This is a definitive guide to starting a profitable butchery business in Kenya. We will be going through the exact steps you need to start a butchery in Kenya. You will learn everything from requirements, profitability, cost, equipment, shop design, and supplier selection, to pricing.
We will also cover some tips you can use to improve your meat sales and the challenges you should expect to face.
By the end of this guide, you should be able to comfortably start and run a profitable meat business in Kenya.
Let me write your business plan...
Not sure where to start your 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?
We charge from:
KSh 2,000
Tap the button below to chat on WhatsApp or call 0713140158.
Let’s get started.
Let me write your butchery business plan…
Not sure where to start your butchery 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?
Contact us for more info.
Tap the button below to chat on WhatsApp (0741437763) or call 0713140158.
Overview of the Butchery Business in Kenya
Roughly 24 million people in Kenya consume meat products every year. The demand for meat products in the country has been estimated at 43 thousand metric tons annually. In fact, according to reports, the demand for meat products is higher than supply.1
To put this into perspective, the average Kenyan consumes 15kgs of meat annually, with Nairobi residents eating two kilos more than the rest of the country, according to the Kenya Markets Trust. Other findings indicate that most Kenyan families eat meat once a week.efn_note]The Star, Most Kenyans eat meat once a week, says new report[/efn_note]
To meet this demand, Kenya’s meat production has been growing at an average rate of 3% since 1971. For instance, in 2020, Kenya produced 592,858 tons of beef.efn_note]Statista, Total production volume of meat in Kenya from 2010 to 2020[/efn_note] That is almost 600 million kilograms of meat.
Given that the average price of 1kg of meat in Kenya is KSh500, it means that the country produced meat worth almost KSh 3 billion in 2020 alone.
This means that Kenya has the potential to become East Africa’s meat hub, particularly the Eastern region which produces beef from dairy cattle and goats that are reared in large numbers. All this proves that starting a butchery business can be a profitable venture if you have the right strategy.
Key Stats From Statista on Kenya’s Meat Market 2
- Revenue in the Meat market amounts to US$9,175.00m in 2023. The market is expected to grow annually by 10.59% (CAGR 2023-2028).
- In global comparison, most revenue is generated in China (US$260.40bn in 2023).
- In relation to total population figures, per person revenues of US$159.70 are generated in 2023.
- In the Meat market, volume is expected to amount to 1,457.00m kg by 2028. The Meat market is expected to show a volume growth of 6.0% in 2024.
- The average volume per person in the Meat market is expected to amount to 19.58kg in 2023.
Is a Butchery Business in Kenya Profitable?
Yes, the butchery business in Kenya is profitable. The industry has high profit margins, as it buys livestock cheaply from farmers and sells the end product at a higher price to customers.
This business does not require much capital to set up and you are likely to make a good profit if you have a reliable customer base and a good location.
However, due to low barriers to entry to the business, there is stiff competition from small and big players in the market.
As a result, smaller businesses are forced to improve their products and services to stay ahead of the competition.
Let me write your butchery business plan…
Not sure where to start your butchery 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?
Contact us for more info.
Tap the button below to chat on WhatsApp (0741437763) or call 0713140158.
What Do You Need to Start a Butchery Business in Kenya?
To start a butchery business, you need to have the necessary funding, equipment, permits, licenses, and a good location for your business. You also need access to capital for expansion and knowledge of how to run a successful business in an industry with stiff competition.
Butcheries are mostly run from informal settlements and, therefore, require little initial investment. However, they face the challenge of finding a stable source of raw materials and demand for their products.
For this reason, you need to find a location in a good area with an established market.
How Much Does it Cost to Start a Butchery Business in Kenya?
The cost of starting a butcher shop in Kenya can vary from as low as KSh 20,000 to as high as KSh 1,000,000. There is no standard amount to quote because startup cost varies depending on such factors as the size of your butchery business, location, and the equipment you buy.
Of course, this is a tricky question to answer given that everyone has different starting points. While some people prefer starting a fully-fledged butchery business in Kenya, others might not have the financial muscles to do so.
So, to get a good idea of how much you will need to start a butchery business in Kenya, you will need to do a detailed breakdown of everything you intend to buy.
You should also include the amount for your initial stock and other overheads such as marketing, paying employees if any, slaughterhouse fees, transportation, and so on.
