How to Make Money with a Milk ATM Vending Machine Business in Kenya

If you are looking for a profitable and low-risk business idea in Kenya, you might want to consider the milk ATM vending machine business. This is not a new concept in the country, but it has already proven to be a lucrative venture for many entrepreneurs. In this post we will be discussing how to start a milk ATM vending machine business in Kenya.

A milk dispensing machine is a device that dispenses fresh milk to customers who pay using coins, notes, or mobile money. The machine is connected to a refrigerated tank that stores the milk and keeps it at the optimal temperature. The machine also has a digital display that shows the amount of milk and the price per liter.

The milk ATM vending machine business is appealing for several reasons:

• It taps into the high demand for milk in Kenya, where milk is a staple food for most households.
• It offers customers a cheaper and fresher alternative to packaged milk, which is often adulterated or expired.
• It reduces wastage and spoilage of milk, as the machine only dispenses the exact amount that the customer pays for.
• It saves on operational costs, as the machine does not require much maintenance or supervision.
• It generates a steady income, as the machine can operate 24/7 and attract customers from different walks of life.

How to start a milk ATM vending machine business in Kenya

If you are interested in starting a milk ATM vending machine business in Kenya, here are some steps that you need to follow:

1. Find an Ideal Location

The location of your milk ATM vending machine business is crucial for the success of your business. You want to choose a place that has a high population density and a lot of foot traffic. Some of the best places to set up your milk dispenser are:

• Near residential estates, where you can target families and individuals who need milk for their daily consumption.
• Near schools, colleges, or universities, where you can target students and staff who need milk for their breakfast or snacks.
• Near markets, bus stops, or shopping centers, where you can target shoppers and commuters who need milk for their refreshment or as a takeaway.
• Near hospitals, clinics, or pharmacies, where you can target patients and visitors who need milk for their health or as a gift.

You should also consider the competition, security, and accessibility of the location. You want to avoid places that have too many other milk vendors or shops, as they might reduce your sales or lower your prices. You also want to ensure that the location is safe and secure, both for your machine and your customers. Finally, you want to make sure that the location is easily accessible by road, power, and water, as these are essential for your business operations.

2. Procure a Good Milk ATM Vending Machine

The next step is to buy a good quality milk ATM that suits your budget and your customer’s needs. You can either buy a new or a used machine, depending on your preference and availability. You can also choose between a local or an imported machine, depending on your quality and cost expectations.

A local milk ATM vending machine is that is manufactured in Kenya by a local company, such as Gditech will be most preferable. These machines are usually cheaper and easier to transport and install, as they are made with locally available materials and parts. However, they might have lower capacity, durability, or functionality, as they are not as advanced or standardized as the imported machines. At Gditech, we make KEBS approved milk dispensers at very affordable prices.

An imported milk dispenser is one that is manufactured outside Kenya, mainly in China or India. These machines are usually more expensive and harder to transport and install, as they are subject to import duties, taxes, and regulations. 

The price of a milk ATM vending machine can range from Ksh 70,000 to Ksh 250,000, depending on the size, brand, and condition of the machine. The capacity of a milk ATM vending machine can range from 50 liters to 250 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. You can view prices of our milk ATMs here.

3. Organize for Constant Milk Supply with Local Farmers

The most important aspect of your milk ATM business is the quality and consistency of your milk supply. You need to ensure that you have enough milk to fill your machine every day and that the milk is fresh, pure, and safe for human consumption. You also need to ensure that you get the milk at a reasonable price that allows you to make a profit.

The best way to secure your milk supply is to link up with local farmers or suppliers who can provide you with raw milk from their cows or goats. You can either buy the milk directly from them or through a cooperative or a middleman. You can also source the milk from different places, depending on the availability and the season.

You should visit the farms or the collection centers and inspect the quality and the hygiene of the milk before you buy it. You should also negotiate the price and the payment terms with the farmers or the suppliers and agree on a contract that binds them to deliver the milk to you regularly and reliably. You should also have a backup plan in case of any disruptions or shortages in your milk supply.

4. Obtain Necessary Licenses and Permits

The last step is to obtain the necessary licenses and permits that allow you to operate your milk ATM vending machine business legally and safely. You need to comply with the rules and regulations of the Kenya Dairy Board (KDB), the county government, and the public health authorities.

The KDB is the statutory body that regulates the dairy industry in Kenya. It issues licenses and certificates to milk producers, processors, and vendors, and ensures that they meet the standards and requirements of quality, safety, and hygiene. You need to apply for a milk 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.

Conclusion

A milk ATM 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 find a good location, buy a good machine, secure a good milk supply, and obtain the necessary licenses and permits. You can then enjoy the benefits of selling fresh and cheap milk to your customers and making money from your machine.

If you need more help or information on how to start a milk ATM vending machine business in Kenya, you can get in touch with us.

You can reach us through any of the following channels:

• Call us or WhatsApp us. You can call us or send us a message on our phone number +254 715 01 45 10 and talk to one of our customer care representatives. They will answer your questions and guide you on how to order your RO system.
• Email us or fill out our form. You can email us at gditech2019@gmail.com or info@gditech.co.ke and we will get back to you as soon as possible. You can also fill out our contact us form and we will contact you shortly.
• Visit our workshop & showroom. You can visit our workshop in Ruiru or showroom in Eldoret, where you can see our machines in action and talk to our friendly staff. You are welcome to visit our branches located strategically in Ruru and Eldoret:
  • Ruiru Branch: You can find us behind the Shell petrol station in Kihunguro, where our dedicated team is ready to assist you.
  • Eldoret Branch: You can visit our Eldoret branch at Rehema Complex, opposite Japara Ltd., along Oloo Street in Eldoret. Our branch staff will provide you with personalized guidance and support.

We are looking forward to hearing from you and helping you start your milk vending business. Thank you for choosing Gditech as your trusted manufacturer of milk vending ATM machines in Kenya.