NAME OF THE BUSINESS : FATCHIK

ADDRESS : P.O BOX 010-3490

MOTTO : ALL IS POSSIBLE

TITLE : BUSINESS PLAN

PTRESENTED BY : CHEGE PETTER KAMAU

INDEX NO :

INSTITUTION : THIKA TECHNICAL TRAINING INSTITUTE

COURSE TITLE : ELECTRICAL AND ELECTRONIC ENGINEERING (TELECOM OPTION )

COURSE CODE : 1602

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL

EXAM SERIES : NOVEMBER 2015

SUPERVISOR : MR. NZIVO

DECLARATION
I hereby declare that this is my work done through my own research and experience and it has
not been presented in the word of electrical and electronic engineering to any examination
body.

Name : Chege Peter Kamau

Signature :

Date :

This project has been submitted in partial fulfillment for the word of certificate of electrical and
electronic engineering with my approval.

Supervisor :

Signature :

Date :
DEDICATION
This manuscript is special dedication to my parents mr and mrs chege for the financial and their
support and their prayers. Thank you and god bless you my lovely parents.
ACKNOWLEDGEMENT
I acknowledge that, this is my own work. I am also thankful to all those who have used their
time and money to support me in this project.
I also thank my supervisor Mr. Nzivo for guidance that he offered to me during the preparation
of this project.
TABLE OF CONTENT
Title page
Declaration
Dedication
Acknowledgement

CHAPTER ONE
Business description
Background information
Business name
Business log
Business location
Business location
Business address
Form of ownership
Business type
Products and services
Sketch of products
Justification of opportunities
Industry
Goal of the business
Short term goals
Long term goals
Entry and growth strategy
CHAPTER TWO
Marketing plan
Customers
Market share
Sales tactics
 Pricing strategy
Penetration pricing
Competition psychological pricing
Price skimming
Distribution strategy
CHAPTER THREE
Organization and management
Organization chat
Business manager and Qualification
Personnel number and duties
Duties and responsibilities
Qualifications
Sales person
Recruitment and promotion
Remuneration and promotion
License permits and By-laws
Support services
CHAPTER FOUR
Operational product plan
Business flow plan
Operation facilities and capacity
Product strategy
Product prices
Government regulation
Rules and regulations of the business

CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1.1: BACKGROUND INFORMATION
The owner of the proposed business plan is Mr. Chege Peter Kamau, aged twenty three, who
resides in Nairobi Kenya and is currently a student of Thika Technical Training Institute (TTTI).
Table 1: Sponsor’s Educational qualification

9YEAR INSTITUTION QUALIFICATION

2014 Thika Technical Training Pursuing certificate in
Institute (TTTI). Electrical and Electronics
Engineering (Telecom option)
2013 Petanns Driving School Driving license in BCE class
2009 Kigumo Bendera High School Kenya Certificate of Secondary
Education (KCSE)
2000 Mwangaza Primary School Kenya Certificate of Primary
Education (KCPE)

1.2: BUSINESS NAME

The name of the proposed business will be FATCHIK. The purpose of the business will be rearing
chicks for meat and eggs and other products.
1.3: BUSINESS LOCATION
The proposed business will be located in Ruai estate, at the out east of Nairobi along the
Nairobi-Kangundo Highway 30km from Nairobi. It will be about 1km away from Kangundo Road
near the Nairobi sewage treatment area.
Figure 1: Business Location

To
Nairobi

sewage

Ruai
junction

FATCHIK
BUSINESS ADDRESS
Business location

FATCHIK
P.O. BOX 3167-00210
NAIROBI, KENYA.
CELL 0712 345 678/0734567890
E-mail: fatchik@yahoo.com

FORM OF OWNERSHIP
The proposed business will be a sole proprietor type of business this will enable the owner to
divide and manage the profit at his accord and he will have all absolute rights of the business.
The proposed business will be managed by a manager who will be controlling the day to day
activities of the business. He will also head the accounts of the proposed business. He will be
the boss to the co-workers who will look after the chicken.
TYPE OF BUSINESS
The proposed business will be offering services like eggs, chicken meat and other products
produced in the farm of rearing chicken.
PRODUCTS AND SERVICES
The proposed business will mainly deal with chicken rearing in which eggs, meat and chicken
products will be sold to the interested customer. Benefits obtained from the products will
include quality work from the employees who will produce good meat and eggs will be of high
quality, quantity and thus cheap products comparing others farms of the same mode of
business.
JUSTIFICATION OF OPPORTUNTIES
The business will venture into satisfying the customer fully by offering cheap and affordable
prices for its products and for this the best of its work will be provided to the customer and this
will rout to better growth and development of the business to large scale. The business will
create cheap market to customers on poultry products and will make a cheap livelihood to the
growth of other businesses which use its products. It will also create employment to a local
Kenyan.
THE INDUSTRY
The proposed business is in the agricultural industry. The industry employees up to 70% of
Kenyans and its products are used up to 90% in our daily lives. The proposed business is widely
in Kenya and mostly in the world and thus a very big industry. The business is of medium scale,
it lays on 1/8 acre of land. It will be labour intensive where people/employees will be doing lots
of the work apart from the accounting. The other farms are located on more than an acre and it
will employ 5 workers which will include a manager, 3 workers and an overseer. The basic
capital to invest in the business will be 610, 500 Kenya shillings. For good products, decisional
factors are to determine the competitive trends and this will have to be dealt with high speed
of work and creativity and affordable and clean products.