That said, here is a rough estimate of the cost of starting a butcher shop in Kenya, based on the location:
- Low Income Areas – KSh20,000 -KSh100,00
- Middle Income Areas – KSh100,000 – KSh500,000
- High Income Areas – KSh500,000 – KSh1,000,000
Steps to Starting a Small Butchery Business in Kenya
- Get the required capital
- Find a suitable location
- Come up with a business name
- Draft a Business plan
- Register your Business
- Buy the Necessary Equipment
- Set up Your Butchery
- Get a Good Supplier
- Hire staff if required
- Develop a marketing strategy
- Start Selling
Step 1: Get the Required Capital
In order to start a butchery, you will need some capital. Start by determining the amount of money you will require for the business and how you plan to get it.
Your sources of funds may include:
- Personal savings
- Loans from family and friends
- Personal bank or credit line
- Family trust fund/business trust
- Savings and loan association
- Venture capital
- Business development funds
- Funds from a partner
The amount of capital you need will depend on how much money you can afford to invest in the business. The return on investment (ROI) will vary from one business to another.
For example, a butchery requires equipment and extra items such as refrigerators, freezers, and tables for cutting up meat products for sale. It also needs space to store raw materials and work with meat.
If you are looking to run a large-scale butchery, it is recommended that you have at least KSh100,000.
This will help you cater for the initial overhead costs such as buying equipment, location rental, and salaries for your employees.
Otherwise, if you just need a small local butchery, you can start with as low as KSh 20,000.
READ FULL GUIDE:
How To Calculate Realistic Business Startup Costs [For Beginners]
Step 2: Find a Suitable Location
The business location should be near your target market. We recommended that you first assess the potential consumer base by finding out where they live or mostly eat.
You can do this by asking your friends and family members where they usually go for meat products.
Based on the information you have gathered about your target market, choose a location that is accessible to them.
Other factors to consider when choosing a business location include:
- Proximity to schools
- Proximity to public transport
- Proximity to potential suppliers of raw materials
- Availability of low-cost labor (if your business will require it)
- Availability of other butchery businesses
- In a nutshell, a good location for your butchery business in Kenya should:
- Be easily accessible
- Be in a clean surrounding
- Have a majority of people consume meat
- Be close or in a town or city
- Be near a suburb or big institutions
- Not have many other competing butchery businesses
- Be close to entertainment joints such as clubs where meat is largely consumed
READ FULL GUIDE:
10 Factors to Consider When Choosing a Business Location in Kenya
Step 3: Come Up With a Business Name
Once you have purchased the correct equipment and located a suitable location, it is time to come up with a name for your Butchery business.
Start by creating a business name3 that will be easy to remember. You can choose to name your business after yourself, a family member, the place it is located, or any other suitable name.
If you intend to set up shop in a rural area, it is advisable that you select a business name that will be easily pronounced by the locals. This will help customers identify and locate your butchery business.
Choosing a good brand name might sound simple, but it is actually quite a serious matter.
- Your business name should be:
- Short and easy to pronounce
- Appropriate for butchery business
- Different from your competitors’ names
- Descriptive of what you do in order to generate interest among customers
- Memorable
- Not offensive
Step 4: Draft a Butchery Business Plan
To come up with a successful butchery business plan in Kenya, you will need to define your objectives, strategies, and the steps to achieve them.
For example, if you have decided that your target market is the low-income market in Kenya, then one of your goals should be to provide the best possible products at affordable prices. Your marketing strategy should target this market.
Your business plan should include all these elements plus a SWOT analysis4, which is an assessment of the strengths and weaknesses in your business as well as opportunities and threats that you might face in the future.
However, don’t go overboard and include every single detail in your business plan. Identify the information that is important and leave out the rest. A business plan is a flexible document and you can improve and tweak it as your business grows.
In a nutshell, you should focus on the following points in your butchery business plan:
- Your goals and objectives
- Your strategies to achieve the desired results.
- The SWOT analysis which is an assessment of your strengths, weaknesses, opportunities and threats.
- A detailed budget projection
- Your research findings if you did a research
Step 5: Register Your Butchery Business
Once you have come up with a business plan, you will need to register your new butchery business.
To do this, you will have to follow the steps listed below:
- Choose a suitable name for your business
- Obtain a certificate of incorporation from the Registrar of Companies. This confirms that you are allowed to own a limited liability company in Kenya
- Apply for an operating license from your local authority
- Get a Kenyan tax identification number. This will help you file and pay the correct taxes.
At this point, consider whether it is worthwhile to offer franchise opportunities to prospective business partners. Franchisees will benefit from your established brand name and customer base while you get their support in running your business.
While at it, make sure to obtain the necessary certificates for food safety. To start a butchery business in Kenya, you will need to have certain certificates, permits, and licenses.
