Starting a Water Refilling Station in Kenya: Costs and Profit Margins

As more people realize the value of having access to clean, safe drinking water, water refilling stations have grown in popularity in Kenya. A water replenishing station is a place where clients can buy drinking water that has been purified. Kenyan water refilling station startup costs can vary depending on a variety of elements, such as the facility’s location, size, and equipment.

Starting a water refilling station in Kenya might cost anywhere between Ksh. 500,000 and Ksh. 2,000,000. This covers the price of leasing or buying a location, investing in tools like water filtration systems, water storage tanks, and bottles, as well as paying for the required permits and certifications. A simple system can cost roughly Ksh. 250,000, while the price can vary based on the capacity and features. Depending on the size and amount required, water storage tanks and bottles will vary in price.

Given this, the bottled water industry has a rather large profit margin. Depending on the brand and location, a bottle of water can cost as little as Ksh. 10 to produce but Ksh. 20 or more to sell. This indicates that the profit margin may reach 100% or higher. It’s crucial to keep in mind that there are additional expenses for marketing and distribution that must be taken into account.

Selling bottled water in Kenya can generate large earnings for water corporations. The top five water providers in Kenya reported total revenues of Ksh. 19.3 billion in 2019. This demonstrates the water refilling industry’s potential for expansion and financial success.

It is important to receive the BIS (Bureau of Indian Standards) certification in order to sell bottled water in Kenya. By being certified, water is guaranteed to meet a set of quality requirements. The BIS certification fee can vary, but it normally costs between Kshs. 50,000 and Kshs. 100,000.

It is crucial to understand the distinction between BIS certificates and FSSAI (Food Safety and Standards Authority of India) certifications. Businesses that sell food and beverages must have the FSSAI certification, whilst those that sell bottled water must have the BIS certification. Both certificates guarantee that the goods being sold adhere to strict quality requirements and are suitable for human consumption.

Finally, opening a water refilling station in Kenya might be a successful venture with significant profit margins. The initial investment needed might range from Ksh. 500,000 to Ksh. 2 million, depending on the area and equipment used. The BIS certification, which can cost anywhere between Ksh. 50,000 and Ksh. 100,000, is required for marketing bottled water in Kenya. The Kenyan water refilling market is a promising business opportunity with room for expansion and profitability.