How to Start a Peanut Butter Business in Kenya
🥜 Turning Peanuts into Profit
If you’re looking for a small, realistic business that can start from as little as Ksh 10,000, peanut butter production is one of the best. It’s simple, highly profitable, and requires very little space — even your kitchen or a small kiosk can do. With the growing awareness of healthy eating among Kenyans, peanut butter has steady demand in both rural and urban areas.
💰 Estimated Startup Capital: Ksh 10,000 – 12,000
| Item | Estimated Cost (KES) |
|---|---|
| Raw peanuts (10 kg) | 2,000 |
| Small manual or electric grinder | 4,000 |
| Plastic jars & labels (20–30 pcs) | 2,000 |
| Cooking oil, sugar, salt (optional) | 500 |
| Gas/charcoal or electricity | 500 |
| Miscellaneous (spoons, gloves, packaging) | 1,000 |
| Total Approximate Cost | 10,000 – 12,000 |
⚙️ How the Business Works
- Sourcing: Buy clean, dry peanuts from local markets or wholesalers.
- Roasting: Lightly roast them until golden brown — this improves taste and shelf life.
- Peeling & Grinding: Remove skins, then grind using a peanut butter machine or small electric grinder.
- Mixing (optional): Add small amounts of oil, sugar, or salt depending on customer preference.
- Packaging: Scoop into clean, labeled jars (250 g – 500 g sizes).
- Selling: Supply to local shops, supermarkets, open-air markets, or through social media and WhatsApp.
📈 Expected Profits
From 10 kg of peanuts (costing about Ksh 2,000), you can make roughly 20 jars of 500 g each.
At an average selling price of Ksh 300 per jar, you earn Ksh 6,000 in revenue.Even after deducting costs, you can make Ksh 2,000 – 3,000 per batch, and once you scale up production or get bulk orders, your profits grow quickly.
🔑 Tips for Success
Start small, scale fast: Begin with 10 kg and reinvest profits to buy better packaging and grinder.
- Quality first: Always use clean peanuts; aflatoxin contamination ruins reputation.
- Attractive packaging: Clear jars with simple stickers look professional and attract customers.
- Social media sales: Market on Facebook groups and WhatsApp to reach nearby buyers.
- Diversify: Offer crunchy, smooth, sugar-free, or honey-flavored variants.
📦 Optional Add-Ons
- Groundnut roasting & coating business
- Retail peanut butter supply to schools or mini-supermarkets
- Branding & label design services (add small fee for personalized jars)
🌍 Final Thoughts
Starting small doesn’t mean staying small. With determination, proper hygiene, and creative marketing, your Ksh 10,000 investment can grow into a steady side hustle or even a family business.
Every jar you sell puts you one step closer to financial independence — start today!