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How to Start a Profitable Wines and Spirits Business in Kenya [2024 Guide]

  • Wines & Spirits

How to Start a Profitable Wines and Spirits Business in Kenya [2024 Guide]

According to NACADA, over 15 million Kenyans consume wines and spirits. Among these, about twelve million drink regularly, spending about 100 shillings on a single occasion.

Looking at these numbers, it’s evident that the wines and spirits business in Kenya is lucrative. The wines and spirits market is developing at high speed compared to beer in Kenya.

That’s because they are cheaper and, therefore, affordable even to those who don’t have a lot to spend on liquor.

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To expound on that, a sit-on customer spends at least Ksh.300 daily while takeaway clients spend roughly 210 shillings daily. However, these prices keep changing thanks to the execution of SIN TAX. 

All the same, the wines and spirits business in Kenya is worthwhile. You can start one without breaking the bank.

Let me write your Wines & Spirit business plan…

Business plan template

Not sure where to start your wines and spirit business and need a detailed roadmap? Looking to take your business to the next level? Do you need a well-crafted business plan that can guide your growth and set you on the path to success?

Steps to Starting a Wines and Spirits Business in Kenya

If you are ready to start a wines and spirits business in Kenya, just follow these steps.

How Much Does it Cost to Start a Wines and Spirits Business in Kenya? You will need a capital of KSh 100,000- 500,000 to start a wines and spirits business in Kenya. This will be enough to pay for rent, licenses, and room furniture, among others. If you don’t have this amount of money, consider applying for a loa n.

If you already have the capital, look for a suitable business location. A strategically located premise should be in a busy urban center or anywhere near busy roads with enough human traffic. The aim is to increase the visibility of your business. Also, start your business in a less competitive environment. If your business is close to several other similar businesses, you may not survive the stiff competition, especially now that you will be new in the industry. Look for an affordable premise. According to the experts, a wines and spirits business in the country gives an average income of 40,000 to 100000 per month. Therefore, if your rental cost exceeds 20,000, your struggle might run into a loss. In this case, you should look for a premise that does not cost more than Ksh 15,000.

Now that you’ve got the capital and a good premise, it’s time to fulfill all the legal requirements for a wines and spirits business in Kenya. Below are some of the things you will need to do: a) Register your Business Name Registering any legal business in Kenya is no longer an uphill task. The most exciting thing is that everything is literally being done online, which is faster and more effective. Therefore, you can register your wines and spirits business name on eCitizen. Manual business registration is no longer allowed by the registrar of companies since 15th October 2017. To register your business name, follow these steps; – Open an eCitizen account or log in if you already have an existing one–eCitizen is a portal that allows Kenyan citizens to access government services. – Apply for a name and clear the fee for a company name search (costs 150 shillings per name) You can apply a maximum of 3 names. If the name search goes through, you’ll get a business name reservation between 1 to 3 days. The details will be sent to your eCitizen account, so you can download them. b) Register Your Business During application, you’ll be required to pay a company registration fee of about Ksh 11,000. But if you are registering as a sole proprietor, it will only cost you Ksh 850 while a partnership costs 2,500 shillings. To register your business, you will need to send signed application forms.  You’ll get your business registration documents in two to three weeks. c) Get a KRA (Kenya Revenue Authority) Pin All businesses in Kenya must have a tax registration PIN. The wines and spirits business is no exception. The registration process can be completed online on Kenya Revenue Authority iTax Portal. To do that, follow these steps: – Register as a taxpayer. You’ll need ID copies and your personal KRA pin – Apply for your company Pin by following the outlined procedures – Send PIN acknowledgment receipt. – Obtain your business PIN  d ) Acquire Liquor License This is important since you can’t run a wines and spirits business in Kenya without a valid license. The cost for a liquor license in Nairobi is as follows; The application for a liquor license is 6,000 shillings. A valid one-year liquor license is 50 000 shillings. e) Get a County County Business Permit To start a wines and spirits business in the country, you’ll need a county business permit. You can get it from the city council. Be sure to liaise with City Council officers about the cost. Those officers will come to inspect your premise to see your location and advice on how you’ll pay. Once you pay, you’ll be given a receipt, and a certificate will follow about a week later. The County business permit expires after one year, and you’ll have to renew it annually. Having fulfilled all the legal requirements, you only have a few steps remaining before you can start operating your wines and spirits business in Kenya

You must have a reliable supplier to avoid running out of stock or getting low-quality goods. Getting a good supplier is tricky, but not impossible. You only need to be smart. For example, you can develop a good relationship with workers at wines and spirits shops near your premise. Asking the shop owner isn’t a good idea since they may not take it well, and chances are they won’t disclose their supplier’s details to you. However, the workers will tell you what you need to know provided you develop a good relationship. Once you get reliable suppliers’ contacts, get in touch with them and discuss when and where to bring the supplies and, of course, how you’ll pay.

