Milk and other dairy products are essential food products in Kenya. This makes milk a highly valued commodity in most families. As such, starting a milk bar business in Kenya is a profitable venture. In this article, we will show you how to start a milk bar business in Kenya, requirements and costs.
Prepare a Milk Bar Business Plan
Developing a well-thought and detailed business plan is a crucial step to the success of your business. A business plan acts as a guideline and reference point for your business needs and requirements. Things to include in the business plan include:
- Milk bar business location
- How many liters of milk to sell per day
- How much money you need to start and run the business
- Business licensing
Identify a Suitable Milk Bar Business Location
It is important for any business person to identify a suitable business location for their business. In the case of a milk bar, your business premise should be well lit and ventilated, and have a steady supply of water.
It is advisable to establish your business in highly populated areas, near households in order to get many customers. Since milk is highly perishable, you strive to sell it within a day.
Find a Reliable Milk Supplier
Large scale dairy farmers are the most reliable milk suppliers because they can supply you with enough milk. It is also important that you find a trustworthy milk supplier who will not mix milk with water. Go for milk supplier with fairer prices so that it easy for you to set lower prices than your competitors and leave you with a significant profit margin.
Get the Necessary Milk Bar Business Licenses and Permits
There are several requirements for starting milk bar business in Kenya. First, you need to apply for business licenses and permits before you can start milk bar business in Kenya. You need the following permits and licenses:
1. Single Business Permit. You can obtain it from county offices. The cost depends on the size of your business and county. Different counties have different fees for single business permits.
2. Kenya Dairy Board Permit (KBD) Permit. The first step is to contact the nearest Kenya Dairy Board office to obtain a notice of inspection of your business premise. This is followed by an inspection of your business premise to determine whether your milk bar business premise complies with the laid out hygienic and operational requirements. If everything is in order, you can apply for the permit online at the Kenya Dairy Board Portal.
You will be required to provide your PIN certificate, ID card, a copy of your business registration certificate, medical certificate of milk handling personnel, and proof of pasteurization. The Kenya Dairy Board Permit costs about Ksh 5,000.
3. Public Health Certificate. Milk is a foodstuff and any business handling foodstuffs must have a public health certificate to show that the business meets all hygienic standards. A county official will visit your business premise for inspection and if he is satisfied, he will issue you the certificate.
Also read: How to start yogurt business in Kenya.
Launch your Milk Bar Business
After making sure that everything is in place, you have prepared a business plan, found a suitable business location, identified a reliable milk supplier, and acquired the necessary permits and licenses, it is time to launch your milk bar business. Make sure you operate in a clean environment to avoid contamination. To retain existing customers and attract new ones, it is important that you offer excellent customer service.
Market your Milk Bar Business
After launching your milk bar business, people need to know that your business exists. As such, you need to market your business. You can do that by word of mouth, distributing flyers and pamphlets to passersby or sticking them in public areas.
When you offer excellent customer service, your existing customers will tell their friends and family about your business. You can also market your milk bar business through social media to reach more people.
Cost of Starting a Milk Bar Business in Kenya
Startup cost of a milk bar business in Kenya depends on the size of your business, number of customers you intend to serve, and the equipment you intend to use. For a milk bar business, you need between Ksh 350,000 and Ksh 800,000. The following is a break down cost of starting a milk bar business:
- Premise rent – Ksh 15,000
- Business Licensing – Ksh 20,000
- Marketing – Ksh 10,000
- Milk stock – Ksh. 10,000
- Branding – Ksh 10,000
- Milk pasteurizer machine – Ksh 250,000
Is Milk Bar Business Profitable in Kenya?
Yes. Since milk is an essential product in most Kenyan families, the demand is high. In most places, you will be buying a liter of milk from suppliers at Ksh 40.
Depending on your location, you can sell a liter of pasteurized milk for between Ksh 60 and Ksh 70. Let’s say if you sell 200 liters per day, you will make Ksh 12,000 to Ksh 14,000 per day. Your profits will range between Ksh 4,000 and Ksh 6,000 per day.
Summary of How to Start Milk Dairy Shop in Kenya
A milk bar business is a profitable business in Kenya. However, to ensure that you remain in business, you need to maintain high standards of cleanliness and hygiene in your business premise. You must also sell milk that is not mixed with water or contaminated. Then, offer excellent customer service to keep your customers coming back.