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Businesses in funeral industry flourishing as families splash millions

Some families have been throwing massive feasts as a way of giving their departed loved ones a ‘befitting’ send-off.

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by STAR BUSINESS TEAM

News17 February 2025 - 05:00
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In Summary


  • According to a study by Ipsos commissioned by the Association of Kenya Insurance, the average funeral budget for a middle-class family in Kenya is between Sh50,000 and Sh300,000.
  • The costs increase if there are extended hospital stays, with more elaborate funerals costing up to Sh2.5 million.

Tombstones on display for sale on Brookside Drive in Westlands, Nairobi, yesterday /ENOS TECHE



Watching the burial of religious leader and businessman the Aga Khan IV in Egypt last week brought out a picture of how one can be sophisticated in life but take a very quite exit upon death.

However in Kenya, death has become a big industry, and if death were to die today, it would go with a lot of businesses, which hundreds of households depend on to put food on the table.

The funeral industry in Kenya has in recent years grown into a booming business as individuals and companies cash in on the sector amid hefty spending by family and friends.

At a recent burial of a friend’s father in Western, you could for sure tell the family had spent millions.

From mortuary expenses in Nairobi and Kisumu, casket, transport costs (both vehicles and flights), to tents, chairs, public address, funeral programmes, the church choir in the village and catering services, where the family fed tens of hundreds of mourners, among other expenditure.

From buying gem-encrusted coffins and designer outfits to slaughtering tens of animals and spending on other foods and drinks, some families have been throwing massive feasts as a way of giving their departed loved ones a ‘befitting’ send-off.

According to a study by Ipsos commissioned by the Association of Kenya Insurance, the average funeral budget for a middle-class family in Kenya is between Sh50,000 and Sh300,000.

The costs increase if there are extended hospital stays, with more elaborate funerals costing up to Sh2.5 million.

Many businesses thrive during times of death, including funeral homes, crematoriums and casket manufacturers.

Other businesses that benefit from funerals include insurance companies, caterers, printers, media houses and burial services.

A sales executive in one of the media houses said death announcements is one of their major revenue streams.

The smallest advert costs about Sh30,000, with the most expensive, which is a full page, being sold at Sh400,000.

“On a good day, death announcements alone can bring in close to Sh5 million,” the executive said.

One of the SMEs that has been in the trade for long is Jaluki Funeral Services in Nairobi’s Huruma Estate, near the Dandora-Kariobangi roundabout on Outering Road.

James Chege, the proprietor, said his business comprises coffin making and selling, hearse business, public address, tents and other burial services.

When business is good, he can make up to Sh200,000 per month, he told the Star during an interview at his shop on Friday.

“On a bad month, maybe around Sh100,000. It is just a business like any other, but location and how you deal with your customers matters a lot,” he said.

However, the cost of production, mainly material, has increased, which is eating into his bottom line. These include coffin handles that are mostly imported from China, shroud (clothing used inside coffins), varnish, nails, timber and other material.

For instance, timber prices have increased by about 64.7 per cent in the last three months.

“We used to buy a 12-foot piece at Sh1,700, but it has gone up to Sh2,800,” he said.

“Everything is very expensive now. This means we have to increase our prices if we are to make a profit.”

High taxes are affecting the business.

“If they can lower the taxes on raw materials, then it can help businesses cut costs,” Chege said.

Elizabeth Mutio also sells coffins in Nairobi and has been in the business for six years.

Prices range between Sh10,000 for the cheapest and Sh150,000 for executive caskets. The business is seasonal, she says. Sometimes they make good money and other times, the earnings are low due to fewer clients.

There is also increased competition in the coffin-making and selling business, she said.

“But I appreciate as this is the business that has helped me fend for my family. In a week, I can sell at least two coffins, but this goes higher at times,” Mutio said.

She also wishes for a reduction in taxation to help cut operating expenses.

The hearse business, on the other hand, has been Bernard Njuguna’s main source of income for the last 15 years.