This is the final step. After cleaning your business room, furnish it. Ensure you have enough shelves, seats, and tables. Remember that a well-furnished room will attract customers. You don’t need costly furniture to make your business room appealing. Simple but well-arranged furniture can be a game-changer. Also, your stock may cost between 100,000 shillings to 200,000 shillings. But if you are starting a wholesale business, you will need at least 500,000 shillings.  If you want to employ someone to help you run the business, look for the right candidate beforehand. He/she should have prior experience working in a wines and spirits business in Kenya. They should be social with top-notch customer care services.

The Bottom Line

If you have a good strategy and put in the required effort, you can make good money with a wines and spirits business in Kenya. Just follow the steps outlined in this guide and should be able to see profits within the first few months.

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L.K. Nathans

L.K. Nathans

I am a personal finance enthusiast and digital marketer. My work here is to help you navigate your financial journey and achieve your main money goals. Through Omoka Digital, I provide practical tips, strategies, and insights on budgeting, saving, investing, and debt management. My aim is to empower you with the knowledge and tools you need to make informed financial decisions and improve your financial well-being.

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How to Start a Successful Wines and Spirit Business in Kenya

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By Bizhack Editorial

Wines and Spirit Business in Kenya

Last updated on March 2nd, 2024 at 05:44 pm

Starting a wines and spirit business in Kenya can be an exciting and rewarding venture, but it is important to understand the costs associated with such a business and the steps to take before beginning .

This article will provide an overview of the costs associated with starting a wines and spirit business in Kenya, the licenses required, securing the necessary financing, choosing a suitable location, and then tips on managing and improving the profitability of the business.

What is the Costs of Starting a Wines and Spirit Business in Kenya?

The cost of starting a wines and spirit business in Kenya will depend on the type of business you are looking to start.

For example, if you are looking to open a retail store, the cost is likely to be higher than setting up an online store.

However, there are numerous other costs associated with starting a wines and spirit business in Kenya, such as supplies, rent and utilities, employee wages, insurance, and inventory.

It is important to be aware of all the costs associated with a business before starting.

Generally, the cost for starting a wines and spirits business in Kenya can be anywhere from KES 50,000 to KES 500,000. This cost includes the licensing fees, purchasing of inventory and marketing expenses. Additionally, you may also need to factor in the cost of renting or buying a space to operate the business

Obtaining Necessary Licences

In order to operate a wines and spirit business in Kenya, you must obtain a valid license from the relevant local authority.

This involves filling out the relevant form, paying the necessary fees, and providing proof of your identity.

And also providing proof of your qualifications and experience in the wines and spirit sector. Depending on the local regulations, you may have to undergo additional training and safety checks in order to obtain the relevant license.

Securing Finances

Once the necessary licenses have been obtained, the next step is to secure the necessary finances to start the business.

This can include bank loans, venture capital, or other forms of financing. It is important to consider the terms and conditions of the loan and the repayment terms before taking out a loan.

Getting the right requirements

In order to start a wines and spirits business in Kenya, the following requirements must be met:

  • Obtain an Alcoholic Drinks License: An Alcoholic Drinks License is required to sell alcoholic beverages in Kenya. The cost of the license depends on the size of the business and can range from Ksh. 5,000 to Ksh. 25,000.
  • Register with the Kenya Revenue Authority (KRA): All businesses must register with the KRA to be able to pay taxes and meet other legal requirements.
  • Obtain a Certificate of Competency from the Kenya Bureau of Standards (KEBS): This is a mandatory requirement for all alcoholic beverages businesses in Kenya. The cost of the KEBS certificate is Ksh. 7,500.
  • Obtain a Certificate of Good Manufacturing Practice from the Kenya Bureau of Standards (KEBS): This is a mandatory requirement for all wines and spirits businesses in Kenya. The cost of the KEBS certificate is Ksh. 10,000.
  • Get a Distributor Agreement: In order to be able to sell wines and spirits, you will need to have a distributor agreement with one or more distributors. The cost of this varies depending on the distributor you select.
  • Pay the Excise Duty: All alcoholic beverages in Kenya are subject to excise duty. The excise duty rate depends on the type of alcoholic beverage being sold, and the cost can range from Ksh. 100 to Ksh. 500.

The above requirements and associated costs are necessary in order to start a wines and spirits business in Kenya.

The location of your wines and spirits business is also an important factor to consider.

It is important to choose a location that is visible and accessible to your target customers.

In addition, the location you have chosen must also meet regulatory requirements and provide the necessary facilities for the business.

Also Checkout: Challenges facing Wines and Spirits Business

Managing your wine business

Once the business has been established, it is important to ensure it is managed efficiently. This involves establishing systems and procedures, and hiring the necessary personnel to carry out daily operations.

Additionally, it is important to ensure the business is kept up-to-date with the latest trends in the sector, and that it remains competitive.

Tips on Profitability of the Business

Once the business is up and running, there are several tips that you should be following to ensure it remains profitable.

These ideas include developing a strong marketing strategy, investing in quality products and services, and building relationships with suppliers and customers. Additionally, it is important to remain focused on customer satisfaction and to provide great customer service.

