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Operational costs and returns in running Milk ATM enterprise in Kenya

Its no secret that more than half of the operational cost in Milk ATM enterprise is for servicing, which reflects efforts by entrepreneurs to implement scheduled servicing as instructed by the manufacturers. But the high cost of servicing present concern in the running of Milk ATM enterprise because entrepreneurs are likely to skip some servicing schedules in order to reduce operational costs. This would be a failure in complying with the regulations requiring that Milk ATM retails only pasteurized milk.

In this study by Julius Mwaura, director at Tassmatt Agencies Ltd – One of the leading suppliers of Milk ATMs in Kenya with a 5star rating – the operator declared that one sample out of thirty nine samples was raw milk, suggesting that not all milk from Milk ATM are pasteurized. Retailing unpasteurized milk in the ATM pose the risk of compromising the quality and safety of traded milk. This should inform the authorities controlling food safety to direct effective quality inspections towards checking trade malpractices in milk ATM retailing businesses. One of the major reason was misinformation from where they had bought the Milk ATM machines and most reported to have purchased from resellers placing adverts all over the internet.

Though most Milk ATMs in Kenya are imported, emerging local assembling is evident, which would grow with increased uptake of the ATM for milk retailing. It would be beneficial to the efforts of formalizing milk market in Kenya to support local innovation in fabricating and assembling milk ATM in Kenya because it would make the machines affordable and create jobs in the dairy value chain.

Consumers are attracted to milk from ATM because milk is retailed at a price half lower (KES 60 to 70) than the retail price of 1 litre of pasteurised, packaged milk (KES 120). This means that consumers save KES 50 to 60 per litre of milk. The saving is an economic incentive in markets where consumers prioritize price and consistent availability over milk safety as they may be unwilling or unable to pay a premium price for packaged milk. The retail margins per litre of milk of up to KES 10 are a business attraction to SMEs, depending on the volume of milk traded. They can cash on this market opportunity in responding to the growing domestic consumption demand for processed milk and dairy products evident in the economic surveys.

The milk sale volumes between 2013 and 2018 increased by 21.3 % in processor milk intake, by 11.7 % in processed milk and cream, by 46.1 % in cheese and by 1.5 % in butter and ghee. These growth trends in manufacturing high value milk and dairy products present an increasing demand by processors for supply of high quality and safe milk. Some of the high value milk and dairy products are the pasteurised ready to drink milk retailed in ATM, targeting urban consumers.

But running milk ATM enterprise require secured access to stable supply of clean water and electricity to observe the hygiene practices and to avoid compromising quality and safety of milk to consumers. If the growing consumption demand trends continue, pasteurised milk from ATM would be a growing segment of the milk retail market. The government can support growth of ATM in milk retailing with evidence base to inform targeted response to this likely growth scenario by understanding better the likely growth trends, consumer demands and policy responses that may support or discourage further growth of milk ATM in the country.

For detailed information on Milk ATM enterprise in your area contact Tassmatt via 0726-410068 and they will be helpful. They are certified sellers of milk ATMs in Kenya together with milk pasteurizers and milk coolers in Kenya.

Requirements For Starting a Milk Bar ATM Business in Kenya

This article outlines some of the key requirements that an investor on Milk ATM business in Kenya, Milk Bar or Parlor should have for a smooth operation. A Milk ATM baris a retail outlet that sells milk and other dairy products to consumers. Milk bars generally handle between 50 to 200 litres of milk per day. The milk bar ATM machines have in-built coolers and use electricity to store and dispense milk.

Kenya has a well-developed dairy industry with an estimated production of 5.2 billion litres of milk per year. Actually, the dairy industry in Kenya contributes approximately 14% and 4.5% of the country’s agricultural and National Gross Domestic Products (GDP) respectively.

The licensing of milk bars is done by the Kenya Dairy Board (KDB). As of last year, there were more than 1,400 licensed milk bars in the country. Most of these milk bars are located in urban and peri-urban areas.

The procedure of  Starting a Milk ATM Bar in Kenya 

1. Identify a suitable premise to set up the milk bar.  The premise should meet the following hygienic and operational requirements.


