How to Start a Bottled Water Business in Kenya

Bottled water is one of the most profitable businesses in Kenya, especially in urban areas where tap water is often unreliable or unsafe. According to a report by Research and Markets, the bottled water market in Kenya is expected to grow by US$ 286 million during 2021-2027, at a compound annual growth rate (CAGR) of 9.1%. This means that there is a huge demand and potential for bottled water entrepreneurs in the country.

However, starting a bottled water business is not as easy as it may seem. There are many factors and challenges that you need to consider before you can launch your venture successfully.

luckily for you, in this article, we will guide you through the steps and requirements of setting up a bottled water business in Kenya, as well as the opportunities and tips that can help you grow your business in 2024 and beyond.

Step 1: Choose Your Type of Bottled Water

The first step to setting up a bottled water business is to decide what type of bottled water you want to produce and sell. There are different types of bottled water in the Kenyan market, such as:

• Mineral water

This is water that contains natural minerals and trace elements, such as calcium, magnesium, potassium, sodium, etc.

Mineral water is usually sourced from underground springs or wells, and it has to meet certain standards of purity and composition to be bottled.

Mineral water is considered to be healthy and premium, and it can command a higher price than other types of bottled water.

• Purified water

This is water that has been treated and filtered to remove impurities, such as bacteria, viruses, chemicals, metals, etc.

Purified water can be sourced from any type of water, such as tap water, river water, lake water, etc.

Purified water is the most common and affordable type of bottled water in Kenya, and it can be further enhanced by adding flavors or carbonation.

• Sparkling water

This is water that has been infused with carbon dioxide gas to create bubbles and fizz.

Sparkling water can be either natural or artificial, depending on the source and method of carbonation.

Sparkling water is popular among consumers who prefer a refreshing and fizzy drink, and it can also be mixed with other beverages, such as juices or cocktails.

• Flavored water

This is water that has been flavored with natural or artificial ingredients, such as fruits, herbs, spices, etc.

Flavored water can be either still or sparkling, depending on the preference of the consumers.

Flavored water is appealing to consumers who want a tasty and low-calorie drink, and it can also cater to different market segments, such as children, women, sports enthusiasts, etc.

• Spring water

This is water that flows naturally from an underground source to the surface.

Spring water is similar to mineral water in terms of quality and composition, but it does not have to meet the same standards of certification and labeling.

Spring water is scarce in Kenya, and it can be very expensive to source and transport.

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You need to choose your type of bottled water based on your target market, your budget, your production capacity, your distribution channels, and your competitive advantage.

As a rule of thumb for any successful business in Kenya, you need to comply with the relevant regulations and standards for each type of bottled water in Kenya.

Step 2: Find Your Source of Water

After choosing the type of bottled water that you want to produce, you need to find a reliable and sustainable source of water for your bottled water business.

Before settling for any source, make sure it meets the quality and safety requirements for human consumption.

You also need to consider the cost and availability of your source of water throughout the year.

There are different sources of water that you can use for your bottled water business in Kenya, such as:

• Municipal or public supply

This is the easiest and cheapest source of water for your bottled water business.

However, you need to treat and purify the municipal or public supply before you can bottle it for sale.

You also need to obtain a commercial use permit from the relevant authorities.

• Borehole or well

This is a good source of water for your bottled water business if you have access to groundwater resources on your premises or nearby.

However, you need to drill and maintain the borehole or well properly to avoid contamination or depletion.

You also need to test and monitor the quality and quantity of the groundwater regularly for convenience purposes.

• River or lake

This is a potential source of water for your bottled water business if you are located near a natural surface water body.

But if you are going to use river or lake water for your water bottling business, you need to ensure that the river or lake is not polluted or affected by seasonal variations.

You also need to obtain a permit from the Water Resources Authority (WRA) for abstracting surface water.

• Rainwater harvesting

This is an alternative source of water for your bottled water business if you have adequate roof space and storage tanks on your premises.

