How to turn trash to cash — with zero capital

By Lillian Kiarie

Kenya: The average Kenyan generates 0.5 kilogrammes of solid waste every day, according to studies done by the World Bank.

For the savvy entrepreneur, this collection of plastics, paper, foods, electronics, rocks and other discarded items is not garbage; it’s cash — lots of cash.

The secret to getting into the trash-hauling business is starting modestly and scaling up gradually. In fact, you don’t need any capital to get started.

No cheap wrecks

Your “assets” will come from the treasure trove you collect that can be converted into other products and sold locally.

If you’re starting out with no financing, don’t jostle for market with larger businesses that use specialised garbage trucks.

Start with light trash removal from a small neighbourhood so that the volumes of garbage don’t overwhelm you. There’s nothing wrong with starting with a handcart or hired pickup, just don’t try to cut corners with cheap wrecks.

If you can afford to hire a pickup, invest in heavy duty ropes to secure the garbage  and avoid getting into trouble for littering along the way.

The waste you collect can also be put to different uses. For instance, you can focus on recycling plastics or glass and sell them on to packaging industries. Scrap metal can also be gathered and sold to recyclers. Additionally, some old electronics and appliances can be repaired.

Seven years ago, Mr Nick Oticha and five of his friends were broke and unemployed, and spent their time roaming around Nairobi’s Umoja 1 estate.

They had several good business ideas, but lacked the capital to implement any of them. The group, however, did take notice of the garbage that was scattered around the estate.

“We figured that instead of hovering around bus stops and going home without a penny, we could charge residents Sh20 per house to sweep their compounds and collect rubbish,” says Mr Oticha.

Scaling up

The residents were happy to part with the cash in exchange for a clean environment.

After a few months, the group started slashing grass in residents’ backyards and also offered fumigation services.

“We charged a minimum of Sh30 per home when we slashed grass, though this was subject to the size of the area. We also fumigated houses at Sh700, a task that we performed twice in each house,” Oticha says.

They later bought polythene bags and started distributing them to residents to help with trash collection. They also raised their charges to Sh100 a month.

“This was back in 2007. We would collect garbage for about 100 houses. Our business grew so rapidly that we moved from using handcarts to transport the trash to dumpsites to hiring small trucks.”

Oticha adds that the group ploughed back most of their profits into the business.

“For about the first four years, we never allocated salaries to ourselves. The little we made was used to make the business steady,” he says.

The group, now dubbed the Vijana Youth Cleaners, has expanded to not only offer their services in Umoja but also areas around Donholm estate and to a variety of companies. The group says it rakes in more than Sh300,000 a month.

Another success story is Lorna Rutto’s. The former slum dweller, who is in her early 30s, has created more than 500 jobs and prevented more than 250 hectares of forest degradation by recycling plastic to manufacture durable and environmentally friendly fencing posts.

Ms Rutto has been featured in various media after her company, Ecopost Limited, clinched major deals and received grants worth millions of shillings to expand.

“I started this as a recycling project working with boys who would pick up discarded plastic in Nairobi’s Industrial Area,” she says.

Today, the firm has grown and helped reduce the plastic waste in the capital city’s streets and landfills.

“The plastic is processed and transformed into fencing posts that provide an alternative to timber, and thus prevent the cutting down of trees.”

Ecopost has contracted hundreds of women as casual labourers to collect plastic waste, which the firm buys by the kilo.

Creating publicity

For your business, consider asking clients if they have non-trash items to dispose of like old books, clothes or furniture. You can sell these items for a supplementary income.

To create publicity, door-to-door advertising works, as does circulating flyers.

Good markets include schools, especially when they have special events such as a visiting day; homes where someone is moving in or out; churches on Sundays or special events; and carpentry businesses.

Oticha, however, cautions that there are challenges in the business. They include clients who move out of premises without paying garbage collection fees, and the presence of cartels at dumping sites.

For contacts or information on the companies profiled, email bizbeat@standardmedia.co.ke