How to start a posho Milling business in Kenya

How to start a posho Milling business in Kenya

The cost of living in Kenya has shot up in the last decade and continues to be on the rise. This has seen food prices go up everywhere and people are desperately looking for means to sustain themselves. Any means of relief is highly appreciated by Kenyans.

It is no secret that Kenya’s staple food, kales and maize, have also shot up in price. Maize flour prices in the shops are becoming unaffordable as new prices are announced every now and then. There are many factors that contribute to the rise of maize flour which include changes in the transportation sector and regional climate.

Amid all this chaos arise an opportunity that you can capitalize on. Recent research has shown that demand for unsifted maize flour is high since packed maize flour is proving to be expensive on a commoner’s pockets. You can seize the opportunity and start a posho mill in your local area. Posho milling business can be lucrative if strategically placed. In this article, you will learn on how to set up a successful posho milling business at the lowest cost possible.

Where to start

Machinery

Every start-up needs to minimize on its spending for the business to grow. When setting up a posho mill, you have to minimize your spending on the machinery.

Types of posho mills and their prices

You are probably searching for a store with the best posho mill prices in Kenya for your next or first purchase. However, before making this move, you need to know the suitable maize milling machine for your venture.

Posho mills are categorized into three distinct groups: economy, medium and large. Of course, the categorization is according to their output capacities. Also, these groups have subgroups based on the quality of output you are looking for.

For instance, if you are interested in producing grade 1 sifted maize flour, you will need a particular machine out of the three categories based on your desired output. Get the idea? So, how much does a poshomill cost and which one should you settle on?

1. Economy/small scale posho mill (GM02, GM05, GM10 and GM15)

Economy posho mill machine prices in Kenya are the lowest considering the equipment is the smallest. These small posho mills can grind a maximum of three to four (90kg) bags in an hour. The capacity is perfect for a domestic set-up or a business with low traffic.

These economy-size posho mills are ideal where people prefer the meal flour in its original non-sifted form. If you are looking to produce maize flour in a small scale set-up, this is the perfect maize milling machine. The average price for the economy size in Kenya is between Ksh.85,000 and Ksh.200,000, depending on the brand and store that sells the equipment.

2. Medium posho mill (GM20 and GM25)

A medium-sized one is the best for business, primarily start-ups. These sophisticated machines can produce six to eight bags per hour. Also, they are designed for continuous operation, so you do not have to worry about fast wear and tear.

Of course, the cost varies, but you can get your hand on one from Ksh.140,000 onwards. However, if you are looking to produce better quality flour, you’ll have to look into the grade 1 posho mill price in Kenya for this capacity.

The best thing is that you can even get the medium posho mill in a combined format. So, for instance, you can get a regular posho mill and a muthokoi huller/polisher in one set-up.

3. Large scale posho mill (GM30 and GM35)

A large scale machine is ideal if you want to start a posho mill business in Kenya or a large-scale flour milling plant. It can produce more than 15 bags per hour at maximum output. How much does a large scale poshomill cost? The price starts at around Ksh.400,000 and can be higher.

If the area or spot you plan to set-up your business lacks electricity then it is advisable to buy a diesel powered miller. Electric ones can be used in areas that have electricity. You should survey the area you plan to set up the mill before purchasing a miller. You don’t want to end up with an electrically powered miller in an area that lacks electricity.

Installation

It is not advisable trying to install the posho millers by yourself.  Let professionals handle this for you. In most cases, the installation is done by the people whom you buy from but in case you find yourself lacking this service, seek help from those who have been in this business before, probably a qualified technician. You might install the miller wrongly which might result in injuries, breakdowns or reduce the space of your premises unnecessarily.

Space

The first step will be identifying a suitable space in the area you intend to set up the posho mill. Make sure the place is well situated near a road for exposure to passersby. Do not go for places where the mill is not visible. If you find a spot that is not next to a road then make sure you put signposts next to a road to direct people to your posho mill.

Space can turn out to be expensive depending on the number of millers and their size you intend to have at the mill. Make sure you look for a place that is strategically placed and affordable. Consider yourself lucky if you nail yourself some space at a junction with busy traffic.

Where posho mills can work greatly

Suburbs — you are likely to run a successful posho mill in the suburbs. Such areas are highly populated and many families living in these areas try to minimize their food expenditure as much as they can. Regulate your price to gain more customers.

Industrial areas — you can set up a profitable posho mill business in an industrial area too. The only disadvantage of setting in such an area is that you will have to source for clients from outside before your business picks. But once people get to know of your posho mill, business will boom.

Up-country — very few people living up-country buy sifted maize flour from shops. Most consume un-sifted maize flour and this makes up-country the best place to set-up a posho mill. The scarcity of posho mills in these areas also makes the market favorable. Expect good business during the time of harvest.

Once the mill is up and running, it is time to add a few things to boost your income. Some of the things you can consider adding in include cereals that you can sell in the front area of your mill. You can as well bring maize to sell to your customers which will see you earn a good profit on every sack of maize sold.

One of the best things about this business is that very little goes to waste. You can still find a market for the left-over from the mill. You can sell the leftovers to animal farmers who can pay a good price for it.

How does a posho mill work?

The working principle of a posho mill is easy. The machine has different parts that work together to produce the final product – flour. The milling/grinding system is the most important as it crushes the maize to flour. The section utilizes high-speed rotation.

After the maize is processed, it will come out from the exit section as flour, ready for packaging. The entire process happens after you feed your maize into the feeder.

Is a posho mill business profitable?

A posho mill is a profitable venture if you play your cards right. Remember, people that cannot afford costly packed maize meals prefer the posho mil because it is more affordable and nutritious.

Also, it would help if you considered setting up your machinery in areas where it can bring you business. For instance, you are likely to make more money in the suburbs, industrial sites, or upcountry.

Maize is Kenya’s staple. That is why a posho mill business in Kenya will always be a fruitful venture. If you buy the right equipment and set it up in the ideal location, you will earn impressive returns.

Dealing with competition

If there are is more than one posho mill in your area then create a strategy on how to outsmart your competitors. Delivering good service and charging affordable rates is one way of doing it. The other way is introducing a variety of things. It would be a great idea to have cereals for sale at your mill too.

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