  • The premise should be located away from sources of contamination.
  • The floors, walls and ceilings should be impervious, easy to clean and sanitize.
  • The premise should have adequate and protected lighting and ventilation.
  • The premise should have adequate hand washing and sanitization facilities.
  • Adequate and clean toilet and sanitary facilities should be provided.
  • The premise should be designed to prevent cross-contamination of milk.


  • Surfaces of milk containers intended to come into contact with milk should be easy to clean and disinfect, corrosion-resistant and not capable of transferring harmful substances to the milk.
  • The layout of the equipment should allow for adequate cleaning and prevent cross-contamination.

Cleaning and sanitization programs.

  • The cleaning and disinfecting agents should be effective, safe and easily rinsed.
  • Immediate cleaning and disinfection of the equipment and containers after use.


  • Milk handlers should be free of contagious or infectious diseases which may be transferred through the milk or affect the quality and safety of the milk.
  • Milk handling personnel should observe personal hygiene, wear suitable protective attire and avoid undesirable behaviour during milk handling.


  • Provide adequate and clean potable water for cleaning of equipment, facilities, utensils and containers.

Waste Management

  • Liquid and solid waste should be disposed of in accordance with the relevant regulations.
  • Ensure solid and liquid waste does not harbour flies, insects and other rodents.


  • Premises should be managed by a qualified supervisor or manager.


  •  Recommended processing schedules should be followed e.g. pasteurization temperatures and time controls.

2. Contact the nearest Kenya Dairy Board office for a preliminary inspection of premises (Where areas of non-compliance are identified, improvements should be undertaken)

3.  Apply online for licensing.

The application fees for a milk bar license is Ksh 600. The online application is done at the Kenya Dairy Board Portal.

The following documents will be required.

  • A copy of your business registration certificate
  • PIN certificate
  • Identity card
  • Proof of pasteurization
  • Medical certificate of the Milk handling personnel

4. You will then obtain notification of inspection.

5. Upon successful inspection, you will be required to pay the requisite license fees of Ksh 2,500.  This is an annual fee.

6. Once you have made the payment, the license will be processed within 14 days. The license will be valid for a period of one year.

7. You can now start operations and pay monthly cess and levy as and where applicable. Kindly note that non-compliance can lead to suspension of the permit.


You can always relay on Tassmatt Agencies Limited for Milk Vending ATM Machines in Kenya for your milk bar, Tassmatt assist on obtaining of all the listed licenses upon purchase of the machine. Give them a call via 0726-410068. Keep in mind that milk coolers and milk pasteurizers are also available.

The best company to buy milk ATM in Kenya today

Milk vending ATM machines (milk ATM dispensers) are produced in Kenya by Tassmatt Agencies Limited, (+254 726-410068). Their Vending Milk ATM Machines are programmed to provide you with high levels of accuracy while at the same time allowing you to input customized calibrations that suit your customers.

” We are proud of being the first domestic producer of milk vending machine’s in Kenya, and we aim to reduce the imports of milk vending machines and keep the domestic capital in the country and at the same time give importance to export our products all over the world

We are producing the milk vending ATM machine in accordance with the %100 statement issued by the Ministry of Agriculture, Livestock, Fisheries and Co-operatives  and Kenya Dairy Board.

Our milk vending machines have 4 different capacities and we offer different options such as payment system, cleaning system and operating model.

There are 1 YEAR WARRANTY against manufacturing faults of milk atm vending machines that we produce. We increase our authorized service points every day except our own service.”

MAIN FEATURES OF Milk Vending ATM Machine 

  • 100-180-200-400 Liters capacities are available and even bigger customised
  • Stainless milk tank as per KDB regulations
  • Hygienic design
  • Special milk pump to prevent milk foaming
  • Filling unit washed after each filling
  • Smart cooling system
  • Ability to see milk temperature on the screen


  • Non-returnable coin payment mechanism
  • Paper money and credit card
  • Collection with preloaded systems
  • Barcode printer for supermarkets
  • Possibility cleaning with CIP system

For more information: Contact 0726-410068

Other similar machines are also produced at Tassmatt like Milk Coolers, Milk Pasteurizers, Water Purification Systems, Water ATMS, RO Water machines, Cooking and salad oil ATMs

Understanding The Business Of Milk Chilling Machines In Kenya

A cooler is a scientifically designed mechanized machine wherein the power of outside air and water get utilized and this arrangement helps to maintain the target temperature at a constant level. As a result, the new-age machine is tailor-made to cool or heat substances, like milk, water, beverages, chemicals, etc. The machine serves a dual purpose, ideal for both cooling and heating.

