Landowners are now tapping container stalls for small business operations as rents take a huge chunk of their income amid a tough operating environment. 

In Nairobi suburbs, particularly, the number of small businesses renting container stalls continues to face an upward trajectory compared to the conventional permanent structures and shades owing to their affordability.

According to a recent report by Hass Consult, landlords during the third quarter of 2024 faced difficulties in rental income collection mirroring the economic hardships that most tenants are currently going through. 

“Property returns for 2024, comprising capital gains and rental yields, remained below returns from other asset classes. Yields stood at 7.2 percent in suburbs and 5 per cent in satellite towns,” the report reads in part.

Speaking to Weekendi Business, Balla Wanga, a Container World Kenya official, stated that the business has seen an upward trend in the last three years, with 2024 recording the largest container stall dispatches. In a month, the company sells between 10 and 30 containers, illustrating the growing demand.

Time frame

“Apart from affordability, the returns are quite high, in that you can be able to get your investment back within a span of one year. It is also because of their movability and the time frame of setting up one,” she said. 

In terms of the return on investments, for a 40 feet container, which can hold about five to six stalls depending on the specifications of the buyer, could be generating approximately Sh70,000 a month, which according to Wanga depends on the location. 

“So, you also need to consider the location. In some counties, you have to check whether you need any permit to place the container in that location. Another thing you need to consider also is which businesses are moving in that place or which type of businesses are in that place before you place that container stall there,” she explained. 

The company which has been in operation for 10 years credits its success to the “good relationship it has with its suppliers in the shipping lane, despite the business itself being quite capital incentive. 

“We get our containers directly from the shipping lane. We’ve been in this business for 10 years and our reputation is what makes the shipping lane give us the containers, and then we sell them and then they pay us.” 

To beat competition, she stated that they bank on their services and price standardisation.  

“The competition is stiff, so that means you have to be competitive when you’re making these container stalls. So, in the sense that we have not inflated the rates and we have not hiked the prices for the stalls. Rather, we have lowered the rates to accommodate each and every person in the sense that we have discounts. If you’re taking large sums of units, we have discounts on them,” she stated. 

For instance, a 40 feet container price ranges between Sh600,000 and Sh700,000 making it ideal for new entrepreneurs eyeing the market.  

Accommodates shops

For a 20 foot container, which accommodates shops, the prices range between Sh400,000 and Sh500,000.

“I would advise people to take business stalls, because if you have at least some land somewhere, it’s just a matter of you going to drop the container there and starting your business.  And if the land has an issue or something or if you have a personal problem with it, we can just move out with it.” 

Apart from the container stalls, the company also designs container homes and office spaces according to the specifications of the clients, hence winning their loyalty while also showcasing their versatility. 

“We usually sit down with the client during the initial process where they table their preferred designs and outlook, then advise them better on what would actually make their offices or workstations more artistic and appealing to break free from the conventional office setup, and they really appreciate it.”  

On the technical part, once the designs have been submitted and approved, the actual modification processes of the containers begin at their godowns where the team gets to design and correct any technical error prior to the final structure being dispatched. The whole process takes just less than a week making it ideal for urgent needs. 

Also, it makes specialised shops similar to those used by ice cream vendors, street kitchen and reefer containers used to transport perishable goods. 

Currently the company is setting up the country’s first mobile dialysis facility from one of the containers for a client which they say upon completion will be a milestone.  

“For this kind of container, we had to incorporate the inputs of professionals in the health industry because you know, these are lives we are talking about and everything just has to be in its place for it to be a success. upon completion, this will be the first in the country,” a technical staff at the company said. 

However, the biggest challenge that the venture faces apart from taxation is the presence of middle men who, according to Bella, distort the prices making it difficult for potential clients to embrace the idea.  

Higher price

“The middlemen I’m talking of, come in in the sense that I would be selling a container at probably 200 and probably the middleman goes and sells at a higher price. So, it probably prevents people from coming to do the purchase,” she stated.  

Other challenges that they face include, transportation as some areas are still not much developed in terms of road networks, and the issue of security in the location. 

“You know these are places that we have not been before so there are usually high security concerns, especially when we have to do deliveries in remote areas; that is for containers,” she explained.