The process of how to start a baking business at home in Kenya is simple as long as you have the passion and the necessary capital to kick off. There is no doubt baking business is lucrative due to the ever-growing demand for baked products.
Some of the benefits of baking at home are that you can make it either a full-time or a part-time job.
Below are some of the pros and cons of starting a baking business at home in Kenya.
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Advantages of a home bakery
- Cost-effective– A home bakery saves you money since you do not have to rent out any space for your bakery. It is the best option if you have limited startup capital.
- Ready market– The demand for bakery products is ever increasing. With almost everyone consuming them daily, this provides a ready market.
- Allows you to earn money from your hobby– Baking is not only a business but also a hobby. Hence, starting a business is a chance for you to commercialize your hobby.
- Easy to start- a baking business only requires you to have basic baking knowledge. You can look up recipes from the internet, and test them out in case you do not know how to bake.
Disadvantages of a home bakery
- Competition from already established bakeries. – The demand for these products has attracted a lot of players in the market. This creates high competition, especially for the starters.
- Unreliable power supply– Kenya faces frequent power supply disruptions making it challenging for the business. This is due to reliance on electrical appliances to bake. Persistent losses may end up in business losses and customer disappointment.
Although the idea of a home bakery seems very easy to execute, there are some actionable steps that you need to take before your home bakery business is up and running.
Here are the requirements of how to start a baking business at home in Kenya
- Improve your baking skills
- Create a proper business plan
- Select your baking niche
- Plan out your baking space
- Purchase the necessary baking equipment
- Find a reliable supplier for your baking ingredients
- Create recipes for your baking business
- Register your home baking business
- Market your business
- Start baking your products
1. Improve your baking skills
The element of competition in this industry requires top skills if you want to create a market and remain competitive. This you can do through various means such as getting formal lessons, using available online lessons and experience.
However, the more you bake, the better you become. Hence, don’t hesitate to start even when you are not yet perfect.
2. Create a business plan
A home bakery requires a business plan, just like any other business. Some basic contents of a home bakery business plan include:
Bakery name
Your bakery business name should be catchy and memorable. This makes it easier for the customer to remember. It should also be related to the baking industry to avoid confusion.
Market research
This is the most important step of your business plan since it helps you identify the best niche to serve. It involves comparing the market prices of different products in the market. A step that is important when coming up with a good pricing model.
You can do market research by observing the hot selling products in the local bakeries around you. The main tip in doing market research is to engage a few potential customers to understand their needs and preferences.
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3. Select your baking niche
In this case, the niche will determine the types of products to offer. Some of the most common baking products include;
- Cakes
- Bread
- Muffins and cupcakes
- Cookies
- Donuts
- Brownies
Having done extensive market, selecting your baking niche will be an easy step. Another key thing to factor in when selecting a niche is the size of the target market. Most of the home baking businesses in Kenya usually start with cakes, muffins, and cupcakes.
The niche you select also determines the level of creativity you require to stand out. A tip to stand out from your competitors is to specialize in a particular category e.g. birthday cakes, gluten-free bakes, vegan bakes, wedding cakes, etc. specialization gives you an edge over your competitors in a specific field.
4. Plan out your baking space
There is a county council law in Kenya that states that kitchens used to manufacture goods, should not be adjacent to sleeping areas. This law calls for a separation of the main kitchen from your baking kitchen.
However, since a home baking business starts small, you can work on getting a separate kitchen with time.
Having a separate baking space is also beneficial since it helps you separate your household equipment from those of the baking business.
Your baking should be done under very hygienic standards. Handling your baking in an unsanitary kitchen space could lead to the food poisoning of your customers.
It is also advisable to keep children and pets away from your baking environment to minimize contamination.
5. Purchase the necessary baking equipment
Below is a list of some of the key requirements that you need to start your baking business with the approximation at price.
| Equipment | Approximate cost |
| Oven | KES 25,000 |
| Baking tins | |
| Sieve/sifter | KES 100 |
| Cake turn-table | |
| Cake leveler | KES 1,000-3,000 |
| Icing spatula | KES 600 |
| Icing nozzles | KES 1,000-3,000 |
| Fondant smoother | |
| Bread knife | KES 500 |
| Measuring equipment | KES 1,000 |
| Packaging materials | KES 100 per cake |
| Stainless steel Whisk | KES 300 |
The baking equipment required depends on the baking niche that you choose to specialize in.
