How to Start a Charcoal and Firewood Resale Business in Kenya -

Table of Contents

Introduction

The charcoal and firewood business in Kenya is one of the oldest yet still profitable hustles. Despite the growth of gas and electric cooking, a huge percentage of Kenyan households and eateries still rely on charcoal and firewood daily. From roadside kibandas to estates and rural homes, the demand remains steady because these fuels are affordable, reliable, and accessible. By starting a charcoal and firewood resale business, you can tap into this everyday demand and earn consistent profits with relatively low startup capital.

Startup Costs 💰

The costs depend on whether you’re reselling in small quantities or running bulk supply.

Capital Needed: KES 6,000 – 15,000
Key Expenses:
- Initial charcoal sack stock — KES 3,000 – 8,000 (depending on location).
- Firewood bundles — KES 1,000 – 3,000.
- Sacks, bags, or packaging materials — KES 500 – 1,000.
- Weighing scale (optional but useful) — KES 2,000 – 3,000.
- Display space/kibanda setup — KES 1,000 – 2,000.

💡 Tip: Start small by reselling charcoal in tins or small sacks, then expand into bulk supply for hotels and estates.

Why This Business Works ✅

Daily Household Need: Families cook daily with charcoal and firewood.
Affordable Entry: You can begin with less than KES 10,000.
High Margins: Charcoal bought in bulk can double in retail profit.
Flexible Market: Sell to homes, kibandas, schools, or hotels.
Steady Demand: Even with LPG growth, many households prefer charcoal for taste and affordability.

Step-by-Step Setup 🛠️

1. Choose a Strategic Location

Estates with high household numbers.
Markets or roadside stalls.
Near small hotels, chapati stalls, or nyama choma joints.

2. Source Reliable Suppliers

Buy charcoal sacks from wholesale dealers.
Firewood from farms, forests (with permits), or loggers.

3. Package for Retail

Sell charcoal in small tins (debes) or mini sacks.
Tie firewood into small, easy-to-carry bundles.

4. Set Prices

1 debe of charcoal: KES 150 – 250 (depending on town).
1 sack of charcoal: KES 1,800 – 2,500.
Firewood bundle: KES 50 – 100.

5. Market Your Stall

Display stock neatly at roadside.
Deliver to estates with boda bodas.
Offer discounts for bulk buyers.

Profit Breakdown 📊

Example:

Buy 1 sack of charcoal at KES 1,800.
Divide into 12 debes at KES 200 each = KES 2,400.
Profit = KES 600 per sack.

Selling 5 sacks per week:

Profit = KES 3,000 weekly.
Monthly = KES 12,000 profit.

Adding firewood:

Buy bundle at KES 40.
Sell at KES 70.
Profit = KES 30 per bundle.

👉 A small stall can earn KES 20,000 – 40,000 monthly.

Challenges & How to Overcome Them ⚠️

Licensing & Bans: Some counties restrict charcoal burning or sale.
- Solution: Get a county business permit and source legally.
Competition: Many vendors sell in markets.
- Solution: Differentiate with delivery, good packaging, and bulk offers.
Seasonal Fluctuations: Prices rise in rainy seasons.
- Solution: Stockpile during dry seasons when supply is cheaper.
Transport Costs: Moving sacks can be expensive.
- Solution: Buy from nearby suppliers to cut costs.

Tips to Grow 🚀

Deliver to hotels, schools, and catering businesses in bulk.
Offer home delivery subscriptions (weekly or monthly supply).
Expand into other cooking fuels (LPG reselling, kerosene).
Brand your stall with a catchy name like “JikoSmart Charcoal & Firewood.”
Add related items like matchboxes, kerosene, or cooking stoves.

Frequently Asked Questions (FAQ) ❓

Q: How much capital do I need to start a charcoal resale business in Kenya?
A: With KES 6,000 – 15,000, you can buy initial sacks, packaging, and set up a simple stall.

Q: How profitable is charcoal resale?
A: One sack can give KES 500 – 700 profit. Monthly income can reach KES 20,000 – 40,000 for small stalls.

Q: Do I need a license?
A: Yes, some counties require a business permit for charcoal and firewood trade.

Q: Where can I sell?
A: Estates, markets, roadside stalls, and small hotels or eateries.

Conclusion

The charcoal and firewood resale business in Kenya is a simple but profitable hustle that meets a daily cooking need. With KES 6,000 – 15,000, you can set up a stall, package in small units, and serve households and businesses. By ensuring steady supply, neat packaging, and affordable pricing, you can grow this into a reliable source of daily income.

👉 Explore more hustler-friendly opportunities in the Business Ideas Hub — with over 50+ small businesses you can start today.

How to Start a Charcoal and Firewood Resale Business in Kenya

Introduction

Startup Costs 💰

Why This Business Works ✅