Starting a wines and spirit business in Kenya is an exciting venture, but it is important to understand the costs associated and the steps that must be taken before beginning.

Additionally, it is important to consider the licensing requirements, securing the necessary finances, choosing a suitable location, and managing the business efficiently in order to ensure the business remains profitable. With the right planning and preparation, a successful wines and spirit business in Kenya can be achieved.

Q . Is wines and spirit business profitable?

Q . How much can a wines and spirit store owner make?

A . The amount of money that a store makes will vary depending on its location; outlets situated in less densely populated areas usually earn around Ksh 50,000 a month, while those in heavily-trafficked places usually generate an average of between Ksh 200,000 and Ksh 350,000.

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How to start a wines and spirits business in Kenya

Wines and Spirits Business in Kenya

Wines and Spirits Business in Kenya: how easy is it to start a wines and spirits shop in Kenya? Well, the answer to that question depends on how one is prepared for the task. Before we talk about what is required to start let us first take an overview of the industry. Overview

=> According to a statement by NACADA, about 15 million Kenyans drink regularly. 12 million drink daily spending an average of Ksh100 on each occasion.

=> In 2010 the Alcohol Drinks Control Act (commonly known as Muthutho Law) was passed to regulate operations in this industry.

Cost breakdown: Building a three bedroom house with Sh. 2.4 million

=> Market for wines and spirits in Kenya is growing because majority find them cheaper than beer whose price has been rising in recent years due to implementation of SIN TAX.

=> Sit-in customers spend an average of Ksh. 300 per day while takeaway customers spend at least Ksh. 210 per day.

Wines and Spirits Business in Kenya: Getting Started

You first need to identify the ideal location and because alcohol consumption is a leisure activity many clients prefer to frequent establishments that are easily accessible from the main road. It is advisable to choose a location that has high traffic. Avoid setting up your business near schools as this is against the law.

Competition

There is intense competition especially in urban areas and for this reason you need to ensure that your strategy is on point. Scan the market conditions and set a realistic price. You also need to keep track of changes in market trends if you want to remain competitive.

NCBA

Wines and Spirits Business in Kenya: Licensing

Licensing is the most important aspect of starting a wines and spirits shop. The most important license of all is liquor license which costs Ksh. 50,000. Other licenses include:

Business License from County Council – Ksh. 3,500 Health Certificate – Ksh. 3,000 Approval by NEMA – Ksh. 3,000 MCSK License – Ksh. 3,000

 Wines and Spirits Business in Kenya: Requirements for setting up

The requirements for setting up depend on your long-term goals and capital constraints.

For instance, if you don’t have much capital you can look for a 10×10 ft room and set up a simple wines and spirit takeaway shop. With more capital you can set up a sit-in facility with chairs, tables and shelves. On average rent prices range from Ksh. 20,000 – Ksh. 50,000 depending on location.

Wines and Spirits Business in Kenya: Cost Breakdown

Licenses – Ksh. 70,000 Furniture (Shelves, Display area, Tables, Chairs etc.) – Ksh. 50,000 Stock (Inventory) – Ksh. 50,000 Miscellaneous – Ksh. 100,000 TOTAL – Ksh. 270,000

Wines and Spirits Business in Kenya: Challenges

The first challenge you are going to face is intense competition. You will need to provide quality services and best prices in order to retain old customers who will in turn keep coming back with their friends.

You also need to appreciate the challenge that you can only open your business from 5.00pm – 11.00pm on weekdays and 2:00pm – 11:00pm on weekends and public holidays.

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Opening a liquor store can be a lucrative business venture. Still, you must do your homework to comply with all the necessary licensing and local laws. This article will walk you through the process of starting a wines and spirits business in Kenya, from getting started to what you can expect along the way.

Why Start a Wines and Spirits Business in Kenya?

Owning a liquor store can be a lucrative and valuable enterprise for the community. These establishments boast an impressive selection of alcoholic beverages, including exclusive products not found in typical grocery or convenience stores. As online alcohol purchases are limited, liquor stores offer a great chance to provide customers with an enjoyable in-person shopping experience.

Related: The Best Business to Start in Rural Kenya .

Requirements for Starting a Wines and Spirits Business in Kenya

Before you jump into opening up a liquor store, there are some things you need to do first.

1. Research

Starting a wine and spirits business in Kenya requires specific regulations, so it’s vital to be prepared and ensure you comply with all requirements.

This means doing the necessary research to understand the laws and regulations by which superintendence and control of wines and spirits businesses are governed in Kenya.

Researching potential suppliers is crucial to ensure you’re buying quality products, have adequate stock levels, receive timely deliveries, and gain a competitive advantage over other retailers.

Keep all documents in an organized filing system when conducting your research, as these may come in handy if government authorities ever audit you.

Ultimately, putting this extra effort into research upfront will help get your business on the right foot.

You’ll need to have the necessary capital to open up a liquor store.

This includes rent, stock, shelves, grids, and all the other costs associated with starting a business.

