START A WINES AND SPIRITS BUSINESS IN KENYA
Starting a wines and spirits business in Kenya has proven to be highly profitable due to the constant level of consumption of these products.
NACADA did a survey and analysis which concluded that more than 15 Million individuals consume alcoholic substance in Kenya.
The analysis showed that around 12 Million of these Kenyans spend at least Ksh. 100 occasionally when purchasing wines and spirits at a go. This makes the liquor business one of the most lucrative businesses one can venture.
Is a Wines and Spirits business in Kenya Profitable?
As stated in our introduction above, you can clearly see that a huge part of the Kenyan population are seemingly trusted customers to certain Liquor stores. After a long day of working or during a holiday, many people will definitely head to the liquor store to catch a bottle of liquor, wine, or even a spirit.
The Wines and Spirits sales market is rapidly growing due to the affordability for those who can’t afford beers due to the low income levels. We’ve seen that a liquor store suppliers make at least a 100 shillings from a single takeaway.
Moreover, a sit-in customer can get to spend upto Ksh. 300 in a day whilst takeaway customers could spend upto Ksh. 230 in a day. Therefore, starting a wines and spirits store in Kenya will certainly beneficial and you can start one with low budgets of as low as 100K.
Cost of Starting a Wines and Spirits Business in Kenya
Many entrepreneurs usually wonder and worry about the cost of opening a wines and spirits store in Kenya. First, this will rely on whether you’re planning to run your business in a storefront, or online.
The cost of starting a liquor store and bar for your wines and spirits in Kenya ranges from Ksh. 500,000 to 10 Million shillings depending on the size of your business. This budget will definitely cover the inventory sector, legal fee requirements, adequate physical space, and even your marketing expenses.
Expenses for Starting a Wines and Spirits Store
- Inventory cost of Wines and spirits
- Rent Payment (For Storefront and Bar)
- License Fees & clearance certificates
- Utility expenses i.e. Water, electricity etc.
- Insurance covers
- Marketing fees for advertisement
- Staff expenses in case you have employees
What you need to open a Wines and Spirits business
- Wines and Spirit Inventory
- Legal Business license
- Insurance cover for your business
- A Display counter
- Wines and spirits crockery
- Utility expenses and bills
- An entertainment system
- Tables and Chairs
We recommend you to consider the startup costs, ongoing expenses, and the market trends before opening a liquor store business in Kenya. This will help you set up a good strategy and keeping your budget intact.
Factors to Price Liquor in your Bar in Kenya
- Competition: Make sure you check your competitors’ pricing model to avoid underpricing or overpricing your wines & spirits. Ensure your price is not only profitable but also fair and competitive.
- Alcohol Types: Note that different types and brands of wines and spirits will definitely vary in cost. Some luxury brands are usually more expensive than regular liquor brands.
- Distributors’ costs: The cost of your stock supplies from the distributor will highly affect your sales’ price thus determining the amount charged when selling.
- Location: If you locate your wines and spirits store in regions with high economic and financial activities, then you can charge prices slightly higher. Remember to pick places with a high foot traffic, easy accessibility, low crime rate, and areas with low levels of competition.
Cost of Wines and Spirits Licensing in Kenya
A wines and spirits business license in Kenya can cost you upto Ksh. 50,000. When opening your liquor store, there are several licenses you’ll need apart from the liquor license.
Legal Requirements for Wines and Spirits business
- County council business license: Ksh. 3,500
- NEMA approval: Ksh. 3,000
- Health Certificate: Ksh. 3,000
- MCSK License: Ksh. 3,000
However, the liquor store licensing costs might vary from one county to another. This is usually affected by factors like daytime operation duration, and the business type. You’ll also be needed to provide the business’ name, KRA Business pin, physical address, and certain identification documents.
Types of Licenses for Wines and Spirits businesses
- General Retail Alcohol License
- The Wholesale Alcohol License
- The Brewers’ Alcohol License
General Retail Alcohol License
This license is meant for individuals who want to sell wines and spirits from their own establishments like liquor stores, clubs and bars.
The Wholesale Alcohol License
This is a license for entrepreneurs who seek to distribute wines and spirits from distillers to the retailers.
The Brewers’ License
This license is meant for entrepreneurs who want to start producing their own unique and original liquor brands.
List of Liquor Business Licenses in Kenya
- General Retail License – Ksh. 50,000
- Wholesale License – Ksh. 50,000
- The Brewers License – Ksh. 1,000,000
- Bottler’s License – Ksh. 250,000
- General Retail (Off License) – Ksh. 24,000
- Import Alcohol License – Ksh. 1,000,000
- Restaurant Alcohol Drinks License – Ksh. 30,000
- Hotel Alcohol Drinks License – Ksh. 50,000
- Supermarket & Franchised Retail License – Ksh. 80,000
The illustration above is a list of liquor licenses you’ll need to acquire as soon as you’re ready to start a wines and spirits business in Kenya today.
Therefore, as soon as you decide on the type of liquor business you’re opening, make sure you get a license to avoid unnecessary conflicts with the respective authorities.
How to start a Wines and Spirits business in Kenya- Step by step
How can I start a Wines and Spirits business in Kenya?
- Seek capital
First, do your research and find out how much it will cost you to start up your liquor business.
- Identify a suitable location
Upon securing your adequate capital, look for a suitable location, best for your business
- Have Legal documents
Make sure you have all the required legal documents to register your business so that you can acquire your business permit and license.
- Find your supplier
Trace a liquor supplier you can rely on to prevent running short on supplies. You can inquire from other successful wines and spirits suppliers to get connected with reliable suppliers.
- Furnish your setup
Upon cleaning the business space, you’ll conclude with furnishing it with adequate shelves, tables, a counter, and seats as well. If you’re opening a bar along your store you’ll also require an entertainment system.
Wines and Spirits business FAQs
A wines and spirits business in Kenya can make from Kes. 1,500 – Kes. 5,000 in a day. However, wholesalers can make upto Kes. 5,000 to Kes. 20,000 in a day.
This is one of the most profitable businesses to venture in Kenya. Statistics have shown us that around 13M Kenyans drink per day; spending 200 shillings averagely on a single purchase.
The cost of starting a liquor store and bar for your wines and spirits in Kenya ranges from Ksh. 500,000 to 10 Million shillings depending on the size of your business. This budget will definitely cover the inventory sector, legal fee requirements, adequate physical space, and even your marketing expenses.
A wines and spirits business license in Kenya can cost you upto Ksh. 50,000. When opening your liquor store, there are several licenses you’ll need apart from the liquor license.
The average cost of acquiring a liquor store license in Kenya is Kes. 10,000 per annum. This license is acquired from the local county liquor licensing board.
Applying for a wines and spirits or liquor license can take upto 4 – 6 months or even longer.
The cost of starting a liquor business in Kenya ranges from Ksh. 500,000 to 10 Million shillings depending on the size of your business.
The cost of starting a liquor store and bar for your wines and spirits in Kenya ranges from Ksh. 500,000 to 10 Million shillings depending on the size of your business.