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It’s no longer a big puzzle that butchery business is quite valuable. But, is butchery business for you? How much do you need to start a butchery venture? What paperwork, licensing, and equipment do you need for your butchery business in Kenya?
According to a recent study, the cost of starting a butchery business in Kenya varies depending on the size of the butchery and the location you choose. Either way, experts recommend that you situate your butchery in a strategic location with high foot traffic and many potential customers.
Continue reading this guide to get the lowdown on how to start a butchery business in Kenya.
Budget: How Much Do I Need To Start A Butchery Business In Kenya?
Again, two factors will help you determine how much capital you’ll need to get your butchery off the ground. The first is the location of your butchery. And the second is the size and space of your shop/site. Ideally, a small butchery should cost as little as KES 30,000 to start.
However, a small to medium size butchery business located in a low-income area like Mathare, Kibera, or rural areas should set you back around KES 100,000. Remember this is a ballpark figure, and the actual amount can be higher or lower depending on your customer base.
For a medium butchery in a middle-income area, you will need between KES 200,000 and KES 500,000 to start the business. Here, we are talking about a butchery located in so-so towns like Nakuru, Eldoret, Kisumu, and Nyeri, as well as middle-class neighborhoods and estates like Buru Buru, Donholm, Embakasi, Ngong Road, Huruma, Pipeline, Syokimau, Kitengela, and Langáta, just to mention a few.
A butchery business nestled in an affluent neighborhood or high-income areas will require even more capital, in the region of KES 500,000 to KES 1 million. As you might expect, this applies to butcheries located in Hurlingham, Kileleshwa, Kilimani, Karen, Kitisuru, and other affluent suburbs, malls, and high-end shopping centers.
Getting the Location Right
Where you install your butchery can make or break your business venture. Generally, you want your butchery to be situated in a busy, densely populated area. Your shop should be easy to see and walk to. For drive-in customers, ensure that your shop area has ample, secure parking. Whatever the case, make sure that you stay away from dirty sites.
The best places to set up your butchery shop should be in a residential area center or close to a supermarket, bus stop, market, or other areas that experience high foot traffic. As soon as you pinpoint the perfect location, be ready to swoop in, renovate, and brand the space.
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What do I Need to Start a Butchery Business in Kenya?
To get your butchery business off the ground, you will need to invest, rent, or buy the following:
- Display Counter: Bring in a good contractor to install a display counter for your meat. This way, customers can catch a glimpse of your awesome meats from afar. It should be made from easy-to-clean materials, including window glass, aluminum top, and perhaps wood.
- Weighing Scale (and Weights): It’s now trendy and fashionable to have a digital weight scale for your butchery. If you don’t have a big budget, you can still go for a manual weighing scale which can set you back around KES 5,000. A digital scale, on the other hand, will cost between KES 15,000 and KES 30,000.
- Fridge or Deep Freezer: Meat is perishable. That’s why you need to have a sizeable freezer or fridge to keep your stock fresh overnight. The last thing is to have over 100 kgs of meat spoiled.
- Knives and Meat Cleavers: Ordinary knives will not do well in your butchery. Invest in quality butcher knives and meat cleavers to make your work easier.
- Wrapping Material: You’ll need to buy plenty of wrapping paper
- Others: If you can’t afford a meat cleaver, buy a panga, as well as cleaning equipment, detergents, and white butcher’s coat.
Meat Supply: Where can I get Meat for my Butchery Business in Kenya?
If you intend to set up your butchery in or around the Nairobi area, you have several options for sourcing quality meat. Most butchery owners get their meat from City Market, especially those located within CBD. Other Nairobi-based butcheries get their meat supply from slaughterhouses in Kajiado, Njiru, and Dagoretti. Just do a little research, and find the nearest slaughterhouse to your butchery.
A kg of beef in Nairobi slaughterhouses go for between KES 250 and KES 320 depending on their location, season, and type of meat. Goat meat is usually supplied at no less than KES 320 per kilo.
What Licenses Do I Need for my Butchery Business in Kenya?
Food and Hygiene license: like all other businesses that deal with food and drinks in Kenya, a butchery requires food and hygiene licenses from your county government. It is often issued by the Public Health Department of the respective county.
County Business Permit: This is a mandatory license that permits you to operate a business within your given county. Expect to pay between KES 5,000 and KES 20,000 for the permit depending on your location.
How to Price your Meat
The selling price of your meat depends on your location, size, and standard. If you’re a high-end butchery, you can expect to charge customers up to KES 2,000 per kg. Most butchery, however, price their meat per grams. You can also sell at different price points like KES 100, 200, 300, 500, 1,000, etc.
For most butchery owners, it’s all about value addition. You can sell your meat on-site as nyama choma, boiled or fried with rice, ugali, matoke, or other side dishes. This way, you can fetch better prices and sell more meat per day.
Final Word
When all’s said and done, butchery business in Kenya is all about strategic location, being smart, and maintaining a high standard of hygiene.
