How Profitable Is a maize milling Business in Kenya

Is a maize milling a profitable business idea? In this post, I will give you the ultimate guide on starting and running a successful corn milling business in Kenya. You will learn about how to write and execute a posho mill business plan on areas such as costs, equipment or machinery selection, location choice and risks among others.

A maize milling business is one of the most profitable food business ideas in Africa. Its a good investment for food processing or value addition. You will grind dry cereals like maize/corn, sorghum, millet, cassava, wheat etc. to flour.

Read Next; Profitable is cereals business in Kenya?

The above facts show maize milling remain an attractive business idea. With the raising cost of unga most people are shifting to milling second grade or unsifted maize meal. Besides it being cheaper than processed or sifted maize meal. Besides, its considered more nutritious or healthy.

How to start a posho mill business in Kenya

Considering you have capital to start a posho mill business, the following are five recommended steps to establish your milling business.

Rapid market Analysis

Do a small market research to establish the current market status about maize milling in your chosen area. This will help you to establish the market share in terms of volumes, competitors pricess etc. It will also help you explore the local and international posho mill suppliers serving the area. Other factors such as laws, food standards and regulations controlling maize milling are considered at this stage. Access to water, electricity, roads as well as availability of workers are answered at this stage.

Write a posho mill Business plan

Assuming that the above market research showcases there is an opportunity, the second step is drafting an execution plan in form of a business plan. Beyond many other aspects of your business, the following areas must be covered;

Execute your posho mill business idea

Once your business plan is solid, the next step is to execute it. This will involve following steps to start operations

Business Site selection;

consider the location and building where you will install your business. In kenya, small scale profitable posho mills thrive in low income and middle-income areas where majority of people rely on maize as theie main subsistence food. As such many are located in densely populated areas to supply maize flour to shops and supermarkets. Some of the large scale milling companies are located in high maize production areas such as Nakuru Kitale & Eldoret to ensure consistent supply of maize as the raw material and reduce transport costs.

Secure Business licenses permits and certificates;

A posho mill is categorized as a food business. You will there fore need to secure a health inspection certificate to certify there is hygienic food handling in the premises.

As a large scale milling business, you will need a Kenya Bureau of standards (KEBS) certificate to ensure your compliance with various food standards such as moisture content, aflatoxin free, and right vitamin and mineral fortification

Before you can start trading, you will need other national and county business licenses such as the single business permit for a small posho mill or a certificate of incorporation if you are registering a company for your operations.

Contact your suppliers

Are you going to secure milling maize direct from farmers, the government NCPB stores or rely on maize importers? Based on your findings in the market research above, settle for a sustainable supplier of grains as well as other supplies such as bags and packages. This will ensure there is minimal interruptions on supplies once you launch your business.

Procure and install your milling machine.

The next step is to order and install your milling machine, the section below gives you a guide on selecting the best milling machine for you. Besides, it has a list of the best suppliers in Kenya.

Hire employees

To commence operations, hire both the skilled and unskilled employees to operate your business. They include drivers, loaders, packers, managers, clerks etc.

Launch your Maize meal product

Its now systems go for you to start business operations. Start milling, marketing and distributing your meal among your target market. Sales and marketing will depend on your business model as explained below. But something to note is use of digital marketing to reach out to more customers online.

What is the most ideal business model for a maize milling business?

Grain milling ideally involves crushing and separation techniques to process maize (or other cereals) into primary products such as maize meal, grits, germ and starch. In Kenya you can run two types or forms milling businesses in Kenya; Milling business or milling as a services

Which is the best Posho mill in Kenya ?

There many brands and sizes of maize milling machines available in Kenya. They include the muthokoi hullers ot polishers, Roller mills, grade II posho mills or combined mill to polish grains and make sifted one maize meal.

Types of Posho mills in Kenya

For the purpose of this article, we have categorized milling machines into small scale, medium and large scale machines.

  • Economy/small scale posho mills ; Their average prices are Ksh 85,000 to Ksh 200,000. Ideal for milling non-sifted maize flour. Suitable for you of stating a small business start up in a domestic start up. They mill upto 6 bags of 90kg of maize per hour. Examples are GM02, GM05, GM10 and GM15
  • Medium posho mills; Average price is Ksh 140,000. They produce 6-15 bags of 90 kg maize per hour. Suitable for high grade maize meal. Examples are GM 20 and GM 25.
  • Large scale posho mill They cost from Ksh 400,000 and above. Ideal for stating a flour milling plant. At maximum output, they can produce more than 15 bags per hour of 90 kg maize.

