How to Start a Bakery Business in Kenya: 6 Easy Steps

Do you love baking? Are you thinking about how you can use your baking skills to make money? If you’re fascinated with baking and want to turn it into business, we’ll show you how to start a bakery business in Kenya.

Starting a bakery business is a very profitable idea you can explore if you know how to carry it out properly. This is because baked goods are in high demand and sell out quickly. It’s also among the best businesses to start in Kenya today.  However, it needs a lot of determination, expertise, passion, and hard work to succeed, but it’s a great way to earn extra income. 

The following are tips on how to start a bakery in Kenya:

  1. Sharpen you skills
  2. Write a business plan
  3. Find bakery business location
  4. Get business licenses and permits
  5. Market your business
  6. Network

If a bakery is a business you wish to venture into, here are helpful procedures for starting a bakery business in Kenya.

How to Start a Bakery in Kenya

Here are the exact steps to follow when setting up a bakery business in Kenya.

1. Sharpen your Skills 

If you don’t have good baking skills, then you need classes. The secret to building an impeccable clientele base is giving them quality sweet delights. You don’t need a client list before setting up the business.

If your first client likes what you’re serving, they will recommend you to their family and friends. And in no time, your business will be thriving. Baking classes are not expensive and do not take long either.

But if you have confidence in your abilities, you can try training yourself via YouTube tutorials to prefer the arts.  Some good bakers are self-taught; attending classes is not a must.

Also, you can look for a mentor with the same business experience to train you. You can work for them for a while and start your business when you gain confidence in your skills.

Also Read: How to Start a Welding Business in Kenya 

2. Write a Business Plan 

A business plan is essential for any type of business since it provides the investor with a guide for managing a profitable investment. Therefore to have a successful bakery business, you should start by writing a business plan.

Ensure to capture the following in your bakery business plan:

  • Startup cost
  • Strengths and weaknesses
  • Business location
  • Source of startup capital
  • Marketing strategies
  • Projected profits

3. Find Bakery Business Location 

Locate a strategic business site that is visible and has a high population. Consider your safety, budget, target market, and competition when looking for a business location. Also, consider the bakery’s size and space and its accessibility to suppliers.

A small bakery doesn’t require a lot of space. If you’re working on a tight budget, you can start baking from home to save money for business licenses and permits. If you opt to rent a space, ensure it is fit for baking.

There are several bakery setup options. Go with the one that suits you best. Once you set that out, furnish it with the right bakery equipment.

Also Read: How to Get Capital to Start a Business in Kenya

4. Get Business Licenses and Permits

It’s essential to run a legal bakery business. To start a full-fledged bakery, you must register your business name at Ksh. 1,000. To register your bakery business as a Limited Company will cost approximately Ksh. 30,000.   

You will also require the following business licenses and permits.

A Single Business Permit

A single business permit can be obtained from county government offices. The cost differs from one county to another, but it’s around Ksh 5000 yearly. 

Food Hygiene Certificate 

The bakery’s working environment should be hygienic and suitable for food preparation. The certificate shows that the premises are kept clean and hazard-free. A food hygiene certificate costs Ksh. 300.

Food Handling Medical Certificate

You need to ensure that everyone handling products in your bakery is free from diseases to avoid possible transmission. That is where the certificate comes in. The certification costs Ksh 600 and is valid for six months.

A Kenya Bureau of Standards License  

To run a full-fledged bakery, you’ll need to get a KEBS license, which costs around Ksh 20,000.     

Fire Safety Certificate 

Most of the appliances you will use to bake use electricity.  Therefore you need to prepare yourself beforehand in case of a fire hazard. You must have equipment such as a fire extinguisher. The fire safety certificate costs Ksh 3000 annually. 

5. Market Your Business 

Once you’ve established your bakery, you’ll need to advertise it and promote yourself so you may have regular clients placing orders or visiting your bakery. Your marketing approach will determine your bakery’s success. Study the market and devise a strategy that works best for you.

