How to Start a Biodiesel Business in Kenya

Have you visited a restaurant lately to grab a fried chicken bite? Well, next time you go to any fast-food joint make sure you ask the cooks what they do with the used oil. Most probably they will tell you they usually throw it away.

What a waste!

Did you know that you can actually convert this waste into Bio-diesel and sell it at a premium price?

Well, the reason I am telling you about this relatively new idea in Kenya (and Africa at large) is because I came across a success story of a young gentleman from Lusaka Zambia on CNN.

The young man has converted his small backyard into a refinery of sorts and he now makes Ksh.1,500,000 per month.

He is creating employment and helping his country achieve its green energy goals.

Why can’t our very own talented young men and women take up this idea and replicate it locally?

It is very easy to make bio-diesel.

You only need to collect the used frying oil from the local restaurants and you are ready to make your millions as you help the country switch to renewable energy.

*What Is Bio Diesel?*

Biodiesel is a renewable type of diesel that can be created from the oil we use to cook food with. Yes, think of Golden fry, Fresh Fry or any other cooking oil we use.

Generally, bio-diesel is a more reliable source of energy than crude oil diesel.

You can sell it to Matatus, generator owners, lorry drivers, poshomill operators, tractor owners, combine harvesters, small cars and the list is endless.

*Step One: Learn How to Make Bio-Diesel*

You probably are thinking that you need to have a PhD in Chemistry or Petroleum Science to produce a bucketful of ready-to-use biodiesel. But that’s not correct.

Making biodiesel is simple provided you understand the fundamentals.

Here I have picked one 7 minute Youtube tutorial that I have found to be simple and easy to follow. If you are a curious person (I believe you are) take a few minutes to watch it using the link below.

*Step Two: Get The Ingredients*

Okey, here we go.

You only need three ingredients to make this oil.

The first ingredient is used cooking oil which I am sure you can find at your nearest restaurant for free or at a small cost.

The second ingredient is methanol which is sold by companies like Marty Enterprises (Nakuru, Kenya), Desbro (Industrial Area, NBI, Kenya), Kenya Lab Supply (Kirinyaga Road), Manigate (Kijabe Street). The price is Ksh.2,400 per 2.5 liters.

The third and last ingredient you will need is sodium hydroxide, (this you can find in the same shops where methanol is sold) and it goes for Ksh.1,200 per 500grams.

*Step Three: Create Your Product*

Create a sample product using the skills you have learnt in the youtube video tutorial I shared above.

Test it first yourself and then market it to your friends first.

I know you may be tempted to compete with your nearest Petrol Station, especially if you live in a place where fuel energy is scarce. But we highly recommend you start small to test the market.

*Step Four: Go Full Commercial*

Naturally, the more you get accepted by your test market, the greater your chances of success you will get.

At that point you can buy more sophisticated equipment (using the money you will have earned from your maiden sales) and go fully commercial.

*Step Five: Start Manufacturing Soap*

The same ingredients used for making bio-diesel are the same that are used to make bar soaps.

Now you and I know that there is market for soap and that the profit margins are quite good – but that’s a story for another day.

*How Much To Invest*

You will require less than Ksh.50,000 to proceed up to Step three. From that point it will be easy to scale up the business using the entrepreneurship skills that we have been training you on all along in our PROFITABLE BUSINESS IDEAS WhatsApp group.

*How Much To Expect*

If the Zambian case study is anything to go by, then a conservative of over Ksh.200,000 per month would be a fair bet for a small start-up.

*Final Word*

There are two kinds of entrepreneurs in this world: product creators and resellers.

Product creators are the ones who call the shots. They create a product, name the price and set their profit margins.

Reseller on the other hand prefer to thrive in other people’s ideas and so they only end up earning a small commission at the very end.

The problem with Africa is that we have too many resellers and too few product creators. And that’s why if you go to our supermarket stores today, most of the products you will find are either made in China, USA, Germany or India.

But as we have seen in this brief article, you (yes you) can be the next product creator in your country if you start your own bio-diesel plant today.

Also, don`t forget to join our training on Investing for Beginners.

Have you ever wondered how the rich grew their wealth to an exponential point and yet it keeps on growing?

Do you aspire to become a successful investor? Or perhaps you aspire to become financially free and retire early?.

Do you want to learn what it takes to start investing?

We have created a WhatsApp group called *INVESTING FOR BEGINNERS TRAINING* WhatsApp Group.

In this training group, we will teach you on how you can invest as a beginner. There’s nothing better than having your money make more money.

With some common sense, careful planning, and the right advice, you too can watch your money accumulate like it’s growing on trees.

It is a known fact that Rome wasn’t built in a day, and the successful investors of today were once investing beginners some time ago. So the fact that you are just starting out in the investment world should not weigh you down.

You can still become a successful rich investor and attain the pinnacle of success in the investment world, if only you will be willing to learn and take baby steps.

By
Timothy Angwenyi
Business Consultant

Justine Nyachieo
Business Man & Mentor

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