Starting a hardware business in Kenya cheaply with low capital

How to start a profitable hardware business in Kenya

Hardware businesses in Kenya have increased over the past years, with many people aspiring to generate profits. Most of us tend to wonder how to start a profitable hardware business with low capital and still be able to generate maximum profits.

This is practically possible provided you have the right information and be able to dry different approaches that will differentiate you from your other competitors.

Starting a hardware business in Kenya cheaply with low capital

starting capital for hardware business in Kenya

Before you set up your hardware business, you should be able to properly calculate the starting capital of the business to avoid unnecessary costs. Down below, is a table showing the starting capital of a certain hardware business.

Hardware businessStarting capital (ksh)
Rod and Steel bars100,000
Cement stock- 200 bags 100,000
Roofing sheets150,000
Other expenses50,000
Business Permit20,000
How to start a profitable hardware business with low capital

Factors to consider when starting a hardware business in Kenya

1. Location of the hardware business

You will need to choose a suitable area to run your hardware business. This location should be around construction activities and infested with customers with high purchasing power to avoid making losses.

2. Carry your market research

You should be in a good position to carry out your market research, which will help you know the proper starting capital and help you overcome challenges in the market. You will also learn to satisfy your customers and be aware of fast-moving products in the market.

3. Obtain a business permit

To start a hardware business in Kenya, you will require a business permit from the Government to avoid unnecessary costs and harassment from the authorities.

Obtaining a business permit in Kenya costs around ksh.10,000 each year from the county offices. you should also ensure you pay taxes regularly.

4. Identify efficient suppliers

You should ensure you know the best and cheap suppliers of your hardware products, that are able to provide transportation services and efficient fast-moving products.

5. Be aware of your hardware products

Ensure your hardware products are fast-moving goods that are high in demand to maximize your profits. Some of the fast-moving products you could include in your hardware include;

  • Nails
  • Tiles
  • Gutters
  • Roofing sheets
  • Rods and steel bars
  • Cement
  • Plumbing pipes

Is the Hardware business in Kenya profitable?

Is the Hardware business in Kenya profitable or not

Provided you have fast-moving goods and high-end customers, there is no doubt you will make large profits. The profit margin is usually around ten percent of the total sales made, therefore if your sales amount to ksh.60,000 then you will receive a profit of ksh.6,000.


How can a hardware store attract customers?

To attract plenty of customers, a hardware store should improve staff and invest in e-commerce.

How much profit is made at a successful hardware store?

Successful hardware stores usually make an average profit of ten percent of the daily sales.

What business type is hardware?

Hardware stores usually are retail shops, that sell construction equipment and automobile items.

How much money do you require to start hardware?

It will cost you at least ksh.200,000 to start a small hardware business.

How much does it cost to start a small hardware store in Kenya?

You can start a small hardware opening with less than ksh.100,000 and grow it in the coming years.

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