However, you need to collect and store the rainwater safely and hygienically to avoid contamination or spoilage.

You also need to treat and purify the rainwater before you can bottle it for sale.

Based on your location, your production volume, your environmental impact, and your legal compliance you can choose a water source that fits your business.

Other than identifying a water source, you need to install and operate the necessary equipment and facilities for pumping, storing, treating, and filtering your source of water.

Step 3: Register Your Business Name and Logo

Have you sorted out the first two steps?

Next, you need to register your business name and logo with the relevant authorities in Kenya.

Be sure to choose a unique and catchy name and logo for your bottled water business that will attract and retain your customers.

And if you have a few coins to save, consider protecting your business name and logo from infringement or imitation by other competitors.

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How to register a bottled water business in Kenya

There are different steps and requirements for registering your business name and logo in Kenya, such as:

• Business name registration

This is the process of registering your business name with the Registrar of Companies (RoC) under the Companies Act, 2015.

You need to conduct a name search online or at the Huduma Centre to check the availability of your desired business name.

When that is done, you’ll need to fill and submit the BN/2 form online or at the Huduma Centre, along with a fee of Ksh 150.

If the process goes smoothly, you should receive a certificate of registration within a few days.

• Trademark registration

This is the process of registering your business logo with the Kenya Industrial Property Institute (KIPI) under the Trademarks Act, 2002.

Should you choose to go this route, you’ll need to conduct a trademark search online or at the KIPI office to check the availability of your desired business logo.

You will need to pay a filing fee of Ksh3,000 – due when the application is filed; Publication fee of Ksh3,000 – due after 18 months from the filing date; Examination fee of Ksh 5,000 – due within 3 years from the filing date; Grant fee of Ksh 3,000 – due once the patent has been accepted for grant.

Before you start operating your bottled water business, ensure you register your business name and logo to avoid any delays or disputes in the future.

You also need to renew your registration periodically to maintain your rights and privileges.

Step 4: Obtain Your Licenses and Permits

The fourth step is to obtain the necessary licenses and permits for operating your bottled water business in Kenya.

Applying for all these permits will ensure that  you comply with the various laws and regulations that govern the bottled water industry in Kenya, such as:

• Food safety license

This is a license that you need to obtain from the Public Health Department under the Food, Drugs, and Chemical Substances Act, 2012.

You need to apply for this license at your county government office, along with a fee of Ksh 5,000 per year.

You will receive an inspection report and a license within a few weeks.

• KEBS certification

This is a certification that you need to obtain from the Kenya Bureau of Standards (KEBS) under the Standards Act, 2015.

You need to apply for this certification online or at the KEBS office, along with a fee of Ksh 10,000 per year.

• NEMA license

This is a license that you need to obtain from the National Environment Management Authority (NEMA) under the Environmental Management and Coordination Act, of 1999.

You need to apply for this license online or at the NEMA office, along with a fee of Ksh 10,000 per year.

You will receive an environmental impact assessment report and a license within a few months.

Try to obtain these licenses and permits before you can start producing and selling your bottled water in Kenya.

You also need to renew these licenses and permits annually or as required by law.

Step 5: Purchase Your Equipment and Supplies

The fifth step is to purchase the equipment and supplies that you need for producing and packaging your bottled water in Kenya. You need to ensure that you have adequate and quality equipment and supplies that will meet your production capacity and standards.

There are different types of equipment and supplies that you need for your bottled water business in Kenya, such as:

• Water treatment equipment: This is equipment that you need for treating and purifying your source of water before bottling it for sale.

There are different methods of water treatment, such as reverse osmosis, ultraviolet sterilization, ozone disinfection, etc.

The cost of water treatment equipment varies depending on the type, size, capacity, and quality of the equipment.

• Bottling equipment: This is equipment that you need for filling and sealing your bottles with water for sale.

There are different types of bottling equipment, such as automatic or semi-automatic bottling machines, capping machines, labeling