How to select a good posho mill

There are many factors to consider while shopping for your corn milling machine. These include;

Your Business needs; Buy a posho mill that can mill the amount of flour you want to produce daily or monthly while operating at maximum capacity. The table below gives you various milling machine capacity per hour and the ideal market to serve

Efficiency; Your milling machine should be economical to operate, thus buy a miller that consume less energy and gives a high flour yield. The ideal machine should run on electric motors or diesel engine or both with capability of switching between both.

Quality of machine; Your posho mill should be durable, long lasting and can operate constantly for long. Request for an equipment testing video for your check from the manufacturer

Supplier Reputation; Your choice of manufacturer should be informed by their ability to supply the machine as well as after sales services including; installation, repair and training services for your workers. Most importantly, your supplier should be an informed business and offer you consultation or business advisory services in case you wish to expand.

Posho MillPowered byMilling capacityTarget Market
GM 107.5 hp Single phase electric motor2 bags per hourInstitution
Gm 1510 HP 3-phase TEFC electric motor or 10 HP Water-cooled, Diesel engine.3 – 4 bags per hourinstitutions and beginners in small market centers.
GM 20 12 HP water-cooled one piston diesel engines or  15HP 3-phase TEFC electric motor 5-6 bags per hourIdeal for a common market centers.
GM 25 16 HP water-cooled one piston diesel engines or  20HP 3-phase TEFC electric motor6 – 8 bags per hourSuitable for a quite busy market centers.
GM 3020 HP water-cooled one piston diesel engines or  25 HP 3-phase TEFC electric motor  8 – 10 bags per hour Suitable for towns or very busy market centres.
GM 3524 HP water-cooled one piston diesel engine or 30 HP 3-phase TEFC electric moto10 – 12 bagsvery busy market places 
GM 4035 HP water-cooled one piston diesel engines or 40 HP 3-phase TEFC electric motors. excess of 15 bags per hour.really busy locations.

Price of posho mills in kenya

The table below gives you a list of various milling machines and their prices. The tables shows the prices ranges between Ksh 70,000- 400,000. for a more accurate quote contact one of the following posho mills manufacturing companies listed below.

POSHO MILLPOWERED BYPRICE (Ksh)
Grade 2 Electric Posho Mill – GM227.5hp Electric MotorKsh 70,000
Grade 2 Electric Posho Mill – GM2510hp Electric MotorKsh 90,000
Imported Grade 2 Electric Posho Mill -GM22 {Made in India}7.5hp Electric MotorKsh 78,000
Imported Grade 2 Electric Posho Mill -GM25 {Made in India}10hp Electric MotorKsh 125,000
Imported Grade 2 Diesel Posho Mill -GM25 {Made in India}10hp Indian Diesel EngineKsh 150,000
Grade 2 Diesel Posho Mill -GM227.5hp Diesel EngineKsh 75,000
Grade 2 Diesel Posho Mill -GM257.5hp Diesel EngineKsh 85,000
Grade 2 Diesel Posho Mill -GM2510hp Indian Diesel EngineKsh 140,000
Grade 1 Electric Posho Mill – GM22 Combined (Makes Grade 1 & 2)7.5hp Electric MotorKsh 140,000
Grade 1 Diesel Posho Mill – GM22 Combined (Makes Grade 1 & 2)7.5hp Diesel EngineKsh 145,000
Grade 1 Electric Posho Mill – GM25 Combined (Makes Grade 1 & 2)7.5hp Electric MotorKsh 160,000
Grade 1 Diesel Posho Mill – GM25 Combined (Makes Grade 1 & 2)7.5hp Diesel EngineKsh 165,000

Where can you buy a posho mill in Kenya

you can buy milling machines online from companies such as Jumia and Jiji. Other local companies include the

  • Posho Mills manufacturers
  • Muharata Agri Machinery
  • Simba Machinery
  • Nyagah Mechanical Engineering Limited

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