Milk business is one of the most profitable ventures in Kenya. The process of starting this business involves a few steps and small capital, unless you intend to start an industry.
The first and most important thing to note is that you should start the business in areas where there is huge deficit of the product. Research shows that the business is most profitable in Nairobi, Kisumu, North Eastern, all parts of Mombasa, Nakuru and all parts of Ukambani.
The business is least profitable in Kisii, Bomet, Kericho, Eldoret, Kajiado and Kiambu.
You are required to have Ksh 150,000-Ksh 250,000 to launch the business. Most of this money goes to rent, license and a refrigerator.
You can obtain capital from your savings, a loan from a SACCO, Chama or from a friend. But the best place to get capital is either SACCO loan or savings.
Most SACCOS will give you a loan of up to 4 times your savings. Assuming that you save Ksh 5,000 in a SACCO every month, you will have Ksh 50,000 in 10 months. This money will earn you a loan of Ksh 200, 000, which is enough to start milk business.
This business, unlike operating a normal shop, require at least three licences.The first license is obtained from the county offices. In Nairobi, you can get it from City Hall and it costs Ksh 7,000-Ksh15, 000 depending on the size of your business.
The second license is obtained from the Dairy Board of Kenya. This license is very important, without it, law will catch up with you.
The cost of a license from the Dairy Board of Kenya is Ksh 5, 600, but the price might be reviewed either upwards or downwards from time to time.
If you want to check the price, here is their website: click here
The third and most important is a public health certificate from the county government. This license is an assurance that you will maintain high standards of hygiene as you operate the business.
Lastly, you need to set up the business. I would recommend to open the business in Nairobi, Kisumu or Mombasa, because of the high demand of milk in those areas.
Once you have set up the business, the headache is to find the source. If you are living in Nairobi, the best place to source for milk is kiambu.If you are in Kisumu, source from Kisii or Kakamega and if you are in Mombasa, you can have your milk from Nairobi or Taita.
Our survey shows that the average profit from milk each day is Ksh 3,000-Ksh 10,000.