How to Start a Scrap Metal Business in Kenya

ByTristram Ouma

Mar 26, 2023
How to Start a Scrap Metal Business in Kenya

Last updated on March 2nd, 2024 at 05:41 pm

Starting a scrap metal business in Kenya can be a lucrative venture, but it requires careful planning and preparation. This how-to guide will provide you with a step-by-step breakdown of the key aspects you need to consider to start a successful scrap metal business in Kenya.

Starting Cost Breakdown

Before starting a scrap metal enterprise, it’s essential to have an idea of the initial investment costs. Below is a table that outlines the expected costs for starting a small-scale scrap metal business in Kenya:

ItemCost (KES)
Business permit5,000
Premises rental20,000
Scrap metal scale50,000
Tools and equipment100,000
Transportation vehicle300,000

Also Checkout: How to Start a Gas Business in Kenya


The location of your scrap metal business is crucial for its success. You should consider setting up your enterprise near an industrial area, as this will give you easy access to potential customers who generate scrap metal. Also, consider areas with high population density and proximity to major highways, which will make transportation easier.


To start a scrap metal business in Kenya, you need to meet specific legal requirements, including obtaining a business permit and registering your business with the relevant authorities. You will also need to have a physical business location and the necessary tools and equipment for the job.

Market size:

The market size for scrap metal in Kenya is vast, and the demand for scrap metal is continually increasing. This is due to the growth of the construction and manufacturing industries in the country. You can target construction companies, factories, and individuals who generate scrap metal as your potential customers.

Earnings per day:

The amount of money you can make in a day will depend on the quantity and quality of scrap metal you collect and sell. On average, you can earn between KES 10,000 and KES 30,000 per day.

Pros and Cons:

Starting a scrap metal business in Kenya has its pros and cons. Below are some of the advantages and disadvantages you should consider before starting your business:


  • High demand for scrap metal in Kenya
  • Good profit margins
  • Low startup costs compared to other businesses
  • Recycling scrap metal helps to reduce environmental pollution


  • Requires physical work, which can be challenging
  • Competitive market
  • Risk of theft and vandalism of scrap metal
  • Strict legal regulations and requirements

In conclusion, starting a scrap metal business in Kenya can be a profitable venture. By following the steps outlined in this how-to guide, you can set up a successful scrap metal enterprise and tap into the vast market demand for scrap metal.

Also Checkout: How to Start a Car Wash in Kenya