How to set up a wines & spirits business in Kenya!

A model take away wines and spirits joint in Kasarani Nairobi!

In Kenya wines and spirits stores are privileged as they offer quality liquor and beer to people frequenting them. As a store owner you have to maintain variety and decorum too.

Getting Started

Most important aspect with starting wine and spirits shop is selection of location from where you operate this business. As different types of wines are imported from dealers for selling in retail you don’t need to bother much about raw as they would be collected as per the need. But you must arrange transportation facility to shift liquor from one location to the other when bringing them in bulk.

In the Alcoholic Drinks Control Act 2010 — commonly known as Mututho Law — the alcohol industry has become more regulated and, consequently, initial high start-up cost is required to cover licenses.

Basically, the following legal procedures and licenses are required;

• a liquor license that costs Sh50,000,
• Approval by National Environment Management Authority NEMA – Ksh3,000MCSK License – Ksh3,000
• a Nairobi City Council licence for registration of the business that attracts Sh3,500.
• Further, you will be required to pay for a health certificate that attracts Sh3,500.

Requirements for setting up

The requirements for setting up depend on your long-term goals and capital constraints. For instance, if you don’t have much capital you can look for a 10×10 ft room and set up a simple wines and spirit takeaway shop. 

With more capital you can set up a sit-in facility with chairs, tables and shelves. On average rent prices range from Ksh20,000 – Ksh50,000 depending on location.

Cost Breakdown

• Licenses – Ksh70,000
• Furniture (Shelves, Display area, Tables, Chairs etc.) – Ksh50,000
• Stock (Inventory) – Ksh50,000
• Miscellaneous – Ksh100,000
• TOTAL – Ksh270,000

Associated huddles

The first challenge you are going to face is intense competition. You will need to provide quality services and best prices in order to retain old customers who will in turn keep coming back with their friends. 

You also need to appreciate the challenge that you can only open your business from 5.00pm – 11.00pm on weekdays and 2:00pm – 11:00pm on weekends and public holidays.

At start up, it will be difficult to procure your products directly from the manufacturers as you have to gain a relationship with them, which will be build with time as your turnover also grows