How To Start A Petrol Station In Kenya Easily For Profits

How To Start A Petrol Station In Kenya Easily For Profits

Starting a petrol station is the most profitable business you can conduct. Think of this situation, day in day out people travel all over. This is to mean that those who travel with vehicles will clearly need some sort of fuel to run their engines.

Through this, you as an owner of a certain petrol station has a chance to get a lot of money from the vehicle owners.

This is how to start a petrol station in Kenya.:

Step 1: Have A Business Plan

To successfully run any business you need a business plan. The plan contains market analysis, strategies, competitive advantage analysis, where to source fuel and many more key information you must know as a beginner.

Step 2: Buy Or Rent Property

A petrol station needs a physical place, you must have land whether you buy or rent. However, if you buy the plot is much cheaper in the long run.

The land MUST be near main roads so that vehicles and motorcycles can easily come to your petrol station.

Step 3: Build Your Petrol Station.

Construct a petrol station, tanks, shelter, and also normal houses for offices or shops. If you have no idea about petrol station equipment prices here I have them.

Fuel pump machine prices in Kenya include:

Duo Nozzle   – KSh 480,000 and above per unit.

Single Nozzle – KSh 270,000 and above per unit.

Twin (SUPER & DIESEL) – KSh 480,000 and above per unit.

Step 4: Obtain Permits

For you to legally operate, your business must be registered. Ensure you have business, fire, and health permits or licenses.

Business permits cost an average of Ksh. 7,500 to Ksh. 15,000. Fire permit cost an average of Ksh. 5,000.

If you are uncertain of where to start to get your permit, read this article here.

Step 5: Get Insurance

You must have an insurance cover for your business just in case disaster strikes.

Insurance cover will help you overcome difficult moments of disaster such as fire or accidents etc depending on the policy you choose. Be sure to check out what others have insured. Fire cover is a must.

Step 7: Get Suppliers

You should have at least three reliable suppliers to restock your fuel. Just in case one is not available you will still be in business since the others can still serve you. Secure your suppliers contacts.

Be sure to use reliable suppliers who will deliver quality fuel. Remember, the success of your business is determined by the kind of suppliers you will choose. Hopefully they deliver the correct fuel without mixing or reducing for malicious gains.

Step 8: Market Yourself

To gain more customers you need to do marketing both online and offline. Offer promotions and offers to attract more clients. Serve your customers well to earn loyal and long term customers.

Now that you have learnt basic information on how to start a mini petrol station in Kenya, I wish you good luck.

Capital Needed To Start A Petrol Station

The cost of starting a petrol station in Kenya on average is Ksh. 6,000,000 to Ksh. 15,000,000. The starting capital is very high as it includes land, construction, equipment, stocking, licensing, and insurance.  

Be sure to have enough capital to run your business once you have started. You need consistent supply of fuel, transportation cost, and pay your staff.

Small petrol station business in Kenya can be started even in a small premises and you won’t need much capital. As long as you buy at least one fuel pump and upgrade later. For small scale, consider serving motorist.

So you must have your mini petrol station in places where motorcycles are plenty.  The business will however grow from small to a stable one which will later on lead to higher incomes.

Registering A Petrol Station

How to register a petrol station includes making an application to relevant authorities. Since you are now operating as a company, it must be registered to be on the safe side of the law. A detail explanation is of how to register your petrol station is here.

 Profitability Of A Petrol Station

Is petrol station business profitable in Kenya. Yes. A petrol station is a very profitable business in Kenya and you can make an annual profit of an average Ksh.9,000,000 for a well situated and stocked petrol station.

By now I am very sure that you have the clue to whatever you were looking for. If you want to start a petrol station or a mini petrol station, then nothing should stop you the time is now.

Kenyans Consult

At Kenyans Consult, we are proud Kenyan writers. We write anything that pertains to Kenya and is worth sharing. We hope to share more about Kenya with the world through our writing. Check our articles to learn more about Kenya.

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