Professional laundry services in the country are expected to surge by the end of 2023, market research findings now indicate.
This is on account of rapid urbanisation, making Kenya’s commercial laundry industry one of the most attractive industries for entrepreneurs and investors.
LG Electronics EA Managing Director Dongwon Lee says the commercial laundry industry has shown remarkable resilience and consistent growth over the recent past.
Globally, data from research firm SkyQuest shows that the global commercial laundry market size is poised to grow to $1.89 billion (Sh267 billion) by 2030 up from $1.45 billion (Sh205 billion) in 2022 at a Compound Annual Growth Rate of 3.4 per cent between 2023 -2030.
“The growing reliance on laundromats as a convenient and time-saving solution presents an exceptional opportunity for investors to establish highly profitable ventures. Today's consumers value convenience and quality, and by investing in the commercial laundry sector, entrepreneurs can cater to these demands while providing top-notch services,” said Lee.
It currently takes between Sh1.5 to Sh2 million to set up a laundromat.
This amount is inclusive of the costs of about two to three sets of washing and dryer machines.
Lee said that a collaboration between Hotpoint and LG has been successful in scaling the investments in laundromats since a pilot project three years ago.
“We have witnessed over 100 laundromats open up in different parts of Nairobi,” he added.
Hotpoint Head of B2B and Air Conditioning Business Ravi Kanani said that about 1000 new laundromats will open up across the country over the next three years, as they are not capital-intensive for the investors.
“To date, through strategic partnerships, the company has contributed to the roll-out of laundromats in Nairobi different estates like Langata, Buruburu, TRM, Waiyaki Way and Hurlingham among others,” said Kanani.
The two were speaking during a seminar organised by LG Electronics East Africa.
