How to Start a Butchery Business in Kenya

To start and run a profitable butchery business in Kenya, you need to know what the idea is about. A butchery is a profitable venture since many people like eating meat, whether it is nyama choma, wet fry, meatballs, or mshikaki. The cost of starting a butchery in Kenya depends on the size of the business and its location.

A Guide to Starting a Butchery Business in Kenya

The first consideration before starting any business is to have a business plan. A butchery business plan should include startup costs, business location, target customers, projected revenue and suppliers. With a good business plan, you can manage your business and forecast how much it can generate monthly. 

Raise Startup Capital

The cost of starting and running a butchery business is a key factor in its success. The size of your business and its location will determine the startup capital. Ideally, you can start with Ksh 100,000 in semi-urban areas.

To start a medium butchery business in major towns like Nairobi, Nakuru, Mombasa, Eldoret and Kisumu, you will need at least Ksh 250,000.

Requirements for Opening a Butchery in Kenya

The following is a list of equipment needed to start a butchery business in a medium-sized town in Kenya.

  • Display counter - Ksh 50,000
  • Weighing scale - Ksh 5,000
  • Fridge or freezer - Ksh 40,000
  • Butchery hooks and Knives - Ksh 2,000
  • Wooden lump - Ksh 2,000
  • Monthly rent - Ksh 10,000
  • Business licenses - Ksh 10,000
  • Wrapping material - Ksh 2,000
  • Butchery coat - Ksh 1,000
  • Meat stock, 50 Kg - Ksh 15,000

Business Licenses and Permits

To operate a legal butchery business, you need licenses and permits. You will need a health certificate from health officials. The cost of a license varies from one County to the other, but it is roughly Ksh 5,000 annually. You will also need a single business permit that costs around Ksh 10,000 per year. 

You will also need a food handling certificate that costs Ksh 600 every six months. There are other licenses you will need, like advertising and signage licenses.

Identify a Good Business Location

The location of your butchery determines how many customers will visit. A good butchery should be located in a high-traffic area near residential areas. Look for a highly populated area and a place with many households.

Setting up your butchery business near another venture, like a supermarket, is a great business idea. You will get customers from the other businesses. Once you get a stall for your butchery, renovate and brand it.

Secure a Supplier

You need to find a reliable meat supplier near your business location. It is essential to minimize transportation costs. If you can secure a steady and cheap meat supply, then you are on the right track to making profits from your business. If you are within Nairobi, some of the best meat suppliers are in Kiamaiko and the Nairobi City Market.

Decide on the kind of meat you want to sell. It can be beef, pork or mutton. Their prices vary from one place to another. There are many slaughterhouses across the counties, like Kajiado, Murang'a and other areas.

Read also: How to start nyama choma business in Kenya. 

How to Price Your Meat

Meat prices vary from one place to another depending on supply, time of year, and meat availability. Normally, beef meat costs between Ksh 350 and Ksh 450, depending on the location. Consider your location, meat supply price and other expenses. You can set the meat price at a 20% profit margin.

However, if you are in a high-end town, you can price your meat at Ksh 500 per kilogram. A kilo of a goat can go for Ksh 600. However, consider your competitors' prices.

For business consultancy, strategic planning, organizational development, market research, financial management & accounting, risk management and business plan writing at an affordable fee, please reach out to us through a phone call 0728 621 138, WhatsApp, or email: vincent@nexinstartups.com

Is Butchery Business Profitable in Kenya?

Yes. Assuming you are buying meat from a supplier at Ksh 350 per kilo and selling it at Ksh 500, you will be making a profit of Ksh 150. If you can sell 100 kilograms in a day, you will have made a profit of Ksh 15,000. In a month, you will make a profit of Ksh 30,000.

You can increase your profits by selling bones for soup, mutura and cooked meat. This way, you can earn more than Ksh 40,000 profit in a month. 

Summary

To succeed, you need to know how to run a butchery business in Kenya. Maintain hygiene by ensuring that your coat is clean and that you wash your hands before serving a customer. The meat business in Kenya is one of the most profitable ventures. The demand for nyama choma makes it one of the best startups. I hope you now know how to start a butchery in Kenya. 

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