Some of the most common butchery business requirements in Kenya include:
- Food handling certificate
- Fire safety certificate
- Single business permit
- Public Health certificate
You should acquire these before you can start selling meat in your butchery business.
READ FULL GUIDE:
Step 6: Buy the Necessary Butchery Equipment
Before you can start your business, you will need to get the necessary butchery equipment in place.
Complete List of Butchery Equipment in Kenya and Their Prices
Equipment | Function | Price | Where to Buy |
---|---|---|---|
Refrigeration Units | Including walk-in coolers and freezers for storing meat at appropriate temperatures | ||
Display Cases | To showcase various cuts of meat to customers | ||
Cutting Boards | Large, durable boards for cutting and preparing meat | ||
Butcher Knives | A variety of knives for different cutting tasks | ||
Meat Tenderizer | to tenderize tougher cuts of meat | ||
Meat Hooks | Used for hanging and storing meat | ||
Meat Scale | For weighing and portioning meat accurately | ||
Bone Saw | Specifically designed for cutting through bones | ||
Work Tables | Sturdy tables for cutting and preparing meat | ||
Wrapping and Packaging Supplies | Including butcher paper, twine, and labels for packaging meat | ||
Meat Tumbler | Helps in marinating and tenderizing meat by tumbling it in a rotating drum | ||
Meat Mallet | Heavy, flat-ended hammer for tenderizing meat | ||
Sharpening Stones or Honing Rods | To keep butcher knives sharp and in optimal condition | ||
Meat Scrapers | For removing excess fat, membranes, or gristle from cuts of meat | ||
Smokehouse or Smoker | for smoking and flavoring meat products | ||
Deboning Tools | Such as boning knives and tweezers for removing bones from cuts of meat | ||
Sausage Stuffer | For stuffing sausages with meat mixtures | ||
Mincing Machine | For processing meat into minced or ground meat | ||
Safety Equipment | Including gloves, aprons, and protective clothing to ensure hygiene and safety | ||
Meat Thermometer | to check the internal temperature of meat for proper cooking | ||
Vacuum Sealer | package meat for freshness and extended shelf life | ||
Meat Grinder | grind meat into different textures and sizes | ||
Band Saw | cutting through bones and larger cuts of meat | ||
Meat Slicer | slice meat into thin and even cuts |
The specific equipment you need may vary depending on the scale and type of butchery business you run. You might not need most of these equipment in your butchery. Only start with what you need and add more equipment as the need arises.
You can choose to buy or lease the equipment you require for your business. Leasing is a convenient option because it allows you to negotiate a good deal on the equipment you want and it can also be prorated over the leasing period.
On the other hand, if you decide to buy equipment, then make sure that they are of high quality so that they will last long.
Finally, set a budget for buying equipment and stick to it. You might have to spend more than anticipated due to unforeseen circumstances, but try your best to avoid this and stick with the budget you created in your business plan.
Step 7: Set Up Your Butchery Shop
After getting the necessary equipment and registering your business, you can go ahead and set up your butchery shop.
It is important that you provide a clean environment that follows health regulations for preparing meat products.
So before you can open your doors to customers:
- Make sure that all surfaces in your shop are restored with fresh paint
- Check the state of your equipment such as refrigerators and ovens
- Clean all hoods
- Ensure that there’s sufficient lighting.
One of the most important things you will need to do at this step step is to design your butchery shop. There are different butchery designs in Kenya depending on the scale and type of butchery you have.
However, there are some general butchery shop designs in Kenya that apply to most meat businesses. If you need to learn more, make sure to check out our complete guide on designing a butchery shop in Kenya.
READ FULL GUIDE:
Step 8: Get a Good Meat Supplier
There are two ways you can acquire meat for your butchery business in Kenya:
- Work with a supplier
- Buy the cows/sheep/goats from the local farmers and slaughter yourself (from a designated slaughterhouse)
Working with a meat supplier
If you decide to work with a supplier, you will have an easier time since you won’t be slaughtering or paying other people to slaughter the animals for you.
When working with suppliers, it is important that you have a good relationship with them because they are critical to the success of your business. So before signing any agreements, determine if you can trust them and hold long-term relations with them.
Looking for a good supplier is crucial to the success of your butchery business. You should be able to get reliable suppliers from asking family and friends or from a referral in your community. If not, then you could try checking out the local butcheries in your area and asking for their recommendation.
Benefits of working with a supplier
- You do not have to worry about the logistics involved in slaughtering and transporting meat.
- Suppliers will deliver your meat products to your shop on a regular basis.