This product is suitable for several industries, including dairy, food processing, and beverages.

As in this website, our focus is bulk milk cooler, let’s now shift our focus to the core subject.

The bulk milk chiller is a modular milk chilling system with the efficiency to cool milk from 35-degree C to 4-degree C. Its capacity may vary from one bulk milk chiller sellers in Kenya to another. Depending on the capacity of your dairy unit, you can choose the quantity of milk in the tank.

In case of special requirements, you are empowered to choose the capacity of the tank while placing special orders to manufacturers. There are a few leading Bulk milk cooler manufacturers who hold professional experience and expertise to manufacture tanks according to your dairy unit’s requirements.

How does the bulk milk cooler work in Kenya?

The machine is designed to remove heat from pasteurization and allows milk to cool down to an appropriate temperature. How does it impact? The cool temperature inside the chiller prevents the germination of bacteria and other microorganisms in milk, as a result, milk is protected from getting deteriorated.

This way shelf life of milk gets extended. With this exclusive system, dairy units have ample time to transport the product to different parts of the city and out of the city.

Chilling is a must as expressed in this section, as soon as the milk is received at the chilling centers. Otherwise, it will deteriorate owing to the germination of microbes.

Chilling has been considered as the most effective method to prevent the deterioration of milk, at the same time, this scientific process doesn’t affect the properties and nutritive value of milk. What an amazing blessing for all of us

Uses of the machine

  • Large dairy plants
  • Small & medium dairy units
  • Village cooperatives
  • Food processing industry


Quantity of milk in the tank

The milk chillers are available in different capacities at Tassmatt Agencies Limited shops 0726-410068. Choose the tank that meets your dairy units requirements.

Here are few standard quantities of milk in the tank:

  • 100 L
  • 500 L
  • 1000 L
  • 1200 L
  • 1500 L


Customization solution is also available with a few famous Bulk milk cooler manufacturers.

Benefits of BMC

A few benefits have already been shared in this blog. We would like to add on to them further. This machine is increasing the earnings of farmers in the dairy business, rearing cattle, milk collection, etc. This in turn raises their socio-economic standard. Sounds great! That’s the impact of the machine.

STUDY; Facts On ATM Milk Segment In Kenya That Buyers Should Take Note

This article is from a study on the ATM milk market segment in Kenya; as outlined-out by Mr. Julis Mwaura of Tassmatt Agencies Limited, a leading milk ATM entrepreneur in Kenya and the following can be concluded:

    1. The Kenyan ATM milk market is growing but concentrated in a few towns, mainly in Nairobi County and neighbouring counties. However, there is a likely general trend of the market segment spreading to other urban areas if the sector is supported. The future potential of the ATM market segment is in targeting growing urban areas across the different counties and targeting all categories of income earners.
    2. The ATM milk market is expanding based on affordability of milk compared to pasteurized packaged milk and has the potential of expanding the formal milk market share beyond the current 30%. to more consumers.
    3. The flexibility in quantity of milk that is sold through milk ATM market segment has enabled consumers to access pasteurized and potentially safe milk thus contributes to household nutritional security. However, the finding indicate that some ATM milk does not meet the safety standards that comprise its value proposition to consumers and the industry.
    4. Consumer perceptions of milk quality were most important in making decisions about where to purchase ATM milk.
    5. The growth of the milk ATM market is linked to a shift from the initial reliance on imported technology towards more locally fabricated machines, which has reduced reduce the cost of the machines. This has stimulated the development and expansion of fabrication and manufacturing industrial cluster. However, this has led to unregulated fabrication that is compromising the quality of these Milk ATM machines in Kenya.
    6. The business ecosystem around the milk ATM retail market is expanding opportunities for job and business creation. In addition to fabrication of milk ATMs, other businesses that have emerged include milk pasteurizing, transportation, milk cooling systems, milk-handling equipment, servicing of the machines and sale of spare parts for milk ATMs in Kenya.
    7. Future growth of the ATM milk supply chain is anchored on
      i) enhancing design of cost-effective,locally fabricated, automated quality assured machines (including calibration, CIP and improvement in energy efficiency);
      ii) building consumer awareness on quality of ATM milk as pasteurized milk since some consumers perceive it as raw milk, and
      iii) a stronger, well-thought through regulatory framework that are more enabling and supportive of expanding milk ATMs quality-oriented market segment. The gaps in regulations for ATM machines and ATM milk (with regulations still in the draft stage) have implications for consumers and the regulator, in terms of food safety concerns as well as opportunistic behaviour of some fabricators, for example use of non-food-grade materials so machines are cheaper to make. With the relevant policy and regulatory framework being in limbo, there has been a rise of food safety issues in the ATM milk market segment.
    8. In terms of future outlook of the milk ATM market segment, the following can be concluded,based on scenarios built:
      • The business-as-usual scenario (status quo) projects the future potential growth of the ATM milk market segment by factors of 2.1–4.4 over the next 10 years.
      • The ATM milk market segment is likely to grow in the future, but it is sensitive to policy andmarket changes. It has the potential to encroach on the informal milk market segment,offering an alternative source of milk to consumers and resulting in maximum growth by afactor of 5.8 of ATM milk volume supplied over the next decade.


