Everything You Need To Start A Milk Business In Kenya

Milk Business In Kenya

Starting a milk business in Kenya has been considered to be a rewarding venture. This is so, because of its daily demand and use in every household.

However, this has presented an opportunity for you to invest in the dairy market by starting a milk business.

In this article, we are going to unleash information such as the types of milk business, profitability, required capital, business plan, location, supplier, licenses & permits, and business branding. We are going to explain them accordingly so that you will be equipped on how to get started.

Read on as you are about to get an insight into everything you need to start a profitable milk business in Kenya.

What Are The Types Of Milk Business In Kenya?

Below are the different types of milk business in Kenya:

1. Dairy Farming: Dairy farming is a type of milk business that involves the raising and management of cattle for milk production.

2. Milk Vending Business: Also known as milk ATM business is the use of milk vending machines to supply milk for profit.

3. Milk Distribution And Wholesaling Business: This business involves the distribution or selling of processed milk products to retailers or even to consumers most times.

4. Milk Retailing Business: Milk retailing is the type of milk business that sells dairy products to the final consumers. Examples of milk retailers are grocery stores, dukas, supermarkets, etc.

5. Milk Exporting Business: Milk exporting business is a business of exporting the milk produced here in Kenya to another country for profit.

What Is The Prospect Of Milk Industry In Kenya?

According to “Statista”, the revenue in the milk market industry in Kenya amounts to US $1.59bn this 2024. The market is expected to grow annually by 7.07% (CAGR between 2024 and 2028).

Is Milk Business Profitable In Nairobi?

Yes, the milk business is very profitable in Nairobi and even Kenya as a whole. This is because milk is one of the fastest-selling products in Kenya and it is demanded by so many people. Either for preparing teas or for other purposes like taking it raw and even for health purposes.

Almost every household makes use of milk daily and weekly. However, with all these demands, the milk business has become a profitable business in Kenya.

So you should get started after meeting up with the requirements.

Do You Need A License To Sell Milk In Kenya?

If you want to operate a milk business in Kenya be it any type of milk business, you need to have a license. One of the licenses is the food handling license, with this license, you can sell anything food product, and milk is included.

However, you will need to apply for the license from the Ministry of Health by paying the required fee for it.

How Much Does It Cost To Start A Milk Business In Kenya?

The cost of starting a milk business in Kenya depends on the type of milk business you want to start and the size you intend to operate. Meanwhile, starting a retail milk business will cost you at least Ksh 100,000, while starting a wholesale milk business in Kenya will cost you between Ksh 350,000 to Ksh 500,000.

How Can One Start A Milk Business In Kenya?

Here are the steps to start a profitable milk business in Kenya:

1. Get Your Capital Ready: The first step to starting a milk business in Kenya is to get your capital ready. We have already mentioned the required amount needed to start a milk business which ranges from Ksh 100,000 to Ksh 500,000 depending on the type of milk business you want to start.

2. Develop A Business Plan: A Business plan is very vital for the successful running of your business. And with how to start a milk business in Kenya, it is very essential to develop a business plan stating all the necessary components to run your business including competition, demands, challenges, pricing strategy, and marketing strategy to your plans.

3. Find A Good Location And Rent A Shop: When looking for a location be sure to look for available places with a high population. And it must be noticeable to the public. That is to say that the location where you will rent your shop must be visible and accessible. Also, the environment should be good for a milk business.

4. Find A Supplier: At this stage, you have to get a supplier that will supply you with quality and fresh milk. It is very important to source your milk directly from the dairy farm for reliability and fair prices. With this, you are at the advantage of making more profits.

5. Apply For Licenses And Permits: The next thing to do is to apply for a business license and permits to operate your business legally.

So you need to obtain licenses and permits like single business permits, public health certificates, food handling licenses, and Kenya Diary Board (KDB) permits.

6. Business Branding: Branding is fundamental to your milk business to attract a lot of customers. To do this, you have to use billboards to display your business services. Also, have a signpost bearing the name of your business and what you offer.

You can also build an online branding by creating a website and business page to draw in customers. Most importantly, work on a good customer relationship.

Conclusion

A milk business is a profitable business in Kenya that requires you to have a good marketing strategy to stand out from the competition. Therefore, you have to ensure that you take the marketing of your business seriously to grow a large customer base.

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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