How to Start a Lorry Transport Business in Kenya

How to start a Lorry transport business in Kenya

Starting a lorry transport business in Kenya can be a lucrative venture, but it requires careful planning and execution. In this guide, we will provide you with a step-by-step process on how to start your own lorry transport business in Kenya.

Starting Cost Breakdown

To start a lorry transport business in Kenya, you will need to consider the following costs:

ItemEstimated Cost (KES)
Purchase/lease of lorry1,500,000 – 5,000,000
Insurance50,000 – 200,000
Licenses and permits100,000 – 150,000
Fuel100,000 – 200,000
Maintenance and repairs50,000 – 100,000
Staff salaries and benefits200,000 – 500,000
Marketing and advertising costs50,000 – 100,000
Total2,150,000 – 6,300,000

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Location

Choosing the right location is critical when starting a lorry transport enterprise in Kenya. You should consider factors such as proximity to major transportation routes, access to fuel stations, availability of parking space, and security.

Requirements

To start a lorry transport business in Kenya, you will need to fulfill the following requirements:

  1. Register your business with the Registrar of Companies.
  2. Obtain the necessary licenses and permits from the relevant authorities.
  3. Purchase or lease a lorry that meets the requirements of the Transport Licensing Board.
  4. Insure your lorry against third-party risks.
  5. Hire qualified and experienced drivers and support staff.

Market size

The lorry transport industry in Kenya is vast, with a high demand for transportation services. The industry caters to various sectors, including agriculture, construction, manufacturing, and logistics.

Earnings per day: The earnings of a lorry transportation business in Kenya can vary based on various factors such as the size of the lorry, the type of cargo, the distance traveled, and the prevailing market rates. On average, a lorry transport enterprise in Kenya can earn between KES 20,000 to KES 50,000 per day.

Pros and Cons:

Pros:

  • High demand for transportation services in Kenya.
  • Potentially lucrative returns on investment.
  • Ability to diversify the business by offering various transportation services.

Cons:

  • High startup costs.
  • Intense competition from established players in the industry.
  • Dependence on external factors such as fuel prices and government regulations.

Conclusion: Starting a lorry transport business in Kenya requires careful planning and execution. By following the steps outlined in this guide, you can set up a successful lorry transport enterprise in Kenya and reap the benefits of this potentially lucrative industry

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