Start Manufacturing Business of LED Bulbs and tubes in Kenya

The LED lamp market is expected to increase by 25 percent annually, and will reach 25 billion dollars by 2023. This makes LED light manufacturing an investment opportunity that is profitable for entrepreneurs.

The Light Emitting Diodes (LEDs) can be described as semiconductors that emit visible light whenever electricity flows through them. When compared to traditional lighting systems, LEDs are less bulky and have a longer operational duration and have a lower cost of ownership. Available in a broad range of colors LED light bulbs last longer and provide comparable or superior lighting quality than other kinds of lighting.

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The LEDs used in residential lighting, specifically Energy Star rated products, use at least 75 percent lower energy consumption and will last up to 25 times longer than traditional incandescent lights. They also consume much less power. A typical fluorescent light that is 84 watts can be replaced by the equivalent of 36-watt LEDs, which will provide the same amount of lighting output.

Types of LED Lighting Business

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There are two options to setup an LED-lighting business

1.) Business of retail

If you believe that selling isn't your thing, and you are able to sell industrial lamps lighting tubes as well as incandescent bulb. It is possible to open retail counters and connect with other schools, universities, colleges as well as government and private establishments as also offices. If you're planning to set up a retail counter, it is essential to locate reliable suppliers and lastly, have an in-depth understanding of the pricing and quality.

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These are just a few of the important aspects that shouldn't be neglected if you are looking to continue to grow and thrive on the market.

2.) Production business

However, the manufacturing process could be time-consuming and complex due to the production of complex products along with large-scale operations. But, it's not essential to establish the manufacturing enterprise on a large scale. You can begin a small-scale assembly machine.

It is essential to comprehend the basic principles of LEDs production and the various interconnected units before you can create a manufacturing facility. It is also essential to obtain several permits and registrations from authorities as well as a few manufacturing equipment.

How it is profitable in Manufacturing LED Bulbs?

In accordance with the rules of the government and regulations, there are a few advantages offered to entrepreneurs who want to establish the largest scale LED manufacturing facility. There is a Kenya Government grants an exclusive benefits package to help massive scale production LED entrepreneurs. Entrepreneurs or business owners are eligible for the incentives within the Electronic System Design and Manufacturing (ESDM) sector, as part of the Modified Special Incentive Package Scheme (M-ISPS). The applicant (business owner or entrepreneur) is able to avail the incentive if they've invested in the project in the last 10 years from the date.

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Note: If you have enough funds, budget is not a constraint and you're already familiar with the field and have the necessary experience, then it is recommended to establish the LED manufacturing industry.

Bottom Line

Thus, setting up a business as your own LED Lighting Company in Kenya isn't difficult. You just have to plan ahead and take into consideration the factors mentioned above. However, if you are still having questions, feel free to ask questions in the comments section.

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