How To Start A Cereals Business In Kenya

You can start this business with just Shs 15,000. This is just enough to buy you single bags of some of the hot selling cereals in the market like beans, rice, maize and green grams.

Legal requirements

Single business permit, fire extinguisher. You might be required to have medical certificate.
Some of the equipment required:
1 Storage bags
2 Weighing scale
3 Measuring containers
4 Tags to show name and cost of cereals
5 Packaging materials
6 Sieve
7 Wooden pallette

How to get started
1. Identify a supplier. We have suppliers in places like Nyamakima in Nairobi. As the business grows, try to avoid middlemen and source directly from farmers. Go to rural areas and strike good deals with farmers.
2. As you do your research, compare prices from different suppliers and source from the ones selling at a lower price. Consider factors such as logistics. Also ensure that the cereals are completely dry when purchasing.
3. It is also wise to buy cereals such as maize during high seasons because the prices are lower then.
4. Start with the fast-moving cereals such as rice, beans, porridge flour and green grams. You can do a research in your area to know cereals that sell fast.
5. You don’t need to have a lot of money. Start by buying small amounts of the cereals, sell and increase varieties and quantities with time. If you can’t afford a shop, start selling from your house or a kibanda.
6. Base your shop in a strategic location or in a densely populated place. In this digital age, think about using online platforms such as Facebook to reach more customers.
7. On storage , cereals must be stored in dry places to avoid rotting. You must also ensure that the area is free of rodents.

The profits you make from cereals business will highly depend on where you buy your stock and how you market and sell to your customers. Build connections with institutions, hotels and organizations that need cereals in bulk.

The cereals business operates best on a “buy low-sell high” basis. You need to do your proper research and identify places that you can source for cereals cheaply.

Then compare these prices with what the local wholesalers/retailers are selling. For example the best place to source for cereals cheaply in Nairobi would be nyamakima. A good place to source for pishori rice would be mwea.

At first you may need to identify traders who sell cereals (like in nyamakima) but in the long run it’s always better to cut off the middlemen and go for the cereals from the farmers themselves.

One thing to also look out for would be seasons. It wouldn’t be wise to purchase maize during the low season since the prices are very high at this point and when the farmers start harvesting you’ll be left with stock that is not moving. Always buy during the high season when prices are cheap.

*Written and compile By* Gabriel Your business mentor and consultant For more inquiries whatsapp 0741351726