It can also include funds for marketing and advertising campaigns to help reach new customers – especially if you plan on running retail specials or offering discounts.

As for the stock, it depends on the type of customers you wish to serve, but generally, it’s wise to have a good selection of beer, wine, and spirits.

Finally, start on what you have for the stock, then build it up over time as your business grows and develops.

You may be able to qualify for loans with banks or other financial institutions if you need extra funding.

3. Location

Starting any business in Kenya has specific legal requirements to ensure success and compliance with respective laws. This holds especially true for wine and spirits businesses.

Kenya has specific regulations concerning the location of a wine and spirits business, which must be established within a prescribed area such as a shopping centre, mall, or business area at least 200 meters from any residential area, school, or place of worship.

A local authority must approve your proposed site before issuing a license.

Moreover, the size of the business premises must meet minimum regulations set out by the nearest county government office.

Highways, Main Street, and other public places are good because of the high traffic.

Not only that, but you should also consider the proximity of existing competitors in your proposed area.

You may also like 10 Best Businesses for Ladies Sitting at Home .

4. Get a Liquor License and Permits

In Kenya, obtaining a wine and spirits license can be a lengthy process that requires specific paperwork, including obtaining approval from relevant local government bodies.

A special license is also required to sell alcohol in any restaurant or bar in Kenya, which you will need to apply.

Before a license is issued, a local council may inspect the premises to ensure it meets safety and other requirements.

Once approved, you will receive the license to sell liquor legally in Kenya.

One thing I know about the cost of a wine and spirits License in Kenya is that most individuals will lie to you about the price.

It is, therefore, best to visit your local council/county office or Huduma Center to inquire about the cost.

That said, the license cost is usually determined by various factors, such as your county and the nature of the license you want to apply for.

5. Know Your Target Market:

Many new entrepreneurs make the mistake of thinking that all customers are the same. They’re not.

Knowing your target market is essential to compete for the right customers and increasing sales.

Knowing your customer base can help you decide what products to stock and how to differentiate yourself from other liquor stores.

Furthermore, you can use online marketing and social media to reach a broader audience and build relationships with potential customers.

It is also vital to ensure that your store has the right mix of products for different tastes and preferences.

A good selection of wines, spirits, beers, ciders, and other beverages is essential to attract the right customers.

It is also advisable to stay updated with the latest industry trends to keep up with customer demand and preferences.

By doing so, you can be sure that your business will remain competitive and profitable in the long term.

6. Promote Your Business

Once you have everything set up, the next step is to promote your business.

Most people start by simply telling their friends and family about the new venture.

Creating an online presence, such as a website and social media accounts, is vital to reach a larger audience.

You can use these platforms to post updates, offer discounts and promotions, and create content related to your selling products.

Another great way to promote your business is by attending local events such as wine festivals and exhibitions.

By participating in these events, you’ll be able to network with potential customers and industry professionals.

Finally, don’t forget to leverage traditional methods such as print adverts and brochures.

By following these steps, you will be well on your way to starting a successful wine and spirits business in Kenya.

Are Wine and Spirits Profitable in Kenya?

Yes, wines and spirits can be profitable in Kenya. In recent years, the Kenyan market for alcoholic beverages has grown significantly, especially as more people have access to disposable income.

Additionally, the country has seen an increase in bars, pubs, clubs, and restaurants selling alcohol, which means more customers and potential income.

That said, it’s essential to understand the local regulations and laws around liquor sales before you get started to ensure your business is compliant.

Also, read 15 Best Side Business Ideas for Ladies in 2022

How Much Money do you Need to Start a Wines and Spirit business in Kenya?

The capital you need to start a wine business can vary greatly depending on the size and scope of your venture.

Generally, entrepreneurs will need capital for inventory/stock, licensing fees, advertising costs, and other operating expenses associated with running a business.

You should also factor in costs related to renting or purchasing premises (at least initially) and other overhead expenses.

Ultimately, it would help if you aimed to have enough funds to cover your start-up costs and maintain operations for at least the first six months.

It is also suggested that you have a backup plan if sales do not meet expectations during this period.

Starting any business requires dedication and hard work, so ensure you are prepared for the challenges ahead and have enough financial resources to sustain operations during the initial stages.

You can be well on your way to a successful wine business in Kenya with the right approach.

Where to Get Liquor Distributors in Kenya

Finding the right liquor distributors in Kenya can be challenging.

There are a few key steps when searching for the best suppliers.

  • Research local wholesalers and retailers with access to the products you require.
  • Network with other wine and spirits businesses to identify potential suppliers.
  • Look for wholesalers who specialize in the type of products you are selling, as they may be able to offer more competitive pricing and better quality products.
  • Visit local wine fairs or exhibitions to find suppliers in person and get a feel for the market.

It is also essential to do your due diligence before committing to any supplier by checking customer reviews, looking into their reputation, and assessing their pricing structure.

By carefully researching potential suppliers, you can ensure that your business can access the best quality products at competitive prices.

Read also 10 Digital Marketing Tips for Small Businesses .

