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Here is the truth; starting a bakery business in Kenya can be very rewarding. If you didn’t know, this is one of the most profitable ventures you can start, even as a side hustle.
But there’s a problem. Starting a bakery might not be as easy as it sounds. There are several things you’ll need to understand before getting started. For instance, you’ll want to know what your customers need, the equipment to use, the most profitable products, and how to find the right location, licenses, and permits… it can all be frustrating if this is your first business venture.
But don’t worry. We have done our research and are going to show you exactly how to start a profitable bakery business in Kenya. We’ll show you what equipment you need, how to find a good location, how to register your business and get the necessary licenses and permits, and so on.
Yes, a bakery business can be profitable in Kenya. According to reports, the bakery industry in Kenya has grown significantly compared to 10 years ago. People are depending on baked goods even more; so turning a profit is not going to be a big problem.
However, like any business, profitability is not guaranteed even though there is an insatiable market demand. The amount of profit you make will depend on several factors such as:
Here are the exact steps you should follow when setting up your bakery business:
If you don’t know how to bake properly, then you need classes. The secret to acquiring an impeccable clientele base is to give them exemplary sweet treats. There is no need to have a client list before starting the enterprise.
When your first customers love what you are serving, they refer their family and friends to you. In a considerable period, the business will be booming. Baking classes are not very costly and do not take very long either.
If you trust your wits, try tutoring yourself with YouTube videos to perfect the art. Some good bakers are fully self-taught, it is not mandatory to go to school for it. However, it will cost you less than Ksh.20, 000 if you decide to get the classes.
Some of the best schools to learn baking in Kenya include:
Alternatively, you can find someone already in the business to train you. You can work under them for some time as you learn, then start your own business when you are confident in your skills.
First, you do not have to register your small bakery as a limited company. However, you still need to do online registration of your business name on Ecitizen. This will cost you Ksh.1000. The process is simple and has minimal waiting time.
Registering your business does not only make it legit, but it also allows you to brand your products too. On top of that, you will need a business permit. Most business owners get permits from their local county government. The cost varies from one county to another, considering the type and location of the business.
Apart from that, you will also need to acquire some licenses. These are:
This certificate shows the whole premise is kept clean and hazard free. It ensures your clients that where you store and bake your goodies is up to standard. A Food Hygiene Certificate goes for a minimum of ksh.300 and is valid for one year.
Whether you plan to have an employee or not, you need to ensure everyone involved in the baking process is free from diseases. That is where this certificate comes in. It is renewable every six months and costs Ksh.600.
Most of the appliances you will use to bake use electricity. Therefore, you need to prepare yourself beforehand in case of a fire hazard adequately. This certificate is valid for one year and goes for Ksh.3 000.
Once you start making good returns, you can register it as a limited company for about Ksh.30, 000 and get a KEBS license for around Ksh.20, 000. This will turn your small bakery business into a fully-fledged business.
A small bakery does not need a lot of space. If you are on a tight budget, you can start baking from the comfort of your home. That way, you save some money on business permits and licenses. On the other hand, you can get a small room in a busy area for rent for Ksh.10, 000 or less.
If you rent a space, you must make it fit for baking. There are various bakery setup options; choose the one that suits you best. After setting that out, you must furnish it with the right, functional bakery equipment. More on that is below.
One rule in business is you should never get more than necessary for a startup. On this basis, we will divide our basic bakery equipment into three categories. That is;
Mandatory electronics include an oven, electric hand mixer, and fridge, among others. The oven is the most expensive item on the list, going for about Ksh.20, 000 to Ksh.30,000. You can start with a small fridge which you will get for less than Ksh.20, 000.
The electric hand mixer will cost you around Ksh.4, 000. In total, you will spend roughly Ksh.50, 000 on appliances only.
There are several utensils you should buy. They range from baking pans to icing spatulas to a nozzle set to measuring cups. On average, you will use about Ksh.10, 000. That will cover these and any other essential utensils you will need.
Before getting the ingredients you need, you should figure out which baking niche you will be flowing with. Do you want to bake cakes only? Which type of cake? Will you mix with cupcakes, cookies, doughnuts, brownies, and rolls, for example?
Once you answer these questions, proceed to get whatever you may need. Survey the market, and go for the best deals you will find. Some basic ingredients every baker needs include:
While it is better to buy in bulk at lower prices, remember not to purchase more than what you need for a certain period. You will need a total of around Ksh.15, 000 for all the basic ingredients.
Currently, most bakers prefer to use an electric oven. That means your electricity bills will shoot up. So it is important that you put this into consideration while budgeting. You will also need to publish some fliers or brochures for advertising and showing the options you have to offer.
Not forgetting packaging materials and labels, among other subtle things you might need as you work. Finally, you will need to look the part. Get a good apron and a chef’s hat for you and any other employee you will have aboard. The cleaner and more professional you look, clients will trust your bakes.
Once your certificates, skills, location, and basics are in check, open up immediately. Sometimes the best way to learn is on the job, so don’t procrastinate. Once your business is up and running, here are a few tips you can borrow:
So there you have it, all the know-how on how to start a small bakery in Kenya. As long as you check on all the factors above, you will be off to a good start. When you eventually start, keep the tips handy and watch your small bakery grow commendably.