To start and run a profitable butchery business in Kenya, there is a lot you need know before starting. The butchery business is a profitable venture since many people love eating meat, whether it is nyama choma, wet fry, meatballs, or mshikaki. To make money, you need to know how to run a butchery business.
The cost of starting a butchery in Kenya depends on the size and business location. This is what you need to know about butchery business in Kenya.
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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 in Kenya should have the startup budget, business location, target customers, projected revenue and suppliers. With a good business plan, you can manage your business and forecast how much it will generate monthly. A good butchery business plan should have the following.
Butchery Business Startup Capital
The cost of starting and running a butchery business is a key factor to its success. Your business location and the size of your butchery business will determine the startup capital. Ideally, you can start a small butchery business with a capital of Ksh 50,000 in a semi-urban area.
To start a medium butchery business, you will need at least Ksh 250,000 in major towns like Nairobi, Nakuru, Mombasa, Eldoret and Kisumu.
Read more: Sources of business startup capital.
Requirements for Starting a Butchery Business in Kenya
How much would it cost to start a butchery in Kenya? Below is the breakdown of the startup capital for the butchery business in a medium town.
- Display counter Ksh 50,000
- Weighing scale Ksh 5,000
- Fridges and freezers Ksh 40,000
- At least two Knives Ksh 1,000
- Butchery hooks Ksh 2,000
- Wooden lump Ksh 2,000
- Monthly rent Ksh 20,000
- Business licenses Ksh 20,000
- Wrapping material Ksh 2,000
- Butchery coat Ksh 1,000
- Meat stock 150 Kg Ksh 75,000
Business Licenses and Permits
To operate a legal butchery business, you need licenses and permits. For instance, you will need health certificate from health officials. The cost 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 roughly Ksh 10,000 per year, but the price also varies from one county to the other.
You will also need a food handling certificate that costs Ksh 600 for six months. There are other licenses you may need, like advertising and signage licenses.
Butchery Business Location
The location of your butchery business determines how many customers you will attract. A good butchery should be located in a high traffic area near residential areas. Look for a place with a high number of on foot traffic and households nearby.
Setting up your butchery business near another business like a supermarket is a great idea. You will be getting customers from the other business. Once you get a stall for your butchery, renovate and rebrand it.
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Securing a Butchery 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 and the type of meat you want to sell. It can be beef, pork or mutton. Prices vary from one place to another. There are many slaughterhouses across the counties like Kajiado, Murang'a and other areas.
How to Price Your Meat
Meat prices vary from one place to another depending on supply price, time of the year, and meat availability. Normally, beef meat costs between Ksh 250 and Ksh 350 depending on location. Depending on your location and meat supply price and other expenses, you can price your meat using 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 what your competitors' price.
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Is Butchery Business Profitable in Kenya?
Yes. Assuming you are buying meat from a supplier at Ksh 250 per kilo and you sell it at Ksh 350, you will be making a profit of Ksh 100. Assuming that you can sell 100 kilo grams in a day, you will have made a profit of Ksh 10,000. In a month, you will be making a profit of Ksh 30,000.
You can increase your profits by selling bones, mutura and cooked meat. It means that you can make more than Ksh 40,000 profit in a month.
To succeed, you need to know how to run a butchery business in Kenya. Maintain hygiene by ensuring that your coat is clean and 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 in Kenya.
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