1. UNDERSTAND THE BUILDING MATERIALS BUSINESS
A building materials business supplies essential inputs used in construction projects.
Common products include:
• Cement
• Sand, ballast, and hardcore
• Building stones and blocks
• Steel bars (rebar)
• Roofing materials (mabati, tiles)
• Timber and plywood
• Paints, plumbing, and basic hardware items (as you grow)
The business mainly serves:
• Individual home builders
• Contractors and fundis
• Real estate developers
• Institutions (schools, churches, small commercial projects)
Construction demand is continuous but often location-driven.
2. MARKET RESEARCH
Before starting:
• Identify fast-growing residential or commercial areas
• Understand common building types (bungalows, rentals, flats)
• Find out which materials move fastest
• Study competitor prices and delivery practices
• Understand seasonal trends (dry seasons have higher demand)
Market knowledge helps you stock what sells, not what looks good.
3. LEGAL & REGULATORY REQUIREMENTS IN KENYA
You will need:
• Business name registration (eCitizen)
• Single Business Permit (County Government)
• KRA PIN
• NEMA approval (may be required for sand, ballast, or quarry products)
• County zoning and land-use compliance
• Weights and Measures compliance (accurate quantities)
⚠️ County regulations are especially important in this business.
4. LOCATION & YARD SETUP
Best locations:
• Near construction zones
• Growing residential estates
• Along accessible roads for trucks
• Areas with active housing projects
Yard/shop requirements:
• Open yard space
• Secure perimeter (fence/gate)
• Storage sheds for cement and steel
• Proper drainage
• Clear loading and offloading space
Practical access matters more than beauty.
5. EQUIPMENT & TOOLS
Basic requirements:
• Weighing tools or standard measurement systems
• Wheelbarrows and shovels
• Forklifts or loaders (optional, as you grow)
• Tarpaulins for weather protection
• Cement pallets
• Record books or POS system
• Fire extinguisher
6. PRODUCT SOURCING
Source materials from:
• Cement manufacturers or authorized distributors
• Licensed quarries
• Steel and timber wholesalers
• Roofing material manufacturers
Tips:
• Start with fast-moving items
• Verify quality and consistency
• Avoid relying on one supplier
• Negotiate delivery and credit terms
• Keep supplier invoices and delivery notes
7. STAFFING & SKILLS
You may need:
• Yard supervisor or sales attendant
• Loaders (casual or permanent)
• Basic accounting or stock control skills
Staff should:
• Measure materials accurately
• Handle products safely
• Serve customers honestly
• Maintain simple records
Trust and supervision are critical.
8. PRICING & PROFITABILITY
Pricing depends on:
• Purchase cost
• Transport and handling
• Storage losses
• Local competition
Typical margins:
• Cement: 5–10%
• Sand/ballast: 10–25%
• Stones/blocks: 10–20%
• Steel and roofing: 8–15%
Avoid price wars. Focus on reliability and service.
9. MARKETING & CUSTOMER GROWTH
Effective strategies:
• Strong relationships with fundis and contractors
• On-time delivery
• Honest measurements
• Referral incentives
• WhatsApp updates on prices and stock
• Clear signage and visibility
Construction is a relationship business.
10. DAILY OPERATIONS
• Track sales and expenses daily
• Monitor stock levels
• Control theft and wastage
• Protect materials from weather
• Separate business and personal money
• Monitor transport costs closely
Operational discipline keeps you profitable.
11. CHALLENGES & RISK MANAGEMENT
Common challenges:
• Price fluctuations → Adjust pricing quickly
• Theft and losses → Improve security
• Weather damage → Proper storage
• Cash flow strain → Avoid excessive credit
Plan for risks early.
12. GROWTH OPPORTUNITIES
As the business grows, you can:
• Add transport services
• Supply bulk institutional projects
• Expand into hardware items
• Open satellite yards in new estates
• Partner with developers
Grow with demand, not pressure.
13. KEY SUCCESS TIPS
• Start small and scale steadily
• Choose location carefully
• Keep accurate records
• Build strong supplier relationships
• Be honest with measurements
• Manage cash flow
← Back to Resources