Tips on how to Run a Wines and Spirits business in Kenya

The following tips can help you run a successful wine and spirits business in Kenya:

1. Sell Genuine Liquor

It is essential to ensure that all products that you sell are genuine, of high quality, and safe for consumption.

There are a lot of counterfeits in the market, and it is easy for unsuspecting customers to buy them.

Therefore, ensure that you only deal with reputable suppliers and that your products meet all industry standards.

Selling genuine liquor will also keep you out of trouble with the Kenya Revenue Authority (KRA) and other government agencies responsible for regulating the industry.

2. Have a Variety of Products

To remain competitive, offering a wide range of products is essential.

This will enable you to attract more customers and increase sales.

Make sure you are updated on the latest trends in the industry, and keep an eye out for new products that may be in demand.

3. Offer Competitive Prices

Offering competitive prices is essential to running a successful wine and spirits business in Kenya.

Make sure you know the going rates for similar products and adjust your pricing accordingly.

It is also essential to review your prices regularly to remain competitive.

4. Buy from one Distributor/Supplier

To avoid counterfeits and ensure the quality of your products, it is advisable to buy from one distributor.

Having a single supplier will also make it easier for you to track orders and manage inventory.

Furthermore, Buying from one supplier can help you to access better deals and discounts.

This will enable you to keep your prices low, attract more customers, and increase profits.

5. Pay Attention to Customer Feedback

Finally, paying attention to customer feedback and using it to improve your business is essential.

This will help you identify areas of improvement and ensure that customers receive the best possible service.

By following these tips, you can be well on your way to running a successful wine and spirits business in Kenya.

Starting a wine and spirits business in Kenya can be a rewarding experience. However, having the proper knowledge and resources is crucial before getting started.

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How to Start and Run a Wines and Spirits Business Successfully in Kenya

wines and spirits business plan in kenya pdf

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wines and spirits business plan in kenya pdf

Wines and spirits business in Kenya is growing with shops sprucing up in our neighborhoods daily. This is due to the increase in demand for these products in the country. These shops are replacing the traditional bars and clubs that have characterized the liquor industry for a long time.

Top 10 Most Profitable Businesses in Kenya

It is a change that is opening numerous opportunities across the country for wines and spirits shops. If you have ever thought of starting your shop, this is the article for you. Do you know what it takes to run this business successfully?

Ready market

The demand for alcoholic products makes this business have a ready market across the country. With the consumption of these products exceeding 150 billion annually, the market has become attractive to many investors.

Ready market not only helps reduce marketing costs for the business but also makes it possible to set up the business across the country.

Below are some of the challenges that face this business.

Over-regulation

The government maintains tight control over the alcoholic business due to the potential harm it could cause to society. Some of the ways they control it include making the licenses more expensive and limiting the operating hours.

Competition

The high demand for these products has attracted a lot of business people. Over time, this has made competition grow making it harder for new entrants to compete. Hence, you need to take advantage of some factors such as strategic location and good customer service to remain in business.

There is also growing competition by online sellers that don’t necessarily need to have a physical shop.

To start and run a wine and spirits business successfully in Kenya, you need to meet the below requirements;

Regulatory requirements

Business requirements.

These are the legal requirements you must fulfill before the business starts operations. Failure to do so makes the business illegal and can lead to prosecution. They include;

  • Business registration

The business requires a business registration certificate or a certificate of incorporation if it is registered as a company. To do this you also need to have a Kenya Revenue Authority PIN to facilitate tax compliance. Learn more on how to get a KRA certificate.

Registering a business is simpler, faster, and cheaper in comparison to registering a company. How to register a business name in Kenya.

company registration

However, if you want to register a company, you can learn more about the company registration process in Kenya.

  • Business Permit

This is the permit issued by the county government authorizing the business to operate. A business permit comes at a cost. However, the cost varies depending on the county. Hence, it is necessary to engage your local county offices to understand the relevant costs.

 A business permit is a mandatory requirement and failure to have it makes the business operations illegal.

If you are operating In Nairobi, Learn more about how to get a single business permit.

  • Liquor License

This is a license that is specific to those dealing in the liquor business. The type of liquor license depends on the nature of the business. As an example, the license for a supermarket selling alcoholic products is different from that of a wine and spirits shop. However, a general retail alcoholic drinks license costs 50,000 shillings.

The licenses are mandatory and strictly controlled by the National Authority for Campaign Against Drugs (NACADA). This is a famous organization from the well-known Mututho Law.

These are some of the major regulatory requirements essential to starting a wines and spirits shop.

Just like any normal business, there are several business requirements necessary how to start and run a wine and spirits business successfully in Kenya. These include;

Capital is the startup funds to get the wines and spirits business in Kenya running and sustain its operations, especially in the initial days. It is your role as the business owner to provide capital. Some of the key sources of capital include savings and loans. Learn more on factors to consider before taking a loan in Kenya.

The amount of capital needed is based on the size of the business. The bigger the business, the more the amount of capital you need to set up.

