How to Start an LPG Cooking Gas Business in Kenya

If you’ve ever considered starting a business in Kenya, you might have asked yourself: is an LPG cooking gas business really profitable? The short answer—yes. But as with any business, success depends on the right strategy, location, and customer service.

Let’s dive into why the LPG business is booming and how you can carve a niche in this growing industry.

The Growing Demand for LPG in Kenya

With urbanization and a shift toward cleaner energy, more Kenyans are choosing Liquified Petroleum Gas (LPG) over traditional fuels like charcoal and firewood. Even in rural areas, more households are making the switch for the convenience and efficiency that gas provides.

Here are some quick facts about Kenya’s LPG market:

• Doubling Consumption: LPG consumption has grown from 200,000 metric tons in 2015 to over 400,000 metric tons by 2022, thanks to clean cooking initiatives.
• Import Reliance: Kenya imports all its LPG, mainly from the Middle East, with most supplies entering through Mombasa’s Kipevu Oil Terminal.
• Growing Distribution Network: Over 1,000 registered dealers exist, but a significant informal market thrives, especially in rural areas.
• Future Growth: The LPG market is expected to exceed 1 million metric tons by 2030, presenting a lucrative opportunity for entrepreneurs.

With such promising growth, how do you set up a profitable LPG business?

Here’s how Pesabook helps:

• Track Income and Expenses: Record all sales and expenses, including restocking, transportation, and rent.
• Automated Staff Payments: Ensure accurate and timely commission payments for delivery personnel and attendants.
• Customer Management: Build a customer database, track purchase history, and send refill reminders.
• Bulk SMS Marketing: Notify customers about new stock, promotions, or price changes.
• Real-Time Reports: Generate daily, weekly, or monthly financial reports to optimize profitability.
• Accessible Anywhere: Manage your LPG business from your phone or computer.