To start and run a profitable butchery business in Kenya, you need to know what it is about the idea. 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 have the 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 to its success. The size of your business and its location will determine the startup capital. Ideally, you can start with Ksh 50,000 capital in a semi-urban area.
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 breakdown of the equipment and startup capital 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 of 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. The price also varies from one county to the other.
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.
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 idea. You will be 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 getting 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.
How to Price Your Meat
Meat prices vary from one place to the other depending on supply price, time of the year, and meat availability. Normally, beef meat costs between Ksh 350 and Ksh 450 depending on the location. Consider your location and 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' price.
How Profitable is a Butchery Business 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. If 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. This way, you can earn more than Ksh 40,000 profit in a month.
Summary of How to Start a Butchery Business in Kenya
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. I hope you now know how to start a butchery in Kenya.