How To Set Up Your Own Bakery Business In Kenya

For ‘young’ people, starting your very own business and becoming self employed is the most suitable alternative to the ever growing hard to get 9 to 5 jobs. Starting a business is always the best alternative to the ever elusive jobs.

A survey by the Kenya National Bureau of Statistics (KNBS) revealed that seven (7) million Kenyans are unemployed. An additional figure of over 1.4 million are actively looking for employment. With those figures, it is easy to see why more and more people are looking for alternatives.

Because we know very many business ventures require huge amounts of capital to get started, this new How To series will only show you how to start and execute several small business that require capital from as little as 5,000 Kenyan Shillings. Thus giving you the keys to the kingdom of starting a profitable business with little or no capital.

If you are also just looking for a side hustle to maybe supplement your 9 to 5 or full time job, this is for you.

All that you need to thrive in these businesses besides capital, is good customer service of course, great managerial skills, a suitable business location, and a clear cut vision.

Today’s article will show you how to set up your very own Bakery business in Kenya. While this is not exactly a 5,000 Kenyan Shillings capital business, I am sure you would agree that this is also a very viable option.

Starting a bakery business even a small one, is a very profitable venture if you know how to properly carry it out. This is because in Kenya, baked goods are in very high demand and sell out quite fast. You also do not need a lot of formal training, but you should of course take baking classes to sharpen your skill and properly learn the ins and outs.

How To Start A Bakery Business In Kenya

How much do you need to start a Bakery business? What paperwork, and or equipment are you required to have in Kenya? If you are considering this option, here is everything you will need to kickstart your Bakery business in Kenya.

1. Capital. Setting up a bakery even a small one, would need capital. We are looking at anything from 100,000 Kenyan Shillings, to 150,000 Kenyan Shillings to cater for everything that you will need to get started.
2. Register The Name Of Your Bakery Business. You will need to register the name of your bakery startup if you plan to run it as a legitimate business. The business name registration would cost you around 1,000 Kenyan Shillings.
3. Register Your Bakery As A Limited Company. Doing this, will cost you an estimate of around 30,000 Kenyan Shillings.
4. Secure a Kenya Bureau of Standards (KEBS) License. This will cost you an estimate of around 20,000 Kenyan Shillings.
5. Secure A Single Business Permit. The cost for this varies and depends on the particular county that your business would be located at.
6. Secure A Food Handling Medical Certificate. This basically confirms that anyone handling your baked food including you and your staff, is free from any diseases that can contaminate said food. A Food Handling Medical Certificate costs 600 Kenyan Shillings and is valid for 6 months.
7. Secure A Food Hygiene Certificate. This costs 300 Kenyan Shillings depending on the size of your business, and is valid for an entire year.
8. Secure A Fire Safety Certificate. This costs 3,000 Kenyan Shillings and is valid for a period of 1 year.
9. Create A Baked Goods List. Make a list consisting of all of the baked goods that you would like to sell. It is advisable to start small and diversify later so as to help you ease into it.
10. Source For Your Ingredients. Make sure that you source for and buy all the ingredients like sugar, milk, flour and eggs, that you will need. A crate of Eggs cost anything from 300 Kenyan Shillings to 360 Kenyan Shillings or higher, a carton of margarine goes for around 2,000 Kenyan Shillings, Wheat Flour costs 1,400 Kenyan Shillings per bale, a box of Milk costs around 500 Kenyan Shillings, 50 KGs of Sugar go for around 7,000 Kenyan Shillings, 4 KGs of Baking Powder cost 500 Kenyan Shillings and 5 KGs of Icing Sugar, cost 850 Kenyan Shillings. Please keep in mind however, that the prices might be higher or lower.
11. Decide Your Pricing. When doing this, please put into consideration, your labor, logistics expenses, as well as the cost of the ingredients used.
12. Secure Packaging For Your Baked Goods. Source for and buy packaging materials like boxes, as well as labels, as you will need them when delivering your baked goods.
13. Figure Out Your Target Market. For example, Baked goods are in high demand around places with schools, offices, kiosks, and university canteens. Knowledge like that, should and will help you figure out your target market or demographic.
14. Plan Out Your Marketing. Next after figuring out your target audience, should be planning out your marketing. Learn how to get the attention of your target market. Would discounts work? Or referrals or both? How about posters, sponsored adverts on social media and fliers. Find out what is most effective for you and use that or a combination of all of them.
15. Talk To Others Who Have Done This Before You. No man is an island. Talk to entrepreneurs who have gone into or are still in the bakery business. You never know, you just might pick up one or two nuggets of wisdom from them.

And that is it! All you need to know about starting your very own Bakery business. Depending on the demand for your baked goods, you can make as much as 5000 Kenyan Shillings per day. Cool right?

Baked goods are at the end of the day, perishable. It is important to always sell them to customers when they are fresh. This not only scores you points with the customers, but also prevents health issues and potential lawsuits. The fresher the better.

Is the Bakery business suitable for you? That question, is left for you to think on and answer. This writer’s goal is to open your eyes to the various entrepreneurial opportunities that abound in the country.

Also while the prospects are very promising please have a realistic approach as well. As with any business, there is a chance that you might incur losses. Especially at the beginning, so please keep your overheads low.

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