6. Find a reliable supplier for baking ingredients
It is advisable to find a wholesale supplier for your baking business. Buying goods in bulk is not only cheaper but also ensures there is no slowdown due to material unavailability. You should strive to get wholesalers in your local area who can supply you with the ingredients at an affordable price.
The common baking ingredients include:
| Ingredients | Approximate price |
| Eggs | KES 350 per tray |
| Sugar | KES 7,000 for a 50kg bag |
| Milk carton | KES 660 for 12-500ml packets |
| Icing sugar | KES 900 for 5kg |
| Assorted flavors(vanilla) | KES 200 for 500ml |
| Margarine | KES 1100 for 5kg bucket |
| Baking powder | KES 600 for a 4kg packet |
| Wheat flour | KES 1600 per bale |
7. Create recipes for your baking business
It is good to come up with standard recipes that guide you through the baking process. Take time to test out various recipes until you find the right recipe for you. Using a consistent recipe helps in producing standard products.
Creating recipes also helps account for the ingredients used per baking session. This helps in pricing as the costs are profit margins are easy to calculate.
8. Register your home baking business
Once you are set and ready to start your baking business, it is time to register with the relevant authorities.
There are 2 choices when it comes to registering your baking business in Kenya.
- Registering a business name
This is the more economical of the two options. Go to the nearest Huduma Centre and do a name search for your potential business names. It costs about KES 150 per name search.
The results for the name searches will be ready within 5 working days, and you need to pay approximately KES1, 000 to register the available business name. Your registered business name certificate will be ready for collection in about a week.
- Registering your bakery as a company
The cost of registering a company ranges between KES 25,000-KES 35,000. The process takes an average of two weeks to get a certificate of incorporation.
The additional business permits that you require are:
- County council business permit– This is an annual certificate from the county council. The costs of this certificate vary according to the size of your baking business and the county of operations.
- Food handlers’ medical certificate– This is a mandatory certificate for all food handlers in the country with baking falling in this category. It is valid for 6 months and costs KES 600.
- Food and health certificate– This is a certificate that targets the food premises. The certificate is issued one week after making a payment of KES 300. The certificate is valid for one year.
- Fire safety certificate– Just like all other businesses, you are required to have a fire extinguisher and any other fire safety requirements recommended by a fire safety inspector. This certificate costs KES 3,000.
9. Market your business
Marketing is an important strategy and step that helps keep create awareness of your products to potential customers. There are various marketing strategies you can use to promote your business. Some of them you can do for free while others come at a cost.
- Social media marketing
Social media has become among the best platforms to market your business. Some of the best platforms you can consider include Instagram, Facebook, and Twitter.
- Create a website for your business
A website makes it easy for people to learn more about your business. You can even create a blog on your website where you give people tips and tricks about baking.
A website comes as a complement to social media marketing.
- Word of mouth
The Word-of-mouth referral marketing strategy is among the best and comes at no cost. However, it takes time to benefit from using this strategy.
The best approach to grow this marketing technique is through offering quality and standard products.
- Flyers and posters
Another marketing strategy you can use to create awareness is by creating flyers and posters on your product portfolio.
- Utilize expos
In case you live in an area where they host exhibitions, why not set up a stand during the exhibition to market your products?
10. Start baking
Once you have completed the above steps, you can now begin baking. Remember that baking goods are highly perishable, and should be sold as soon as possible. It is advisable to start with a few products and expand as the business grows.
Is the home baking business profitable in Kenya?
The baking business model is profitable since the majority of the households consume baked goods. The level of profitability depends on competitiveness and hard work.
As an example, the price of a 1kg cake in Kenya ranges between KES 1,000-3,000 depending on the flavor. Having made the product cost and expenses, you should ensure your profit margin is sufficient.
To better understand the baking business, you can also engage a successful baker who has been in the industry longer. It is also important to network with other bakers through baking workshops and seminars.
Finally, you should ensure to do proper accounting for your business. This is the only to better understand business performance. However, you can also regularly engage the services of a professional to help you with the accounting.
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