The wines and spirits business is one of the most lucrative ventures in Kenya largely due to huge demand.
Statistics show that an estimated 13 million Kenyans drink daily spending an average of Ksh 250/= each time. This translates to daily revenue of 2.6 billion Kenya shillings and as a result, many people are venturing into this business so that they can get a share of this revenue albeit small.
If you are wondering how much it will cost you to start a wine and spirits business , wonder no more as we have spelt out in detail the cost of establishing one.
Cost of starting a wines and spirits business
Below is a breakdown of the cost of starting a wines and spirits business;
| Item | Breakdown | Total (Ksh) |
| Licenses | ||
| Alcoholic drinks license | 1 | 50,000 |
| Business permit | 1 | 15,000 |
| Public health license | 1 | 3,000 |
| Fire Safety certificate | 1 | 5,000 |
| Individual medical certificate | 3 employees @ 1000 | 3,000 |
| MCSK | 1 | 10,000 |
| NEMA | 1 | 2,200 |
| Sub Total | 88,200 | |
| Equipments | ||
| Chairs | 30 @ Ksh 1000 | 30,000 |
| Tables | 6 @ Kshs 1500 | 9,000 |
| TV | 2@ Ksh 30,000 | 60,000 |
| DSTV | 1 | 7,800 |
| Music System | 1 | 20,000 |
| Crockery | Assorted Items | 20,000 |
| Wine display and counter | 1 | 30,000 |
| Sub Total | 176,800 | |
| Premises | ||
| Rent | 2 months deposit + 1 month rent.@ Ksh 30,000 per month | 90,000 |
| Renovation | 50,000 | |
| Branding | 30,000 | |
| Sub Total | 170,000 | |
| Working Capital | ||
| Stock | 50,000 | |
| Salary | 3 @15,000 | 45,000 |
| Electricity and water | 10,000 | |
| Miscellaneous | 25,000 | |
| Sub Total | 125,000 | |
| Total | 566,000 |
Below is a detailed explanation of the items in the table above;
Wines spirit licenses
- Alcoholic retail license
A general retail alcohol license is required by bars and related outlets whose core business is selling alcohol. You can obtain this license from your local liquor licensing board in your county.
- Single business permit
This a trading license that is issued to all businesses operating in a county. The cost varies from county to county and the type of venture .Its average cost is Ksh 10,000 which is renewable annually.
- Public health license
This license is issued by the county public health department after inspecting your business premise to confirm that it is fit for occupation.
To pass inspection, ensure you have water and toilets in your premise, there is proper drainage and waste disposal, there are no defect on the walls and floors such as cracks and the building has good ventilation.
The cost of a public health certificate is Ksh 3,000
- Individual medical certificate
This license is a requirement if you are handling food and beverages in your business .Ensure that all your personnel are tested for any communicable disease at a local government hospital .If they pass the test, they will be issued with a medical certificate. The cost of this certificate is Ksh 1,000.
- Fire safety certificate
This is a vital document that you ought to have. It is issued by the local authority in your county. Prior to issuance of this certificate, officials from the county fire department will visit your premise to confirm whether it meets the fire safety standards.
To pass inspection, ensure you have marked fire exits, you have a designated fire assembly ,an evacuation plan in case of a fire and have fire extinguishers and blankets that can be used to put out a fire before it spreads.
Its cost vary from county to county but its average cost is Ksh 5,000.
- MSCK License
This is a requirement for all businesses playing music so as to avoid copyright infringement.
To obtain a MSCK license, visit any of their regional offices countrywide whereby you will give details of your business and then an assessment will be carried out where you will be invoiced the amount to pay.
- NEMA License
This license is given by the National Environment Management Authority to ensure you do not pollute the air by blasting loud music.
Ensure your wine and spirits business is sound proof before NEMA inspects your premises.
The cost of the license is Ksh 2,200.
Wine and Spirits equipments
- Chairs and tables
If you want an establishment where customers can enjoy their drink in your premises rather than do take away, you will need to purchase furniture such as chairs, stools and tables.
The kind of furniture you choose will depend on your branding. i.e. either high end or low end ,the space available and the amount of capital you have to inject in your company.
Plastic chairs range from Ksh 800-1000 depending on where you are purchasing and whether they are arm less. Arm less chairs are quite expensive as compared to the normal plastic chairs.
Metallic chairs and stools range from Ksh 800-1500.The price depends on the quality and where you are buying from. The best place to get cheap but quality metallic furniture is from a ‘Jua kali’ artisan.
As for tables, you have the option of plastic tables, metallic tables or wooden tables. They too will vary in terms of price.
- Wines display and counter
The cost of the wines display and the counter depends on several factors;
- The type of material-Is it glass or wood? Glass is slightly more expensive.
- The length of the display.
- The quality-It goes without saying, the better the quality, the more expensive it is.