February 28, 2025
The animal feeds business is a thriving venture in Kenya, driven by the country’s growing livestock and poultry farming industries.
With farmers constantly seeking high-quality and affordable feeds for their animals, this business offers a reliable market and excellent growth potential.
Whether you plan to manufacture feeds or operate a retail outlet, the animal feeds business can generate steady revenue with proper planning and execution.
Four key reasons support starting an animal feeds business in Kenya, namely:
Kenya’s agriculture sector heavily relies on livestock and poultry farming, creating consistent demand for animal feeds.
Animal feeds cater to a wide range of livestock, including poultry, cattle, pigs, and fish, allowing you to target different farming niches.
The business offers attractive profit margins, particularly if you source raw materials in bulk or manufacture your own feeds.
You can start small with a retail shop and expand into manufacturing or wholesaling as your business grows.
Let’s explore essential steps to starting an animal feeds business in Kenya:
Understanding the animal feeds market is essential for your success.
Key research areas when starting a business selling animal feeds include:
Identify farmers in your area who keep poultry, dairy cows, pigs, or fish.
Four main feed types with high demand in Kenya are:
Analyze existing animal feed businesses, their pricing, and quality.
Pro Tip
Focus on underserved areas or niches, such as organic feeds or specialized fish feeds, to gain a competitive edge.
You can operate the animal feeds business in several ways:
Buy feeds from manufacturers or distributors and sell to farmers.
Ksh 100,000–500,000.
Purchase feeds in bulk and supply to retail shops or large-scale farmers.
Ksh 500,000–1,000,000.
Produce your own animal feeds by sourcing raw materials like maize, soybean, and fishmeal.
Ksh 1,000,000–5,000,000.
Pro Tip
Starting as a retailer or wholesaler is more affordable and allows you to learn the market before venturing into manufacturing.
A solid business plan will guide your operations and help secure funding if needed.
Key Sections
Highlight your business goals and target market.
Include insights from your research.
Budget, pricing strategy, and expected profit margins.
Outline your sourcing, production (if applicable), and distribution methods.
Pro Tip
A business plan is essential for securing loans from banks or grants from agricultural development programs.
Compliance with government regulations is crucial in the animal feeds business.
Steps to registering your animal feeds enterprise involve
Register your business with the BRS(Business Registration Bureau) on the eCitizen platform.
Apply for and obtain a Single Business Permit(SBP) from your local county office.
You need two certifications if your business is to manufacture and sell animal feeds, namely:
Apply for certification from the Kenya Bureau of Standards (KEBS)
Apply for licensing from the Kenya Agricultural and Livestock Research Organization (KALRO).
Key considerations to ensure the sourcing of quality stock and inputs include:
Pro Tip
Quality is critical to building trust and retaining customers in the animal feeds business.
The location of your shop or factory is vital to your business’ success.
Ideal locations for setting up an animal feeds outlet include:
Pro Tip
Ensure your location has adequate storage space for feeds to prevent spoilage.
Competitive pricing attracts farmers while ensuring profitability.
Factors to consider when setting prices for animal feed offerings include:
Base your prices on wholesale or production costs.
Analyze competitor pricing to stay competitive.
Aim for margins of 10–30%, depending on feed type and demand.
Ksh 3,500–4,000 per 50kg bag.
Ksh 2,500–3,000 per 50kg bag.
Ksh 2,800–3,500 per 50kg bag.
Effective marketing ensures steady customer flow and long-term success.
Viable marketing strategies for advertising your animal feeds venture:
Use platforms like Facebook and WhatsApp to reach local farmers and promote special offers.
Distribute flyers in farming areas and place banners near your shop.
Collaborate with livestock associations, cooperatives, or veterinary clinics to gain referrals.
Encourage satisfied customers to recommend your business.
Pro Tip
Attend agricultural trade fairs to network and showcase your products.
While profitable, animal feeds businesses often face the following challenges:
Feed prices are highly influenced by fluctuating costs of maize, soybean, and other inputs.
Source materials locally or in bulk to reduce costs.
Many businesses sell animal feeds, especially in urban areas.
Differentiate with quality, affordability, or specialized feeds.
Feeds can spoil if not stored properly, leading to losses.
Use well-ventilated storage spaces and stock manageable quantities.
Farmers may distrust new brands or products.
Offer samples or discounts to build trust.
A breakdown of expected startup costs for an animal feeds enterprise include:
Ksh 10,000–30,000/month.
Ksh 100,000–500,000 (depending on scale).
Ksh 500,000–2,000,000.
Ksh 20,000–50,000.
Ksh 5,000–20,000.
Ksh 150,000–2,500,000.
An overview of projected earnings a business selling animal feeds is as follows:
Ksh 5,000–20,000 (depending on location and scale).
Ksh 150,000–600,000.
20–30% of earnings from selling animal feeds
The animal feeds business in Kenya is a promising venture with high demand and excellent growth potential.
By starting small as a retailer or wholesaler and gradually expanding into manufacturing, you can establish a profitable and sustainable operation.
Focus on sourcing quality products, building trust with farmers, and adopting effective marketing strategies to succeed in this competitive industry.