Below are some of the uses of the startup capital

  • Paying for the regulatory permits
  • Payment of business rent
  • Salary payments
  • Purchase of stocks
  • Meeting emerging costs
  • Physical Shop

A wines and spirits business requires a shop where you sell the products. The shop should be located in a strategic location such as in an area with high traffic of people. It should also be spacious to accommodate your stock and any expansion needs.  

A good shop location increases the chance of getting more customers translating to more income. However, there are some restrictions regarding where you can locate this business. Some of these include near a school. Hence, you must familiarize yourself with all these requirements to avoid breaking the laws.

A shop should be well branded for easier recognition by your customers. Other tips to maintain an edge include ensuring it is safe and clean.

Even if you are selling your products online, you require storage space to achieve this.

This refers to the liquor that you are selling. Different products sell in this business. Some of these include wines, spirits, and soft drinks.

Stock management

Hence, you must ensure to have all these to serve your customer’s needs. The key strategy in this business is maintaining a balance while stocking. This becomes easier over time after you have the market understanding enabling you to understand what’s the best-selling products.

It is also very critical to maintaining a good relationship with your suppliers as they play a key role in stocking through some actions such as paying them on time.

Employees are an integral part of the wines and spirits business in Kenya if you can’t run it alone. Some of the situations when the business needs employees include when you are unable to be at the shop full-time or due to expansion.

Hence, you need to ensure you have the right staff as they will be a key factor in determining the business’s success.

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wines and spirits business plan in kenya pdf

How To Start Wines And Spirit Business In Kenya Easily For Profit

People love having fun during their leisure time and based on statistics many individuals use drinks such as wines and spirit to enjoy themselves. This creates a good opportunity niche where these products will be a fast-moving goods in your business.

In that case, I want to show you how to make money in the wines and spirits business by showing you simple steps to follow on how to start wines and spirit business in Kenya:

Step 2: Identify a strategic Location as this is key in your business since it determines the number of customers in your firm.

Step 4: Get yourself a KRA pin in order to pay taxes for your business.

Step 7: Market your business mainly through advertisements to make your business popular.

Starting Capital For Wines And Spirits Business In Kenya

To conclude, venture into wines and spirits business to enjoy more profits in future thus acquiring financial freedom in the society.

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Start a Wine and Spirits Business in Kenya – Legal and Licensing Requirements

  • January 31, 2019
  • Posted by: simba001
  • Categories: Benefits of POS, Wines and Spirits Business

wine and spirits business in Kenya

Wine and Spirits Business in Kenya is very popular. This business is especially popular in estates within urban centers where there’s a high population of people with disposable income. Coupled with the fact that a high number of people prefer to buy alcohol and drink at home (or house parties), the potential for wine and spirits business in Kenya will only keep growing.

In order to start a wine and spirits business in Kenya, there are a few legal and licensing requirements that you must adhere to. Luckily, most of the legal/licensing procedures can be undertaken online without having to physically visit many government offices.  Basically, the legal/licensing requirements involve business registration, tax registration and county business permits

Business Name Registration.

The registration of businesses in Kenya has been made easier and faster. One can now do a name search and even register their business fully online on eCitizen . It’s important to note that from 15th October 2017, no manual registration of businesses will be done by the registrar of companies.

Here is the new process you’ll follow to start a restaurant business  in Kenya :

Company/business name reservation

1 Register with eCitizen  (FREE)

This is a one-stop portal for accessing most Kenyan government services

2 Apply and pay for company name search (Ksh 150 per Name)

You can apply for up to 3 names in one order

3 Obtain company name reservation in 1-3 days   (Free if Name Search is successful)

This is usually sent to your email/eCitizen account and can be downloaded.

Company/business registration

1. Apply and pay for company registration (online eCitizen , about Ksh 11,000)

=>A limited company is the most ideal business type. Companies can have a single director or more.

=>Alternatively, you can register a Partnership (about Ksh 2,500) or Sole Proprietor (about Ksh 850)

2.  Submit signed application forms

3.  Obtain company registration documents (2-3 weeks)

Kenya Revenue Authority (KRA) PIN

KRA is the Tax authority in Kenya and all companies must have a Company Tax registration PIN number.

The entire registration process can be done online on the KRA iTax Portal . The process entails:

1. Taxpayer registration (Submit Director(s) Personal KRA PIN plus ID Copies

2. Apply for company PIN  (Online, KRA iTax Portal)

3. Submit PIN acknowlgement receipt

4. Obtain company PIN

NSSF and NHIF Registration can also be done online for Companies to submit employees’ PAYE deductions

Obtain Liquor License in Kenya

This is the most critical component when starting a wine and spirits business in Kenya.

You cannot operate a wine and spirits business in Kenya with a Valid liquor license.

The cost breakdown for Liquor License (in Nairobi) is as follows:

1. Liquor license application 6,000

2. Liquor license 50,000 (Valid for 1 year)

***Liquor licence bribe 20,000

County Business Permit

For you to conduct or start a wine and spirits business in Kenya, you also need an annual business permit from the City Council.

