Biscuits, the delightful confectionary products loved by children and adults alike, offer great business potential in the Kenyan market. In this blog, we will explore the various aspects of starting a biscuit production business in Kenya, including the production process, market analysis, and government support. 

Production Process

To produce delicious biscuits, the process involves combining locally available raw materials such as wheat flour, sugar, margarine, milk, and water in a dough mixer. After mixing the dough, baking powder is added, and it is left to rest for approximately three hours. The prepared dough is then shaped using biscuit molding, stamping, and cutting machines before being baked in an oven. Once baked, the biscuits are cooled, sorted, and neatly packed for distribution.

Production Costs

Assuming a daily capacity of 9,000 biscuits and operating for 312 days per year, the production costs include direct expenses like materials, supplies, and other costs directly involved in the production process. Additionally, there is a depreciation cost for fixed assets, assuming a four-year write-off period at a rate of 25% per year for all assets.

Market Analysis

The Kenyan market offers a promising opportunity for biscuit producers. Biscuits are a favorite among children, making them a popular choice in schools, shops, street vending, marketplaces, and supermarkets. With a ready market and increasing demand, the revenue potential for this business is estimated at US$1,404,000 per year. Moreover, the payback period for this investment is incredibly short, just two months, and the net profit margin is an impressive 92%.

Government Support

The Kenyan government plays a crucial role in supporting industrialists and entrepreneurs. They maintain favorable tax policies for the manufacturing sector, including biscuit production. These policies create a conducive environment for business growth and profitability. Additionally, the government actively participates in trade policy formulation, taking into account the input from industrialists to ensure a thriving business environment.

Conclusion

Starting a biscuit production business in Kenya can be a great venture, considering the ready market and favorable conditions. By following the production process, analyzing the market potential, and leveraging government support, you can establish a successful business in the biscuit industry. With the right approach, your biscuit business can thrive in the Kenyan market and generate substantial profits. So why wait? Grab this opportunity and embark on a deliciously profitable journey in the world of baking biscuits.