- You can also negotiate good prices with them since you buy their goods wholesale
- You can save time by not looking for the animals to slaughter yourself
- You get only the amount of meat you need to sell in a day. This reduces the chances of meat going bad
- You get already examined meat so you don’t have to pay for that yourself
Drawbacks of working with a supplier
- If you do not maintain good relations with your supplier, then they may fail to deliver meat products on time, so make sure that you have established an effective communication system so that there are no misunderstandings.
- Your supplier might also fail to deliver the number of meat products you ordered, so it is important that you have set out a minimum weight requirement for your meat products.
- Working with a supplier might also reduce your profit margins because the supplier will also be looking to make something.
Buying cows/Sheep or goats and slaughtering them yourself
You can choose to buy cows, sheep, or goats from the local farmers so that you can slaughter them yourself. While this is a good way of ensuring that you have enough meat products on a regular basis, it can be expensive.
For instance, if you are buying one cow or goat a week to supply your shop, then you will be forced to pay for the entire animal and not just the meat products since the suppliers of animals usually do not separate them.
On the other hand, buying the animals yourself might improve your profit margins as compared to buying the meat from your supplier.
In this case, it is important that you know what to look for so that your final product meets the standards of quality. For instance, when buying cows/sheep/goats yourself, check that the animals are healthy and safe for consumption.
There are also rules and laws to keep in mind if you decide to slaughter the animals yourself.
For instance, you will have to slaughter from a designated slaughterhouse/abattoir and not your business premise. Usually, there are people in the slaughterhouses who know how to do it better. All you have to do is take your animal to the slaughterhouse then pay the person who is slaughtering for a small fee.
You might also have to pay the slaughterhouse fee.
Your meat will also have to be inspected and approved by a public health professional before you can transport it to the butchery. You will also have to pay for this. Generally, all the fees combined are not that huge and you should be able to afford them comfortably.
Benefits of slaughtering the animals yourself
- You will be able to save some money and keep more of your profits since you do not have to share them with your supplier.
- You choose the animals yourself so that you can be sure of their quality.
- If you are a good negotiator, you can get a good deal for the animals.
Drawbacks of slaughtering the animals yourself
- You have to pay for your own transportation, which might reduce your profit margins.
- You need to hire a person to slaughter the animals and this will cost money as well.
- You will pay for inspection and approval of the meat, which might reduce your profit margins.
- Slaughtering yourself means you have a lot of meat that might go to waste if you cannot sell it all quickly. Usually, meat start to go bad after two days if it is not well-preserved.
Step 9: Hire Staff if Required
The number of staff you hire will depend on the size of your business and how many customers you get per day.
Staffing can be expensive and a lot of responsibilities fall on your shoulders initially as you have to train them, pay their wages, etc.
You need to ensure that you work closely with them so that they learn your vision and the kind of standards and ethics you want them to adhere to.
It is also a good idea to have a mentor who has been in the business for a long and who is willing to guide you when you are stuck.
Your staff might try to take advantage of you if they think that you don’t know what you’re doing, so make sure that your procedures are clear.
It is also important to note that your customers might not like seeing other people prepare their meat because it affects the perception they have of your business, so this food preparation should be done away from where you are serving customers.
In a nutshell, good stuff for your butchery business in Kenya should be:
- Always neat
- Punctual
- Knows how to work with butchery equipment
- Friendly with customers
- Honest
- Good with math and money. Should be able to do calculations quickly
- Serious about their work
- Follow set guidelines
- Follow Standard Operating Procedures for a butchery business in Kenya
- Understands fire safety measures
- Be free of any contagious illness (all staff should be tested and given health certificate before starting work.
Step 10: Develop a Marketing Strategy
To ensure that your butchery business thrives, you need to invest in a good marketing strategy.
This means that you should spend time coming up with the right market segmentation as well as a good positioning statement that describes what makes your business unique.
Then, develop a comprehensive marketing plan and implement it. Marketing is important because it will help you to know how your business is performing as well as attract new customers.
However, you don’t need to understand all the marketing jargon to do this.
The kind of marketing plan you come up with will depend on:
- The size of your butchery business
- Your budget
- The location of your business. Some areas will require more aggressive campaigns than others
- Whether you will be franchising or not
Ideally, your marketing strategy should be clearly reflected in your business plan.
