First off, there is a tremendous opportunity for business owners to invest in water vending machines due to Kenya’s high demand for clean, safe drinking water. Several Kenyans lack access to clean drinking water, and those who do frequently deal with issues like water shortages, contamination, and exorbitant rates. Vending machines that sell water provide a practical and economical answer to these problems.
Second, many entrepreneurs find starting a water vending business in Kenya to be an appealing alternative due to the inexpensive startup costs. Depending on the size and functionality, a simple vending machine might cost anywhere from Ksh 50,000 to Ksh 150,000. Even if the price of water treatment equipment, installation costs, and other related costs can pile up, most entrepreneurs can still afford the total cost.
Thirdly, Kenyan water vending enterprises have comparatively significant profit margins. Depending on where you live, water costs anywhere between Ksh 5 and Ksh 20 per litre or gallon. A water vending machine that dispenses 1,000 litres of water per day can make Ksh 10,000 per day or Ksh 300,000 per month in income, assuming an average price of Ksh 10 per litre or gallon. Depending on the operating expenses, the profit margin typically ranges from 30% to 50% of the revenue. Regarding the price of the water, it is significant to highlight that the majority of water vending companies in Kenya utilize purified tap water, which is reasonably priced. However, other businesses, including Dasani and Voss, pay for water that comes from springs and wells in the natural world. Voss pays an average of Ksh 5 per litre to the farmers who own the land where the water source is located, compared to Dasani’s Ksh 1 per litre payment to the community that owns the water source.
In conclusion, Kenya’s great demand for clean, safe drinking water, minimal startup costs, and high profit margins make the water vending industry profitable. While some businesses pay for water from natural sources, the majority of water vending enterprises use affordable, treated tap water. Entrepreneurs that engage in this industry stand to benefit significantly, but they must follow all applicable laws and requirements to assure the quality and security of the water they sell.