Wines and spirits is one of the best businesses in Kenya because of returns associated with it.
You can either start selling at wholesale level or retail, but wholesale is the best course because the profits are much higher than retailing, the risks are also low.
How to start the business +capital
You need a capital of between Ksh150, 000-Ksh 500,000 to start a sizeable wines and spirits business. The starting capital depends on location since rent charged by premises is not uniform. Areas like Nairobi require higher rent compared to towns like Bomet.
If you intend to sell at wholesale level then you need more than Ksh1.5 million but the average cost is Ksh2 million.
Before you do anything, ensured you secure a license. Wines and spirits license is more expensive than securing a license for a general shop. The cost of trading license ranges between Ksh 25,000-Ksh100, 000 depending on your area of jurisdiction.
Profits from wines and spirits business
This is among the most profitable businesses in Kenya. With a Sh 150,000 shop you are capable of making Ksh1, 500 to Ksh5, 000 per day as profit.
Most small businesses make an average of Ksh 30,000-Ksh 100,000 per month. Wholesalers make Ksh5, 000-Ksh20,000 per day.
Best areas to start the business
Before you decide to start the business ensure that the area has enough population to consume your product. The best towns to start wines and spirits business in Kenya include Nairobi,Nyeri,Kisii,Mombasa,Mtwapa,Busia,Kitengela,Meru,Maua and Thika.