Within Nairobi where Lang’ata Cemetery is the main burial place, he makes at least Sh8,000 per client, which includes transportation and lowering gear.

There are days he makes more than one trip. The rates change when you move outside Nairobi. For instance, Thika is Sh10,000 on average and Murang’a Sh15,000.

For further distances, such as Western Kenya and Nyanza regions, prices depend on the number of days they are offering their services, with most being three days between Friday and Sunday.

For a trip to Siaya, for example, Njuguna makes Sh40,000 for a round trip on a seven-seater van. Her charges Sh100,000 for a 51-seater bus, Sh80,000 for a 33-seater, while an 18-seater bus costs Sh50,000.

“This is the business that has helped me educate my children, pay rent and other expenses,” he said. Business is low so far this year, however, Njuguna said, adding that his customers are decrying tough economic times.

“Nowadays you find someone has died in Nairobi, the family cannot afford mortuary expenses in the city and final transportation of the body for burial,” he said.

“What some people do is they look for a personal car, dress the dead well, cover them nicely, belt them up on the seat and transport them to the village, where they then look for a cheaper and closer morgue. “Life has become tough, so it is one of the ways people are cutting on burial costs.”

An influx of players into the hearse business has increased competition, which has reduced earnings. Njuguna said there was a lot of investment in the hearse business during the Covid-19 pandemic.

He wishes the cost of fuel could drop to ease operating costs, benefits of which he says would be passed on to their customers by cutting transport charges.

“Someone would think we make a lot of money because of the high quotation but the profit margins are low,” he said.

Poor infrastructure is also a challenge in some interior regions, he said.

Monthly, he rakes in between Sh30,000 and Sh40,000 in profit “During Covid we made good money, but now business is low,” Njuguna said.

The morgue business is also big in the country, with the likes of Montezuma Monalisa Funeral Home existing for more than three decades now.

Although it started as a funeral transport firm in 1992, the firm has grown to be one of the leading companies in the provision of hearse, coffins and burial services to local and international clients.

A senior official at the firm told the Star they are the first company in Africa to come up with a custom-built passenger hearse.

“We have a fleet of various capacities, among them 34-seater and 40-seaters, funeral limos and passenger hearses with special coffin compartments,” he said.

“These hearses have made funeral transport more manageable as it is more cost-effective.”

He said the business follows economic trends in the country, with revenue currently lower compared to five years ago.

“Disposable income has been dropping in the country, hence a direct impact on our books,” the Montezuma official said.

“Our innovative nature has, however, seen us relook at our pricing model to come up with unique product offerings to cater to our diverse clientele.” Evelyn Nthenge, who is based near Huruma Police Station in Nairobi, is another trader who makes a living from the funeral industry.

Her business, Exodus Funeral Services, deals in funeral floral arrangements, including funeral bouquets.

She has been in the business since 2020. Prices range between Sh3,000 and Sh20,000, with sales depending on the number of clients she gets.

“This business has helped me fend for my family, pay rent and other expenses. Nobody wants people to die, but when people die, we get business,” Nthenge said.

She says during the Valentine’s period she has a problem sourcing for flowers as suppliers push volumes towards Valentine’s-related sales “They tell us there are no flowers and if you get, the prices have tripled. For instance, what we normally buy at Sh200 now goes for Sh600,” she said.

*Achieng (not her real name) makes a living by providing catering services at funerals. The Siaya-based businesswoman charges depending on the number of visitors. “We usually charge Sh20,000 per cow, so if we slaughter four cows, for instance, that is Sh80,000, and we will come with everything we need. We slaughter, cook and serve the visitors,” she said.

For tents and chairs, she charges Sh2,500 per day for a 100 seating capacity and Sh1,500 for a 50-seater capacity tent.

“In case a seat breaks during your function, you compensate by paying Sh800 to buy a new one,” she said.

The race to give family and relatives a decent send-off has also seen new welfare groups come up to cash in on the thriving enterprise.

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