Everything You Need To Start A Grocery Business In Kenya

Grocery Business In Kenya

The grocery business is one of the most lucrative businesses that anyone can run in Kenya today. This is a result of not only the fact that groceries are in high demand but that they also get consumed regularly. This goes to show that if you are running a grocery business, you won’t just be making a steady income but you would also be making it consistently.

There are various ways in which you can run a grocery business.

You can rent a supermarket or a minimart where you sell your groceries wholesale. On the other hand, you can rent your shop where you sell in retail directly to customers after buying wholesale. Either way, if you want to start a grocery business in Kenya and you need a guide on how to go about it, then this article is for you.

In this article, we have provided a comprehensive guide on how to run a grocery business in Kenya.

Who Can Own A Grocery Store In Kenya?

Anybody can own and operate a grocery store in Kenya. Whether you are a working class, unemployed, or a student, so far as you understand the market you can start a grocery store.

As a working-class person, you can as well as open a grocery store and hire someone to be in charge while you pay him or her.

Is Grocery Store Profitable In Kenya?

One thing about Kenyans is the ability to buy whatever thing they need. Let’s just say that Kenya has a high purchasing power and this in turn makes the operating of a grocery store a profitable venture.

Also, the grocery store is becoming the most preferred place to shop for groceries, daily use products, and household goods because you can find most of the things you need at affordable prices.

Regardless, it only takes a business-minded and calculative person to thrive in this business.

What Are The Fast Moving Items To Sell In A Grocery Store?

The fast-moving and selling items to sell in a grocery store are:

  • Soap
  • Detergents
  • Cooking spices
  • Milk
  • Drinks
  • Toiletries
  • Stationery
  • Fresh and packaged food
  • Eggs
  • Wines
  • Fruit Juice
  • Snacks
  • Biscuits
  • Chewing gum
  • Noodles
  • Batteries
  • Sugar
  • Bottled water
  • Cookies
  • Chocolate
  • And anything household goods

What Are The Challenges Of Starting A Grocery Business In Kenya?

One of the major challenges of starting a grocery business in Kenya is the issue of erratic power supply. Meanwhile, you can combat this by buying a good generator to use in operating your grocery business.

Another challenge is the high competition for groceries across Kenya. This means that there will be a lot of competition to attract customers.

Also, security can be a challenge because most grocery stores have fallen victim to break-ins and theft. It is now a good idea to be security conscious.

What Is The Cost Of Starting A Grocery Business In Kenya?

A grocery business requires a significant amount of money to get started. Renting a shop, furnishing it, and stocking your shop all require money.

So on our estimate, you will need around Ksh 150,000 to Ksh 700,000 to set up a grocery store in Kenya. But bear in mind that you may spend less or higher depending on your location and the amount of goods you are stocking in your shop.

How Do I Start A Grocery Business In Kenya?

You can follow the following steps to start a grocery business in Kenya:

1. Research And Plan: Starting a grocery business requires deliberate research about the business. In truth, the chances of failure will be high if you do not do research and plan your business.

However, you have to start by conducting a physical and feasibility study of the business. This is achieved through a business plan.

In your business plan, after carrying out your research you need to outline the aims and objectives of your business, competitors, pricing, market, and marketing strategies on how to beat the competition.

2. Choose A Good Location: When it comes to starting a grocery business in Kenya the location should be the number one factor to consider. It is best to open a grocery store in urban or suburban areas.

Also, consider locating your grocery store in busy areas close to the junction, and most importantly, an area that is visible and accessible.

In addition, the size of your grocery store will be determined by the amount of goods you want to stock. So you have to be considerate in this aspect as well when choosing a location.

Then after you have paid for the shop, the next thing to do is to furnish it to your taste.

3. Obtain Necessary Licenses And Permits: To avoid having legal issues you need to ensure that you obtain the required business permit and license from the authority.

Nevertheless, you need to get licenses like a single business permit and a food safety certificate.

4. Stock Your Shop With Goods: You need to identify reliable suppliers/wholesalers that will supply you with the types of goods you want to sell in your grocery store.

However, you need to find a trusted supplier because that’s what matters most. Having a reliable one will be essential in running your business.

When you find one, reach out to an agreement with them and purchase the needed goods. Then get an arrangement on how to transport your goods to your shop. After that, you do the inventory of the goods supplied to you.

Conclusion

Most importantly, make sure you sell quality products and avoid dealing with expired goods.

Lastly, you can attract more customers by offering quality customer service and avoiding the bad use of words.

Congratulations, you are on your way to starting your own grocery business in Kenya if you follow the above steps.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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