In this digital era having a website and social media presence will go a long way in setting your bakery apart. Marketing expands your client base and increases growth.

6. Network 

Connect with industry experts through community events and baking competitions held yearly. This will allow you to improve your skills and product creation, make meaningful connections, and grow your customer base.

Necessary Requirements to Start a Bakery Business

Rule number one in a business is that you should never get more than what is necessary for a startup. Here are the three categories of essential bakery equipment 

Ingredients

To determine the ingredients you need, you must first figure out which baking niche you will be doing.  Do you want to bake cakes only? Which types of cakes? Will you mix with cupcakes, brownies, and cookies?  

After answering these questions, proceed to get whatever you may need. Survey the market, and go for the best deal you’ll find. Some of the must-have ingredients include:

  • Wheat flour
  • Baking powder
  • Icing sugar
  • Sugar
  • Milk
  • Eggs
  • Flavor essence

It’s good to buy in bulk at a lower price but don’t purchase more than what you need for a certain period.

Equipment 

These are the essential equipment that every baker needs: 

  • Cake baking tins
  • Cake nozzle set
  • Oven
  • Hand mixer
  • Cake icing spatula
  • Bread baking tins 
  • Cake decorating turntables

Furniture

  • Tables 
  • Stools
  • shelves

Types of Bakery Businesses in Kenya

There are two main categories of bakeries; retail and wholesale. The two types of bakeries make the same products but have different needs and customer niches.

Wholesale Bakeries

Wholesale bakeries market their baked products to commercial businesses such as dells, cafes, bread shops, and restaurants. Wholesale bakeries are generally larger than retail bakeries since they have to meet the demands of commercial business.

Also, they don’t need to have a front house or be located in a high populated area since they don’t serve a typical clientele. Instead, they require ample space and equipment because they produce many products.

Advantages of Wholesale Bakeries

  • Stable customer base
  • Consistent revenue
  • Flexible rent location

Disadvantages 

  • Transports large amounts of baked products
  • No front-of-the-house equipment
  • No front-of-the-house maintenance 
  • High startup costs

Retail Bakeries  

They are the most common types of bakeries as they sell directly to consumers. Retail bakeries require front and back house space. Below are the types of retail bakeries.

Bakery Cafe 

Bakery Cafe is a combination of cafes and bakeries selling baked products such as bread, pastries, cookies, and coffee & tea. They often have a dining space where clients can have their meal.

Bakery Food Trucks

These bakeries sell baked products from a mobile truck rather than a brick and motor store. Due to limited space, most bakery food trucks dont bake in their mobile truck. Instead, they bake their products in a commissary kitchen in advance.

Specialty Bakeries 

Specialty bakeries usually focus on one type of baked product like wedding cakes, cupcakes, or gluten-free items. These types of bakeries are typically successful because they have a specialized product that people want and cannot find it elsewhere.

Specialty bakers can offer their trademark flavors, building a devoted clientele base.

Counter Service Bakery

These types of bakeries have a front-of-house and no sitting space. They do better in highly populated areas where customers order freshly baked products.

Home Based Bakery 

This bakery allows you to bake products from the comfort of your home. It has a cheaper startup cost, and you may gradually expand it over time. Your clients can come to your home to buy, or you can deliver to pick-up points.

However, It needs an ideal and persistent marketing approach. It’s good you have a long-term strategy for expanding your home-based bakery business. 

Advantages of Retail Bakeries 

  • Freedom to choose theme and store design
  • Goods are attractively showcased
  • Lots of customer interaction
  • Lower startup costs

Disadvantages 

  • Marketing cost
  • Inconsistent revenue
  • High rent 

Bottom Line 

Starting a bakery business is not a walk in the park, just like any other business. But there you have it all; how to start a bakery business in Kenya. As long you double-check every aspect, you’re good to go.

Your bakery’s success will depend on the degree of your dedication. Ensure you listen to what customers want and follow instructions regarding how they want their products baked. This will make them come over and over again and even refer you to their friends, building a loyal clientele base.

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