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.
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Facts about maize flour consumption in Kenya
Is maize milling a worth your time, effort and investment? Consider the following market data about maize meal production and demand in Kenya.
- Maize is Kenya’s staple food with a per capita consumption of 98 kg per year
- Main maize dishes in Kenya are stiff porridge (ugali), boiled maize and beans (githeri) or soft porridge (uji)
- Per capita consumption for packaged maize meal in Kenya is 62 kg per person.
- The market for ready-packaged maize flour, produced by large-scale millers is valued at $444 million.
- More than one fifth of all maize consumed in the world is consumed in Sub-Saharan Africa.
- Kenya has a a monthly demand of 4.25 million bags, and an annual demand of 51 million bags of maize
- The median price for a two kg -packet of maize flour, was Sh150 in June,2022 compared to less than Sh120 a year ago.
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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.
Conduct a 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 prices 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;
How to write a maize milling business plan
Sections or parts to be included in your posho mill business plan.
Market description; An analysis on the current and future estimates of maize milling industry and market including Competitive analysis, customer dynamics, target market, SWOT analysis and the existing market potential
Product information; describe your value proposal or competitive advantage that sets your business different from your rivals. The section should also outline your business growth and expansion plans.
Marketing Plan; A description of your posho mill marketing strategy and objectives and its execution including pricing and sales strategy.
Operations Plan; A description of your milling business location, milling process, key suppliers, human resources, quality assurance, customer management etc.
management team; give an organogram describing roles and positions of your business management including advisors and consultants.
Financial planning; A budget of your cash/finance needs to purchase machinery, installation and operations including loans logistics. At this stage complete the income statements, balance sheets, statement of cash flows etc.
Risk Analysis; outline the key business and operational risks likely to impact your business and a mitigation plan to avoid business failure.
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 their 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
Maize milling business Models in Kenya
A list of 3 common methods of how you can make money in maize milling in African Countries such as Kenya, Uganda, Zambia etc.
- Milling Company/Business; You will purchase maize and other grains at harvest time when maize is in a very high supply and low prices. Thereafter, treat and store it well to use later it later. You will then mill the flour and fortify it with vitamins make it more nutritious, You will then transport the sifted flour to various customers across Kenyan towns. It is the best choice for large scale investments
- Maize flour blends Selling business; Alternatively, you can forego the flour packaging and distribution costs. You will mill unga in bulk and sell it as scoops or small amounts that your consumers can afford. To make more money, consider venturing into the nutritious maize flour blends or the uji-mix flour as its popularly known. Your products include mixed porridge flours of finger millet, amaranth, sorghum etc.
- Milling Business as a service; Its the most ideal for small scale investment. In this business model, you will earn profits by offering milling as a service. Individual and institutional consumers such as schools will bring in their grains for milling. You will make money by charging a given amount e.g ksh 10 per kg.
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 or 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 Mill | Powered by | Milling capacity | Target Market |
| GM 10 | 7.5 hp Single phase electric motor | 2 bags per hour | Institution |
| Gm 15 | 10 HP 3-phase TEFC electric motor or 10 HP Water-cooled, Diesel engine. | 3 – 4 bags per hour | institutions 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 hour | Ideal for a common market centers. |
| GM 25 | 16 HP water-cooled one piston diesel engines or 20HP 3-phase TEFC electric motor | 6 – 8 bags per hour | Suitable for a quite busy market centers. |
| GM 30 | 20 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 35 | 24 HP water-cooled one piston diesel engine or 30 HP 3-phase TEFC electric moto | 10 – 12 bags | very busy market places |
| GM 40 | 35 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 MILL | POWERED BY | PRICE (Ksh) |
| Grade 2 Electric Posho Mill – GM22 | 7.5hp Electric Motor | Ksh 70,000 |
| Grade 2 Electric Posho Mill – GM25 | 10hp Electric Motor | Ksh 90,000 |
| Imported Grade 2 Electric Posho Mill -GM22 {Made in India} | 7.5hp Electric Motor | Ksh 78,000 |
| Imported Grade 2 Electric Posho Mill -GM25 {Made in India} | 10hp Electric Motor | Ksh 125,000 |
| Imported Grade 2 Diesel Posho Mill -GM25 {Made in India} | 10hp Indian Diesel Engine | Ksh 150,000 |
| Grade 2 Diesel Posho Mill -GM22 | 7.5hp Diesel Engine | Ksh 75,000 |
| Grade 2 Diesel Posho Mill -GM25 | 7.5hp Diesel Engine | Ksh 85,000 |
| Grade 2 Diesel Posho Mill -GM25 | 10hp Indian Diesel Engine | Ksh 140,000 |
| Grade 1 Electric Posho Mill – GM22 Combined (Makes Grade 1 & 2) | 7.5hp Electric Motor | Ksh 140,000 |
| Grade 1 Diesel Posho Mill – GM22 Combined (Makes Grade 1 & 2) | 7.5hp Diesel Engine | Ksh 145,000 |
| Grade 1 Electric Posho Mill – GM25 Combined (Makes Grade 1 & 2) | 7.5hp Electric Motor | Ksh 160,000 |
| Grade 1 Diesel Posho Mill – GM25 Combined (Makes Grade 1 & 2) | 7.5hp Diesel Engine | Ksh 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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