Talk to your local City Council officers on the cost and they may visit your premises to confirm the size of the location and they will advise on how to pay. You will get a receipt when you pay, and then the certificate itself after about a week.

The Unified Business Permit in Nairobi may cost around Ksh 26,500 for a full-fledged wine and spirits business in Kenya (Nairobi CBD and estates)

New Regulations (Nairobi County Unified Business Permit)

Just recently, the Nairobi City County announced the launch of the Unified Business Permit which consolidates all the requirements for running a business within the County.

This is a one-stop source whereby, after acquiring your Unified Business Permit, you will have paid for a Single business permit, fire Clearance Certificate, Advertising Signage (300mm by 600 mm or less), Health Certificate, and Food Hygiene .

The Unified Business Permit in Nairobi may cost around Ksh 26,500 for a full-fledged wine and spirits business in Kenya in Nairobi CBD and nearby suburbs

In order to succeed in the Restaurant/Bar industry, you need to be smart and use our Wines and Spirits  Software in Kenya . Get in touch today with us today via  email  or call 020 206 7933 or 0 715 103 468 and see your business grow!

Related posts.

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Contact us at the SimbaPOS office nearest to you or submit a business inquiry online.

IMAGES

  1. Wines and Spirits Business Plan in Kenya [Free PDF Template]

    wines and spirits business plan in kenya pdf

  2. How to Start a Profitable Wines and Spirits Business in Kenya [2024 Guide]

    wines and spirits business plan in kenya pdf

  3. How to start a successful Wines and Spirits Business in Kenya

    wines and spirits business plan in kenya pdf

  4. Guide to Starting a Wines and Spirits Business in Kenya

    wines and spirits business plan in kenya pdf

  5. How to start a wines and spirits business in Kenya

    wines and spirits business plan in kenya pdf

  6. How to Start a Successful Wines and Spirit Business in Kenya

    wines and spirits business plan in kenya pdf

VIDEO

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COMMENTS

  1. Wines and Spirits Business Plan in Kenya [Free PDF Template]

    Key sections to include in a lean wines and spirits business plan include: Identity: Briefly describe your business. Problem: Explain the problem your business aims to solve. Solution: Describe your unique products/services and the solution they offer. Competition: Analyze competitors, their strengths, and weaknesses.

  2. How to Start a Profitable Wines and Spirits Business in Kenya [2024 Guide]

    The cost for a liquor license in Nairobi is as follows; The application for a liquor license is 6,000 shillings. A valid one-year liquor license is 50 000 shillings. e) Get a County County Business Permit. To start a wines and spirits business in the country, you'll need a county business permit.

  3. How To Start A Wines And Spirits Business In Kenya 2024

    Here is a breakdown of what you need to open a wine and spirits business. Rent - Kshs 10,000 and above. Licenses - Kshs 70,000. Stock - Kshs 50,000 and above. Furnishing - Kshs 50,000. Miscellaneous - Kshs 100,000. The total cost for starting a wine and spirits business in Kenya is Kshs 280,000.

  4. How to Start a Successful Wines and Spirit Business in Kenya

    In order to start a wines and spirits business in Kenya, the following requirements must be met: Obtain an Alcoholic Drinks License: An Alcoholic Drinks License is required to sell alcoholic beverages in Kenya. The cost of the license depends on the size of the business and can range from Ksh. 5,000 to Ksh. 25,000.

  5. PDF The Wines & Spirits Retail Business Guide

    ks at the wines and spirits retail business in 2021. Although the alcoholic spirits shop business has existed for over 20 years, we use 2013, the devolution year, as the base to observe changes in the market. Alcohol Consumption in Kenya There are many entrepreneurs who consider the wines and spirits business. safe, a sure bet. as they say. The ...

  6. How to start a successful Wines and Spirits Business in Kenya

    2. Cost. 3. Target Market. 4. Security. 5. Any legal considerations - like Wines and Spirits should not be near Schools. With a POS solution like SimbaPOS, it's possible to handle virtually all back-office tasks in a single interface, managing everything from operational analytics to employee management with a few easy clicks.

  7. How to start a wines and spirits business in Kenya

    The most important license of all is liquor license which costs Ksh. 50,000. Other licenses include: Business License from County Council - Ksh. 3,500. Health Certificate - Ksh. 3,000. Approval by NEMA - Ksh. 3,000. MCSK License - Ksh. 3,000. Wines and Spirits Business in Kenya: Requirements for setting up.

  8. Wines and Spirits Business in Kenya (Comprehensive Business plan

    We have put together this comprehensive business plan for starting and running a wines & spirits business in Kenya. This plan includes everything you need to know in order to get your business up and running, including market research, licensing requirements, equipment costs and suppliers, raw materials costs and production costs; operational ...

  9. Crack A Business Kenya

    The document is a guide to investing in the wines and spirits retail business in Kenya. It provides information on trends in alcohol consumption, types of licenses required, capital requirements, financial projections, stocking considerations, target customer profiles, and basis of competition. The guide notes that while alcohol consumption is growing in Kenya, starting a retail business ...

