

Institutional Contracts

Servicing schools, hotels, and hospitals with bulk laundry needs.

Challenges in the Laundry Business

While the laundry business offers great potential, it comes with challenges:

High Utility Bills

Water and electricity costs can eat into profits. 

Workaround to High Utility Bills

Use energy-efficient machines and recycle water where possible.

Competition

High competition in urban areas can lower prices. 

Workaround to High Competition

Differentiate your services with exceptional quality and convenience.

Equipment Maintenance

Frequent machine breakdowns can disrupt operations. 

Workaround to Frequent Equipment Maintenance

Schedule regular maintenance and invest in warranties.

Seasonality

Demand may fluctuate, especially during holidays or off-peak times. 

Workaround to Season Demand

Offer seasonal discounts to maintain customer interest.

Startup Costs and Earnings

Estimated startup costs when starting a laundry business include:

Equipment

Ksh 100,000–300,000.

Rent

Ksh 10,000–50,000/month.

Licenses and Permits

Ksh 20,000–50,000.

Marketing

Ksh 5,000–20,000.

Estimated Total Startup Investment for a Laundry Business in Kenya

Ksh 150,000–500,000.

Projected Earnings from a Laundry Business

Projected earnings from a laundry business in Kenya are provided below:

Daily revenue

Ksh 3,000–10,000 (depending on location and customer base).

Monthly revenue

Ksh 90,000–300,000.

Projected Profit margin

Profit margins for laundry business in Kenya range between 40–60%, depending on operational efficiency.

Take Away on Starting a Laundry Business in Kenya

The laundry business in Kenya is a promising venture for entrepreneurs looking to capitalize on the growing demand for convenient cleaning services. 

By choosing the right location, investing in quality equipment, and offering excellent customer service, you can establish a profitable and sustainable business. 

While challenges such as high utility bills and competition exist, strategic planning and marketing can help you overcome these hurdles.

If you’re ready to start your laundry business, focus on building a loyal customer base and gradually expand your services to maximize profits.

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