Increasing my stock of kerosene for sales business

Erasmus Ouma

Nairobi, Kenya

100% repaid

Entrepreneur

Name

Erasmus Ouma

Member since

December 2014

On-time repayments

31 installments  •  84%

About Me

I grew up in Musoma Village in Busia County Western –Kenya.I went to the village primary school before proceeding to a high in the same county of Busia.I joined Kenya Poly in 1992 to September 1995 for Business Administration course, I then joined Trade Winds Aviation Services and worked as a clerk for 17 years before I ventured into business. I started Kerosene business in 2012 and learning that close to 70 % of the people leaving in Kayole where I leave were using the product as their form of energy, the venture had ready market. I would walk on foot going to and from college a distance of 12 kilometres for three years to attend classes.

My Business

I sell Kerosene to the people living in Kayole,the area has a population of almost 200,000 people and 70 percent of the households use Kerosene for cooking and their only form of energy. The product is ever on demand because people eat daily with the consumption increasing when schools are closed and all children are the house, they have to eat breakfast, lunch, evening tea for some families and supper in the evening.
My business has grown and I am currently selling Kerosene to retailers in 200 litre drums which I buy @ $ 112 and sell @ $ 143 making a profit of $ 22 per drum sold besides the 1 litre and even 1/2 litre I sell to customers from poor background
1- litre of Kerosene cost $ 0.56 and when sold @ $ 0.67 making a profit of $ 0.11 per litre as well. The consumption is averagely 200 litres per day but with selling of drums ,it is likely to rise.

Loan Proposal

The loan will be used to purchase more litre s of Kerosene now that the prices have drastically reduced cost $ 0.56 and when sold, will be close to $ 0.67.The loan will be enough to purchase around 170 litres. The consumption is averagely 170 litres per day, meaning we will be buying and selling the Kerosene on a daily basis bringing a profit of around $18.7 daily .The profits will be used to purchase more Kerosene to help serve the ever increasing demand.

Feedback

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Loan Info

Project Type

Classic Loan

Disbursed amount

$132.44

Date disbursed

Mar 2, 2015

Repayment status

On Time

Projected term

8 weeks

Cost to entrepreneur

Service fee: $0.90

Lenders

Paul Buchheit

Mountain View, United States

TM

Theo Mbise

Switzerland

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