  • The milk ATM market segment has the potential to be a game changer in the process of formalization of the milk marketing sector if supported with relevant policy and regulations. GoK could fast-track policy and regulations to address unsafe operations and improve consumer confidence in the ATM milk product in order to utilize its potential, mainly linked to its price competitiveness, to be a game changer in the process of formalization of the milk marketing sector.
  • Despite ATM milk price competitiveness, food safety issues along the supply chain must be addressed. To enhance safe milk handling along the ATM milk supply chain the ATM business operators supported by Government of Kenya, consumer organisations and other stakeholder need to:o Enhance responsible behaviour along the supply chain through labelling and effective traceability systems, which will enhance consumer trust of pasteurized milk. This will require development and deployment of standard operating procedures at the different nodes of the supply chain.

    o Enhance capacity of the operators through a training programme. KDB can involve other parties to assist in this process, such as the public health department and consumer and food safety lobby organizations. This relates to development appropriate training curriculum and identifying effective means of delivery.

    o Work with other agencies, such as the Kenya Revenue Authority to enhance access to cheap food-grade materials, and with KEBS to development and ensure compliance with fabrication standards, to address the quality issues in ATM milk machines. This also calls for working with industry actors to build capacity for innovation in developing quality, affordable technology that meets the required standards.

    o Encourage private sector investment in expanding the ATM milk market, to develop a strong and robust chain that supplies pasteurized milk to ATM market retail outlets in additional towns.


  • Sensitizing consumers and assuring them of quality can grow the market prospect for ATM milk while building on its price competitiveness.
  • With the investments already made by operators, the upcoming regulations should facilitate improvements to the supply chain, for example a phased approach can be developed to stop the use of non-food-grade materials, to safeguard the interest of the investors and move to regulated machines. On the supply side, key enablers for the supply chain are enhancing growth of co-pasteurizers and building stronger linkages between milk ATM machine operators.
  • GoK could enable KDB to strengthen its capacity in terms of enforcement officers, data management systems, ATM milk traceability systems and appropriate systems for registering and monitoring ATMs.
  • Future growth depends on policy and market interventions in the sector by KDB that takes a less prescriptive approach but empowers the different operators along the chain . The interventions to facilitate growth in the milk ATM segment will come not only with finalizing the market and policy direction for the segment but also with meeting KDB capacity needs in terms of enforcement officers, data management systems, ATM milk traceability systems and appropriate systems for registering and monitoring ATMs. Further, increased investments in laboratory capacity and equipment as well as use of technology by KDB (e.g. using geographic information systems to map the milk ATMs and their suppliers) is required to enhance compliance rate.


To purchase quality, cost effective and durable Milk Dispensing ATM Machines in Kenya Today, talk to Tassmatt Agencies Limited via 0726-410068, inline with other related milk systems like milk pasteurizers, milk coolers, milk chillers, water purification systems, water atms in Kenya, salad and cooking oil ATMs in Kenya.