  10. How to Start a Wines and Spirits Business in Kenya

    This plan will serve as a roadmap for your business and will be necessary when seeking funding or approaching potential investors. 2. Legal Requirements: To operate a wines and spirits business in Kenya, you must comply with several legal requirements. Here are the key steps to follow:

  11. How to Start a Wines and Spirits Business in Kenya

    4. Get a Liquor License and Permits. In Kenya, obtaining a wine and spirits license can be a lengthy process that requires specific paperwork, including obtaining approval from relevant local government bodies. A special license is also required to sell alcohol in any restaurant or bar in Kenya, which you will need to apply.

  12. PDF Wines & Spirits Losses & Gains

    centers of power and policy. Although licensing of Wines and Spirits business is still governed by the Alcoholic Drinks Act 2010, county governments have the power to boost or limit the business by the local laws they pass. In an effort to stand out as epitomes of morality a number of counties have come up with laws to strictly control

  13. How to Start and Run a Wines and Spirits Business Successfully in Kenya

    This is a license that is specific to those dealing in the liquor business. The type of liquor license depends on the nature of the business. As an example, the license for a supermarket selling alcoholic products is different from that of a wine and spirits shop. However, a general retail alcoholic drinks license costs 50,000 shillings.

  14. PDF Free Version of Growthinks Liquor Store Business Plan

    Sample from Growthink's Ultimate Liquor Store Business Plan Template: The following industry statistics bode well for [Company Name]. According to the recent report entitled, "Beer, Wine & Liquor Stores in the U.S." by Supplier Relations US, LLC, the liquor store industry's annual revenue is approximately $62 billion, with an estimated ...

  15. How To Start Wines And Spirit Business In Kenya Easily For Profit

    Step 1: Draft an effective wines and spirits business plan in Kenya that will act as your map in starting this business. Step 2: Identify a strategic Location as this is key in your business since it determines the number of customers in your firm. Step 3: Registration of your business name through the eCitizen portal and you can only register ...

  16. How to Run a Successful Wines and Spirits Shops in Kenya

    Develop an Online Presence. Similar to any other business right now, it's important that your Wines and Spirits Shops in Kenya has an online presence. With 81% of shoppers researching online before making a purchase, your business needs to show up in search results. Ensure your business has a working website and that it's optimized for ...

  17. BUSINESS PLAN CHAPTER ONE 1.0 EXECUTIVE SUMMARY

    Download Free PDF. View PDF. BUSINESS PLAN CHAPTER ONE 1.0 EXECUTIVE SUMMARY 1.1 DESCRIPTION OF THE BUSINESS SHAVIVA Wines and spirit will be initiated by Miss Tanui who will be the owner by the end of this year. She is to complete a course in supply chain management certificate in Kabete Technical Training Institute.

  18. A Business Plan For A Wines and Spirits Shop in Kenya Would ...

    A business plan for a wines and spirits shop in Kenya would include the following key elements - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. A business plan for a wines and spirits shop in Kenya should include several key elements: an executive summary providing an overview of the business; an analysis of the industry and target market ...

  19. 4 Tips For a Successful Wines and Spirits Business in Kenya

    We have worked with 100s of small and medium size Wine and Spirits in Kenya over the years and gathered great insights. These insights into the liquor store world have allowed us to see what works and what doesn't work. ... 4 Tips For a Successful Wines and Spirits Business in Kenya. November 16, 2021 Posted by: simba001; Category: Reatil POS ...

  20. BY STEPHEN NJURAITA MWITARI

    The wines and spirits industry is very complex compared to beer due to the number of players. Wines and spirits are manufactured while others are imported ready for consumption by more than 10 companies in Kenya today. Whereas most spirits consumed locally are produced within the country, wines are imported from various countries all over the ...

  21. BUSINESS PLAN CHAPTER ONE 1.0 WINE BUSINESS EXECUTIVE

    Download Free PDF. View PDF. BUSINESS PLAN CHAPTER ONE 1.0 EXECUTIVE SUMMARY 1.1 DESCRIPTION OF THE BUSINESS SHAVIVA Wines and spirit will be initiated by Miss Tanui who will be the owner by the end of this year. She is to complete a course in supply chain management certificate in Kabete Technical Training Institute.

  22. Start a Wine and Spirits Business in Kenya

    Obtain Liquor License in Kenya. This is the most critical component when starting a wine and spirits business in Kenya. You cannot operate a wine and spirits business in Kenya with a Valid liquor license. The cost breakdown for Liquor License (in Nairobi) is as follows: 1. Liquor license application 6,000. 2.

  23. SHAVIVA WINES &SPIRITS BUSINESS PLAN...

    The business will be dealing with selling wines and spirits and offering services associated with spirits. The business is supposed to commence by the year 2021. 1.2 MARKETING PLAN. The business will target the market within Nairobi center and area surrounding it. As the business expands the market will also expand and this will enable the ...