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How to Start a Cosmetics Business in Kenya

ByTristram Ouma

Mar 28, 2023
How to start a Cosmetic Business in Kenya

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

Starting a cosmetics business in Kenya can be a lucrative venture, given the high demand for beauty products. However, like any other business, starting a cosmetics business requires careful planning and execution. This guide aims to provide a step-by-step guide on how to start a cosmetics business in Kenya, including the starting cost breakdown, location, requirements, market size, earnings per day, and pros and cons.

Starting Cost Breakdown

ItemCost (in KSH)
Business registration10,000 – 20,000
Rental space for shop10,000 – 50,000
Initial inventory50,000 – 100,000
Licenses and permits5,000 – 15,000
Furniture and fittings20,000 – 50,000
Marketing and advertising10,000 – 30,000
Total105,000 – 265,000

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Location

The location of your cosmetics business is crucial. You want to choose a location that is easily accessible, has high foot traffic, and is in a safe neighborhood. The best locations for a cosmetics business are in busy shopping centers, malls, or markets.

Requirements

To start a cosmetics business in Kenya, you need to fulfill the following requirements:

  1. Business registration: You need to register your business with the Registrar of Companies, obtain a business permit from your local government, and register for taxes.
  2. Licenses and permits: You need to obtain a trading license from the county government, a health permit from the Ministry of Health, and a cosmetic manufacturing license from the Pharmacy and Poisons Board.
  3. Initial inventory: You need to purchase inventory such as makeup, skincare products, hair products, and fragrances.
  4. Furniture and fittings: You need to furnish your shop with shelves, display cases, mirrors, and other fittings.
  5. Marketing and advertising: You need to promote your business through various marketing channels such as social media, flyers, and posters.

Market size

The cosmetics market in Kenya is growing rapidly, driven by a young and fashion-conscious population. According to Euromonitor International, the cosmetics and personal care market in Kenya was worth KSH 50.3 billion in 2020 and is expected to grow at a CAGR of 5.3% from 2020 to 2025.

Earnings per day

The earnings per day for a cosmetics business in Kenya vary depending on several factors, including location, inventory, pricing strategy, and marketing efforts. On average, a cosmetics business in Kenya can earn between KSH 5,000 to KSH 20,000 per day.

Pros and Cons

Pros:

  1. High demand for cosmetics and personal care products in Kenya
  2. Potential for high profits
  3. Opportunity to showcase your creativity and passion for beauty
  4. Flexibility in terms of working hours and location

Cons:

  1. High competition from established brands and other startups
  2. Need for continuous innovation and staying up-to-date with the latest trends
  3. Capital-intensive business with high initial investment
  4. Challenging market conditions, including price sensitivity and counterfeit products

Conclusion

Starting a cosmetics business in Kenya can be a rewarding venture, but it requires careful planning and execution. By following this step-by-step guide, you can start your cosmetics business on the right foot and position yourself for success in the growing cosmetics market in Kenya.

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