How To Start A Manufacturing Company In Kenya,
When looking to start a manufacturing company in Kenya, there a few things you need to know about the manufacturing sector. The manufacturing industry is the backbone of all other industries and one of the four main areas by the Kenyan government economic agenda. The sector, which is dominated by subsidiaries of multi-national corporations, contributes to approximately 10% of the GDP which the government aims to increase by the year 2022.
In a bid to encourage local manufacturing, The Kenyan government came up with ‘buy Kenya-build Kenya’ strategy. This aims to enhance competitiveness and consumption of goods and services. The strategy pays attention to the issue of quality assurance, and need to innovate for local consumption and external market.
The government also offers tax relief and subsidies to manufacturers geared towards producing for the domestic market. Clearly, with the current government support, There is no better time to start a manufacturing company other than now.
Below we highlight the steps you will take so as to start your very own successful manufacturing company in Kenya.
Do Market Research And Determine Your Niche
Just like in any business, You need to know the ins and outs of the manufacturing industry you want to be in. The manufacturing industry is broad and you have to determine the niche you want to get into. And that will require you to answer these four questions, so as to determine how viable your idea to start a manufacturing company is.
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What problem am I solving?
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Why-how will you starting that particular business benefit you and increase your ROI.
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How– what technologies, Innovations and collaborations will you use to solve the problem.
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who will you recruit or work with to help you solve those problem.
Fully understanding the niche you want to invest in is so important, as its sets the flow for the entire business set up.
Company Registration and Compliance
The process of company registration in Kenya might sound daunting and stressful, But we will help you do that. Below we highlight the process of business registration in Kenya.
Requirements To Start A Manufacturing Company In Kenya Include
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3 preferred names of the proposed company,
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Notarized copy of the parent company certificate of incorporation(if the parent company will be a shareholder of the subsidiary),
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Passport sized photographs of all the directors and shareholders,
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Postal, physical and e-mail address, Telephone number and occupation of all the shareholders/directors of the proposed company,
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Share appointment percentage.
In addition to the registration, you will need Kenya Bureau Of Standards approval as well as additional approvals from the relevant government bodies. Depending on what you will be manufacturing. Some industries require additional approvals from relevant government bodies for example food, dairy and pharmaceuticals.
You are also required to get business licenses from the county government where your Manufacturing plant / Warehouse will be located. This will be dependent on the space your business occupies, the industry you are in and also the number of employees your company will have.
Once the company is registered, you can go ahead and reserve the domain name, design logo, business cards and other marketing materials you need to standout from your competitors.
Come Up With A Business Plan
Just like in any other industry, A business plan is necessary when you want to start a Manufacturing company. A business plan will provide you with clarity when it comes to making decisions regarding key aspects of your business. It will also create a marketing roadmap for your business going forward, help you when you are looking to get funded as well as provide your business with structure.
Fund your Manufacturing Company
By now you should have figured out how much money you need to set up your business. The business plan, as well as the extensive research you did before settling down on the niche you are interested in, will help you with that. Getting money to start your manufacturing company is dependent on your market, the product and the scale you want to start with.
Luckily there a number of ways you can get funding; savings, Family or friends, loan from a bank or even crowdfunding.
secure the funds you need and you will be on your way to start a manufacturing business.
Start Making the Products
This is where you start your operations. Every industry is different and depending on your industry we will have some pointers for you when getting into the manufacturing waters. So, even if this is your first rodeo you shouldn’t worry. we will link you up with agents and distributors in your industry and this will help you a great deal in easing the process.
Market Your Manufacturing Company
To get your business out there you should market your brand. And thanks to the world being online you can do that very easily.
Create a website
A website will give the impression that your manufacturing company is big even if it is not. It adds some professionalism to your business. It will generate a buzz about your operations and tell the world about your business.
Social Media
We can guarantee you with 100% surety that 80% of your clients will be on social media. There are different social media platforms today and each carries a different type of audience, content and engagement, and depending to the product you will be manufacturing you will need to curate your content to fit the audience you will be speaking to.
Does this sound like too much work? Worry not we will be right here to help you with all that.
Talk To People In Your Industry
The best way to learn more about how to start a manufacturing company in Kenya, is learning it from people who are experienced. Create and foster relationships with people in your industry especially since its a very niche-y type of venture, and you are fairly novice at it. There is definitely someone who knows someone who would be a potential customer. And you need these types of connections when starting out so as to grow your new business.
Summary
The process to start a manufacturing company in Kenya might sound somewhat complex, but with these steps and more guidance from our team of experts, you are assured of having a successful business in your hands.
For more information or incase of any queries, Reach out to us, we will be more than willing to help you.
