How to Start a Water Vending Machine Business in Kenya
Water is essential for life, but not all water is safe to drink. Many people in Kenya face the risk of waterborne diseases and contamination from polluted sources of water. That is why there is a growing demand for clean and pure drinking water in the country. In this post, we will discuss important points how to start a water vending machine business in Kenya.
One of the innovative ways to meet this demand is by starting a water vending machine business, also known as a water ATM business. A water vending machine is a device that allows customers to buy purified water using coins, notes, or mobile money. The machine is connected to a filtration system that removes impurities and bacteria from the water and keeps it chilled and fresh.
A water vending machine business is a lucrative and low-risk venture that can generate a steady income for you. It can also have a positive impact on the environment, as it reduces the use of plastic bottles and the waste they create. Moreover, it can provide a valuable service to the community, especially in areas where access to clean water is limited or expensive.
How to start a water vending machine business in Kenya
If you are interested in starting a water vending machine business in Kenya, here are some steps that you need to follow:
- Do Your Market Research
The first step is to do your market research and find out the potential and the competition of your business. You need to answer questions such as:
- What is the demand for purified water in your area?
- Who are your target customers and what are their preferences and needs?
- How much are they willing to pay for a liter of purified water?
- Where are the best locations to place your water vending machines?
- Who are your competitors and what are their strengths and weaknesses?
- What are the legal and regulatory requirements for your business?
You can conduct your market research by visiting different locations, observing customer behavior, surveying potential customers, analyzing existing data, and consulting experts and stakeholders. You should also test your product and get feedback from your customers before launching your business.
- Choose Your Business Model
The next step is to choose your business model and decide how you will operate your business. You have two main options:
- Buy a franchise from an established company that provides water vending machines and services. This option is easier and faster, as you will get a ready-made system, training, and support from the franchisor. However, you will also have to pay a franchise fee, royalties, and follow the franchisor’s rules and standards.
- Start your own independent business and buy or lease your own water vending machines and equipment. This option is more flexible and creative, as you will have more control over your business decisions and operations. However, you will also have to bear more risks, costs, and responsibilities.
You should weigh the pros and cons of each option and choose the one that suits your goals, budget, and skills.
- Buy or Lease Your Water Vending Machines and Equipment
The third step is to buy or lease your water vending machines and equipment. You need to consider several factors, such as:
- The quality and capacity of the machines and equipment. You want to choose water refilling station machines and equipment that are durable, reliable, and efficient. You also want to choose machines and equipment that can meet the demand and expectations of your customers.
- The price and maintenance of the machines and equipment. You want to choose machines and equipment that are affordable and cost-effective. You also want to choose machines and equipment that are easy to maintain and repair.
- The features and options of the machines and equipment. You want to choose machines and equipment that have features and options that enhance your business and customer experience. For example, you might want to choose machines that have digital displays, coin and note acceptors, mobile money integration, water quality indicators, etc.
You can either buy new or used machines and equipment, depending on your preference and availability. You can also choose between local or imported machines and equipment, depending on your quality and cost expectations.
The price of a water vending machine can range from Ksh 150,000 to Ksh 500,000, depending on the size, brand, and condition of the machine. The capacity of a water vending machine can range from 200 liters to 1000 liters, depending on the model and configuration of the machine. You can start with a small machine and then upgrade to a bigger one as your business grows and your demand increases.
- Secure Your Water Supply and Quality
The fourth step is to secure your water supply and quality. You need to ensure that you have enough water to fill your machines every day and that the water is pure, safe, and compliant with the standards and regulations of the Kenya Bureau of Standards (KEBS) and the Kenya Dairy Board (KDB).
The best way to secure your water supply and quality is to link up with a reputable water company or supplier who can provide you with purified water from their sources or plants. You can either buy the water directly from them or through a contract or a partnership. You can also source the water from different places, depending on the availability and the season.
You should visit the water company or supplier and inspect the quality and the hygiene of the water before you buy it. You should also check if the water company or supplier has the necessary licenses and certificates from the KEBS and the KDB. You should also have a backup plan in case of any disruptions or shortages in your water supply.
- Obtain the Necessary Licenses and Permits
The fifth step is to obtain the necessary licenses and permits that allow you to operate your water vending machine business legally and safely. You need to comply with the rules and regulations of the KEBS, the KDB, the county government, and the public health authorities.
The KEBS is the national body that sets and enforces the standards and requirements of quality, safety, and hygiene for water and other products and services. You need to apply for a KEBS permit from the KEBS, which costs Ksh 5,000 per year, with a one-time application fee of Ksh 1,000. You also need to obtain a KEBS certificate from the KEBS, which costs Ksh 2,000 per year.
The KDB is the statutory body that regulates the dairy industry in Kenya. It issues licenses and certificates to milk and water producers, processors, and vendors, and ensures that they meet the standards and requirements of quality, safety, and hygiene. You need to apply for a water vending license from the KDB, which costs Ksh 2,500 per year, with a one-time application fee of Ksh 600. You also need to obtain a certificate of registration from the KDB, which costs Ksh 1,000 per year.
The county government is the local authority that oversees the business activities in your area. It issues single business permits to all businesses that operate within its jurisdiction, and collects taxes and fees from them. You need to apply for a single business permit from the county government, which costs between Ksh 5,000 and Ksh 20,000 per year, depending on the location and the size of your business.
The public health authorities are the agencies that monitor and enforce the health and safety standards of the public and the environment. They inspect and approve the premises, equipment, and products of your business, and issue health certificates and clearance letters to you. You need to apply for a health certificate from the public health authorities, which costs Ksh 1,000 per year. You also need to obtain a clearance letter from the public health authorities, which costs Ksh 500 per year.
You should apply for these licenses and permits before you start your business, as they are mandatory and non-negotiable. You should also renew them every year, as they are valid for only one year. You should also display them conspicuously at your business premises, as they are proof of your compliance and legitimacy.
How to start a water vending machine business in Kenya- Conclusion
A water vending machine business is a viable and profitable venture that you can start in Kenya with a modest capital and a simple plan. You just need to do your market research, choose your business model, buy or lease your water vending machines and equipment, secure your water supply and quality, and obtain the necessary licenses and permits. You can then enjoy the benefits of selling purified and affordable water to your customers and making money from your machines.
We hope you found this blog post on how to start a water vending machine business in Kenya useful and informative. Thank you for reading and good luck with your business.
