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

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

1. Look for Capital

   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 loan.

2. Find a Suitable Business Location

   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.

3. Get the Required Legal Documents

   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

4. Look for a Reliable Supplier

   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.

5. Furnish Your Business Premise and Bring the Stock

   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.