By Kelvin Allan
IN KENYA, SWEET potatoes have long been a dietary staple, cherished for their nutritional richness and versatility. However, beyond their traditional consumption, sweet potatoes present abundant business opportunities through value addition. Entrepreneurs in Kenya are increasingly recognizing the potential of sweet potato value-added products, tapping
into diverse markets and creating innovative offerings. In this piece, we explore the vigorously growing landscape of sweet potato. value addition in Kenya, examining the initial investments required, profit margins, and effective marketing strategies for success.
With rising consumer awareness of health and nutrition, coupled with a growing preference for locally sourced and sustainable products, the demand for value-added sweet potato products in Kenya is on the rise. From sweet potato flour and chips to beverages and bakery products, entrepreneurs have a wide array of options to explore in the value- addition sector. The versatility of sweet potatoes, coupled with their abundance and affordability, makes them an attractive raw material for innovative businesses seeking to cater to evolving consumer preferences.
Initial Investments and Profit Margins: The initial investments required for venturing into sweet potato value addition can vary depending on the scale and complexity of the operation. However, here is a rough estimate of the initial investments required for some common sweet potato value-added products:
Sweet Potato Flour Production:
To make sweet potato flour, you will require a potato crusher and a miller.
Method:
- Wash the fresh potatoes with clean water.
- Drain the water.
- Place in a potato crusher, then crush into small pieces.
- Sun-dry/use a dryer for 2-3 days to maintain its original color.
- Mill the potato dried chips to get the flour.
The dried chips can be stored by using hematic bag/airtight bag and can stay fresh for almost 2years. Ensure to place the packed potatoes in a cool and dry place, that is raised from the floor to avoid attracting moisture. The sweet potato flour is used to make cakes, bread, biscuits, doughnuts, porridge, mandazi,chapati, samosas.
Setting up a small-scale sweet potato flour production unit may require an initial investment ranging from KSH 200,000 to KSH500,000. This includes the cost of equipment such as grinders, dryers, and packaging machines,
as well as raw material procurement and facility setup. Profit margins for sweet potato flour production can range from 30%-50%, and these profit margins can be achieved within 6-12 months of operation depending on
factors such as production efficiency, market demand, and pricing strategies.
For example, a small-scale sweet potato flour production unit can produce approximately 500 kilograms of sweet potato flour per month. With a selling price of KSH 200 per kilogram, the monthly revenue could amount
to KSH 75,000. After deducting production costs, including raw materials, labour, and overhead expenses, the monthly profit margin could range from KSH 25,000 to KSH 50,000.
Sweet Potato Chips and Snacks:
Crisps
Ingredients:
- 6 medium sized roots, 2cups of oil, salt,
or pepper.
Method:
- Remove soil from the roots, peel and place the roots into clean water.
- Slice into very thin pieces using a knife or a grater.
- Drain off then water.
- Heat the oil and deep fry till it turns golden.
- Remove and serve either warm or cold.
Crunchies/ crackies/ bhajia
Ingredients:
- 3 cups of mashed potato
- 1 cup of wheat floor
- 1 teaspoon of salt
- ½ Teaspoon hot pepper (optional)
- Cooking oil
- Lukewarm water
Method
- Sieve all the dried ingredients to a mixing bowl.
- Add oil.
- Add mashed potato.
- Add pepper optional.
- Mix to form smooth dough until it leaves the bowl clean.
- Add a little lukewarm water, keep mixing until hard and smooth.
- Cover it immediately with a clean cotton cloth
- Cut, stuff into the noddle machine, rotate the machine to get the desired shape and dip them in the heated oil.
- Cook, turn and remove when they are still yellow to let them cool.
Chips
Ingredients:
- 4 medium sized potatoes, oil
Method:
- Wash and peel potatoes and cut into desired
shape. - Soak in salty water for 10mins to remove excess starch.
- Drain water by drying off with paper/kitchen towel.
- Deep fry in hot oil for 2-3 mins.
- Sprinkle with salt to taste
N/B: You can prepare with non-peeled sweet potatoes.
For entrepreneurs looking to produce sweet potato chips and snack foods, the initial investment could range from KSH 100,000 to KSH 300,000. This includes the cost of slicing and frying equipment, packaging materials, and initial raw material procurement. Profit margins for sweet potato chips and snacks typically range from 40% to 60%, achieved within 3 to 6 months of operation depending on factors such as branding, distribution channels, and product differentiation.
For instance, a small-scale sweet potato chips production unit can produce approximately 200 kilograms of sweet potato chips per month. With a selling price of KSH 300 per kilogram, the monthly revenue could amount to KSH 60,000. After deducting production costs, including raw materials, labour, and packaging, the monthly profit margin could range from KSH 24,000 to KSH 36,000.
Sweet Potato Beverages:
Juice
Ingredients: 4 raw grated orange fleshed sweet potato, 5 cups of
water,5 tablespoons of lemon juice and ½ cup of sugar to taste.Method:
- Grate the sweet potato
- Boil water and sugar to make syrup
- Add the grated sweet potato to syrup stir
- Let it cool, sieve and add the lemon juice
Smoothies,
Ingredients; Sweet potato (orange -fleshed varieties), milk, flavours
(vanilla, strawberry), sugar.Method:
- Boil the sweet potato and milk separately (optional).
- Mix all the ingredients and blend to your preferred texture.
- Serve.
Venturing into sweet potato beverage production may require an initial investment of KSH 300,000 to KSH 600,000. Profit margins for sweet potato beverages can vary widely but are generally around 50%-70%,and these profit margins are achieved within 6-12 months of operation.
For example, a small-scale sweet potato beverage (smoothie) production unit can produce approximately 1,000 litres of sweet potato juice/ smoothie per month. With a selling price of KSH 100 per litre (KSH 50 per 500ml glass), the monthly revenue could amount to KSH 100,000. After deducting production costs, including raw materials, processing, and packaging, the monthly profit margin could range from KSH 25,000 to KSH 40,000.
Bakery and Confectionery Products:
Producing sweet potato-based bakery and confectionery products may require an initial investment ranging from KSH 150,000 to KSH 400,000. Profit margins for bakery and confectionery products can range from 40%-60 %, and these profit margins are usually achieved within 6 to 12 months of operation.For instance, a small-scale bakery specializing in sweet potato muffins can produce approximately 150 muffins/day and package them into 25 half-dozen packs. That means per month, the bakery would do 300 packages of muffins. With a selling price of KSH 250 per package, the monthly revenue could amount to KSH 75,000 from just the half dozen packages of muffins, not including sales from single-piece customers. After deducting production costs, including raw materials, labour, and packaging, the monthly profit margin could range from KSH 20,000 to KSH 30,000.
Subscribe to our newsletter!