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How to Start a Cigarette Business in Kenya

ByTristram Ouma

Mar 27, 2023
How to start a Cigarette Business in Kenya

Last updated on March 2nd, 2024 at 05:40 pm

Starting a cigarette business in Kenya can be a profitable venture, but it requires proper planning, knowledge of the market, and compliance with legal regulations. In this guide, we will provide you with a step-by-step guide on how to start a cigarette business in Kenya.

Starting Cost Breakdown

ItemCost (KES)
Business Registration10,000
Trading License20,000
Premises Rent50,000
Initial Stock100,000
Display Shelves20,000
Cash Register and POS System30,000
Employee Salary (1)15,000
Miscellaneous Expenses (Utilities, etc.)15,000
Total Starting Cost260,000

Note: These costs are estimates and may vary based on location, size of the business, and other factors.

Also Checkout: How to Start a Brick Making Business in Kenya


The success of your cigarette business largely depends on the location you choose. A good location is one that is easily accessible and has a high foot traffic. Consider setting up your business in areas such as bus stops, markets, and busy streets.


To start a cigarette business in Kenya, you will need to register your business with the Registrar of Companies, obtain a trading license from the County Government, and comply with the legal regulations set by the Ministry of Health and other relevant authorities.

Market size

The tobacco industry in Kenya is growing, with a high demand for cigarettes in the country. According to a report by Euromonitor International, the value of the cigarette market in Kenya is expected to reach KES 143 billion by 2024. This presents a huge opportunity for anyone looking to start a cigarette business in Kenya.

Earnings per day

The amount you can earn per day from a cigarette business in Kenya depends on various factors such as location, pricing, and the number of customers you serve. On average, a small cigarette business can make between KES 2,000 and KES 5,000 per day, while a larger one can make up to KES 20,000 per day.

Pros and Cons


  • High demand for cigarettes in Kenya
  • Potentially high earnings
  • Low starting costs compared to other businesses


  • Health concerns associated with the sale of tobacco products
  • Government regulations and taxes
  • Competition from established cigarette companies

Conclusion: Starting a cigarette business in Kenya can be a profitable venture if you plan properly and comply with legal regulations. Consider the starting costs, location, market size, and potential earnings before starting your business. Remember to prioritize legal compliance and responsible business practices.