But if you don’t plan on writing a detailed plan, here are some quick tips you can steal:
Some good marketing strategies include:
- Using social media to target people in your locality
- Using Google My Business to put your business on the local map
- Offer free products such as soup in exchange of buying meat
- Offer discounts depending on the market conditions
- Use word of mouth to let people know about your new business
- Post on relevant Facebook groups. For instance, if your business is in Nairobi you can post in Marketing groups targeting Nairobi people
- Develop a good relationship with your customers and ask them to recommend your business to friends and family
- Create banners about your business and how it can be accessed
One last thing; be always clean!
This is not a marketing strategy per see, but it is no secret that people will most likely buy meat from clean butcheries.
If you are untidy with a lot of flies in your shop, customers will run away and you will soon be out of business.
Step 11: Decide on Pricing and Start Selling
Congratulations! You have successfully set up your own butchery. You have made a great start in the right direction to becoming a successful businessperson in Kenya.
Selling your meat will be challenging. Your prices should be competitive and you must also ensure that you offer good customer service with a smile. If you are passionate about what you do, customers might soon come to know about it.
It is important to note that there are no official regulations about pricing in the butchering industry. It is, however, advised to conduct market research before setting your prices. You can choose to sell your meat on a per kilo basis or by individual cuts and even offer wholesale options for better business opportunities.
The good thing is, meat prices in Kenya are mostly standard. This means that if a kilo of meat costs KSh 400, everyone will be selling at that price.
So, you don’t need to lower your prices to have a competitive edge.
On the other hand, you can’t raise your prices above the market price. This is not a manufactured product so other butchers will most likely have the same quality for the normal price. Customers will go to them instead.
Pricing for cooked meat or nyama choma
Although the price for raw meat will mostly be the same in most shops, you can set your own prices when it comes to nyama choma or cooked meat. This is because you have the chance to improve your quality here and be better than competitors.
For instance, you can serve your nyama with spices, salad, and other stuff that your competitors are not doing.
Once you have decided on your prices, you must make a clear list of what services you are offering and also when these will be available to your clients. Ensure that customers understand your service delivery timelines so that they know what to expect from you.
Challenges Faced by Butchery Business in Kenya and How to Overcome Them
Starting a butchery requires a lot of time and patience. You must make sure you have enough funds to keep the business going until it starts making profits.
The costs involved in setting up this type of business can be high, especially for those planning to open their businesses in cities like Nairobi or Mombasa. Also in order to succeed in the butchery business, you must be ready to face competition from existing businesses.
You will have to deal with some challenges when running a butchery, especially if you are starting on your own. This can be very discouraging and may make you give up at this point.
Some of the biggest challenges you might face when starting a butchery business include:
- Customers’ preferences, where customers might prefer buying from your competitors than you
- Seasonal changes. There are certain times when meat consumption goes down
- Strict competition
- High costs of running the business
The most important thing is to remain strong in the face of challenges. There are always solutions to problems, so be sure to seek them and do not give up easily. You might have some difficulties when you first start out, but if you work hard enough, you will soon reap the rewards.
Tips to Be Successful with a Butchery Business in Kenya
- Do your market research. This will give you a clear-cut idea of how to price your products and what the current market trends are
- Be passionate about what you do. It has been proven that customers can sense the passion for what you do which drives their loyalty to your business
- Have good customer service skills. Treat your customers with respect and be very helpful when you are able to offer professional advice
- Ensure regular stock replenishment so as to avoid running out of the best cuts
- Be a responsible business owner by having a well-thought-out waste disposal system in place that does not pollute the environment
- Always be clean. This can be the difference between people buying from you or your competitors.
Conclusion
Selling meat is a promising business opportunity for anyone who is willing to put the extra work into it. But it does not come without its challenges which are mostly related to competition, pricing, and sales skills.
However, if you have a good strategy, no problem will be too big for you to handle.
That said, here is what you should do now to start a butchery business in Kenya, the right way:
- Assess the market need for the product that you are offering
- Choose a good location for your butchery
- Decide on pricing and budgeting
- Get the correct permits from all the relevant government departments
- Buy equipment that will suit your business needs. This includes equipment for cooking, refrigeration, storage of raw materials, washing facilities etc.
- Buy your first stock of meat
- Hire staff members to help manage the day-to-day operations of your business as you grow.
- Ensure that all employees are trained before opening the doors for business
- Start selling! Provide good customer service and aim to delight your customers with your quality products
- Keep a close track of all expenses throughout the whole process. Make sure that you are not spending more than you make and plan for any unforeseen circumstances in advance.
References
- The Exchange, Demand overwhelming Kenya’s meat supply
- Statista, Meat – Kenya
- Forbes, 12 Tips For Naming Your Startup Business
- Community Tool Box, Section 14. SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats