Search for:
Milk Vending Machines; The Silent Employment Driver To Many Neighborhoods In Kenya

Milk vending machines have become keys drivers of employment in Kenya with many neighborhoods around the country are teeming with such businesses. The dairy value chain has received a major boost with the advent of the milk dispensing enterprise. It goes without saying that milk is a delicacy in Africa ,with almost every household incorporating it in their meals in one form or the other.

Milk traders will always get market for their commodity as long as there is a human population in place. Any aspiring entrepreneur can roll out this business and get value for their money. Statistics from the Kenya Dairy Board rightly affirm that these milk atm machines have boosted milk sales all over Kenya especially in the cosmopolitan urban centres of the country where the spending power of the consumer base is higher as compared to the rural areas. The high prices of packaged milk in supermarkets and shops across the country have hit the 50 shilling mark while most milk vendors are able to sale a half a litre of pasteurized unpackaged milk at a cost of kshs 30. This represents an almost 50% saving resulting in most consumers preferring to buy their milk form milk ATM owners.

The Anytime Milk Machine (ATM) essentially allows a consumer to buy milk for any amount of money they have eliminating the need for packaging and knocks off middlemen from the daily value . This has the end result of making the product more affordable especially for the low income part of the populace.

Busy shopping areas with retail shops are recommended to allow customers to easily include milk in their shopping list as they shop for other supplies. A commercial agreement with supermarket owners to station these devices in their supermarkets can bring in good sales results, some of which can be shared with supermarket owners in a mutually agreed format.

Standalone outfits that are well lit and well ventilated with stable water and electric power supplies can assert independence in the business if the infrastructure sharing plan with big retail outlets such as supermarkets is not workable.

The milk dispenser, commonly called milk ATM is the main machine required for this business. They come in varying sizes and designs– portable and wall – such as 150, 200, 300, 400, 500, 600, 200 and even 1,000 litres. They are refrigerated to preserve milk and can dispense any denomination of milk in 100ml units.

The statutory body mandated with regulating this business is the, Kenya Dairy Board (KDB) and the relevant county government licensing departments. Identify a dependable supplier of good quality milk such as dairy farmers and farmer cooperatives which supply pasteurized milk at a good price. Practice high standards of hygiene to maintain freshness. With pasteurized milk costing some kshs 50 to 55 to you can dispense milk at Ksh60 – Ksh70 per litre. Good customer service is critical and follow strict maintenance schedules to ensure long life for your valuable machine. Keep a good supply of coins to exchange with notes for those who come with bigger denominations an assistant to operate the dispenser or to exchange bigger denomination with coins.

Milk ATM Business: The Silent Cash Cow In Kenya

Milk ATM Business In Kenya; a new cash-cow in town and it is known as the milk dispenser or milk ATM. It works like a traditional bank ATM with the only difference being that it swallows coins and gives out milk (simply put). Well this is not exactly a new idea here in Kenya because several supermarkets are already offering it but according to our research by Tassmatt, a Milk ATM Manufacturer and Supplier in Kenya, there is still a lot of potential in this emerging opportunity waiting to be fully realized.

With so many upcoming estates in our urban centres and with abundance of raw milk from our hardworking farmers, there is absolutely no reason why you should not be milking some profits from this opportunity. Here’s how you can get started.

Step One: Find A Good Location

The secret to success in this business lies in achieving a large volume of sales per day. You therefore should locate your business in an area that is adequately populated. The more walk-in customers your milk ATM can attract, the better. But what if finding such a location proves difficult? Well, worry not.

You can approach your nearest supermarket or mini-market and negotiate a revenue sharing agreement. Like there is one guy from Rongai who has partnered with Tuskys. They will give you the space and you will give them the machine and milk to dispense. Smart…isn’t it?

Step Two: Choose A Good Milk ATM Machine in Kenya

Choose a machine that does not strain your budget and one that has enough capacity to sustain your customers’ demand. You can start small with a 200 litre machine and then graduate to a bigger 1000 litre machine as demand rises.

As for purchasing the machine you can buy one locally from Tassmatt Limited . Locally manufactured machines are cheaper…and as you know, it’s a good idea to BUY KENYA, BUILD KENYA. Here are some tip that will come in handy in your search for a good milk ATM machine.

Step Three: Arrange With Farmers and Suppliers For Milk

Yes your business will be located in the urban centres but in order to get quality and consistent milk supplies you will need to link up with farmers or suppliers. As part of your planning, take time to visit the surrounding rural areas and compare cost before settling on the most feasible source.

Don’t take chances. Have your suppliers sign a contract with you…that way you will be sure they’ll not sell your milk to anyone else and leave your supplies hanging.

  • Look for high quality milk that is not adulterated with water
  • The Kenya Dairy Board requires only pasteurised milk to be sold. Try to find farmers who can supply pasteurised milk…not raw milk.
  • If you can’t find pasteurized milk, don’t worry. You can invest in a pasteurizer and be purchasing cheap raw milk. Smart idea!
  • A litre of raw milk will cost you 35/- at the farms while a litre of pasteurized milk will cost you 50/-.

Step Four: Get Licensed

You will need a license from the Kenya Daily Board which will cost you Ksh2,500 with a one-time application fee of Ksh600. This is of course in addition to the county single business permit which may vary from Ksh5,000 in remote counties to as high as Ksh20,000 in urban counties like Nairobi and Mombasa.

Tassmatt Agency helps in obtaining of all the mentioned licenses and permits upon purchase of Milk ATM Machine

HINT: Areas that fall in Machakos, Kiambu or Kajiado counties tend to have cheaper single-business permit charges than ones in the core Nairobi despite their proximity to the city (Examples: Ongata Rongai (Kajiado), Syokimau (Machakos), Githurai 45 (Kiambu), Kahawa Sukari(Kiambu), Kahawa Wendani (Kiambu), Ruaka (Kiambu), Mlolongo (Machakos), Kitengela (Kajiado)).

From Banking To Milk ATM Business In Kenya – 0726410068

Two years ago, Julius Kambi was concerned that many residents of Bombolulu in Mombasa County could not afford packed milk and oil from shops. The Sh60 needed for a packet of milk was beyond the means of many households.

This got him thinking how he could package the items in smaller portions so that the residents could afford them. He identified the solution lay in automated milk ATM machines in Kenya.

In January last year, he resigned from his banking job after working for four years at one of the leading financial institutions in the country to actualise his dream.

“I was uncomfortable in my job having identified a business opportunity that I knew could earn me more money and at the same time be a relief to my neighbourhood,” says Mr Kambi.

He bought two automated dispensing machines — one for milk and the other for cooking oil — from Tassmatt, a firm based in Industrial Area, Nairobi.

He used his savings of Sh450,000 and a bank loan of Sh320,000 to buy the machines and to set up the business.

“I was taken through training on how to use the machines and maintain them before I began operations,” he says.

Before setting up the venture, he had to go through a laborious licensing process. Aside from obtaining business licences from local authorities, a milk enterprise needs clearance from the county public health department and the Kenya Dairy Board. Also, inspectors from the Kenya Dairy Board assess the hygienic conditions of the machine and recommend the kind of milk to be sold to the public.

With the business set up, Bombululu residents could now buy milk for as little as Sh5.

“These machines have offered relief to residents who now buy milk for as little as Sh5,” the entrepreneur says.

Bulk milk

Mr Kambi receives his milk daily from the Kenya Co-operative Creameries.

An advantage with the bulk milk from the creameries is that it is already pasteurised and has no preservatives. He says quality is key in his business.

“The Kenya Dairy Board agents make impromptu visits to inspect the quality of the milk and to make recommendations,” he notes.

He purchases one litre of milk at Sh65 and sells for Sh90, making a profit of at least Sh5,000 from the venture every day. “In a day, we can sell up to 200 litres. Our day starts from 6am till 6pm in the evening when we receive another bulk of milk,” he says.

He has hired two assistants whom he has trained on how to handle the machines to help him run the business.

Mr Kambi earns about Sh210,000 from the business every month. His expenses, which include machine maintenance, electricity costs and wages for the workers, consume about Sh38,000 monthly. The business is looking to expand by opening milk shops in Mtwapa and Likoni.

Some of the challenges he faces include unexpected breakdown of the machines if they are not well serviced and milk shortage that sometimes hits the market.

“Sometimes there is a shortage of milk supply in the market following drastic weather conditions and other market factors. This tends to be a challenge in terms of pricing,” says Mr Kambi.