GOALS OF BUSINESS
SHORT TERM GOALS
It will create affordable jobs to the uneducated\unskilled.
Create business to local venders.

LONG TERM GOALS

To produce more poultry products e.g eggs and meat.
Create more employment as it grows
Venture into other poultry products apart from chicken i.e turkey,goose

ENTRY AND GROWTH STRATEGY

The business will purchase building materials and chicks to start up. The pricing strategy
depending on the expenses of the daily running and products as produced also comparing the
market prices. This will give high competition for it will transform to a big business. The
business owner will accept investors whose purpose will be to deliver the desired products of
daily upkeep at a reasonable share. The business owner intends to work only in the business as
a profession once the business prevails.
 CHAPTER TWO
2.0: MARKETING PLAN
2.1: CUSTOMERS
The potential customers will be individuals, hotels, institutions and all who needs poultry
products. They will normally pay in cash or those who can afford poultry products on medium
scale. Issues such as delays and low payments will be abolished just by using individual tactics.
The business will operate full time because of the rearing and upkeep of chicken. Mode of
payment will be cash for small amounts and cheque for large delivery.

2.2: MARKET SHARE

Due to individuality, the business products compared to the potential competitors the market
share is as shown below;

Competition % of Total Revenue % of Total units sold Market Trend

Kenchik 40 40 Increasing

Chicken Inn 30 30 Increasing

Nandos 30 30 increasing

TOTAL 100 100

Table 2: Market Share

 Total Revenue

30%

40%

Kenchik
30% Chicken inn
Nandos

Figure 3a: Market share by Total Revenue

Total units sold

30%

40%

Kenchik
Chicken Inn
30% Nandos

Figure 3b: Market share by Total units sold

2.3: COMPETITION
The potential competitors will be businesses which will be offering the same products and
services and have grown deep in the market. The potential competitors will be based on
outcast of Nairobi thus having large area/land, they will be of large scale compared to the
proposed of which is of medium scale.

2.4: METHODS OF PROMOTION AND ADVERTISING

The proposed business will use common bill boards and newspapers as a form of
advertisement. The business will be advertising yearly on local newspapers. Bill boards will be
from Kangundo Highway to the venue of the farm [exact position]. Of the total profits,
advertisement and bill boards will take 2% of the total revenue approximately Ksh25,000
yearly. This can be reviewed as the growth intensities.
Promotion strategy will include free eggs for the most frequent customers at the end of every 6
months. This will depend on the quantity of the orders made i.e. more than 50 crates, you get 1
crate for free.
Promotion will be done by the manager as long as proper records are done to prevent any
misuse of the funds and promotions will be a form of advertising and good will to the devoted
customers so it will be the business top priorities.

2.5: SALES TACTICS

Sales will be done through own beveal for large quantities and direct at the farm for small
quantities. To achieve this, a good and conducive environment for the workers will have to be
set and to work alongside the workers and curiously watching the market for more customers.

2.6: DISTRIBUTION STRATEGY

The business will have a bureau at the busy city [Nairobi] and will concentrate mainly in Nairobi
before moving to the interior and other parts of Kenya as it expands.

2.7: PRICING STRATEGY

The pricing will be calculated in accordance with daily expenses, transport manpower and the
quantity of the products produced. Other factors be considered are the government pricing i.e
taxes, licensing and insurance also to compare with the competitor’s pricing and profit to be
aimed to keep the growth of the business at a constant and calculated.
No credit terms will be applied, farm expenses will be accounted monthly and proper book
keeping that include computerized receipts and filling necessary. Large sums of cash will be
paid in cheque for security reasons. After sale services, it will depend on frequent and
availability of market for the produce.

Table 3: Price list of some products

PRODUCT PER UNIT LARGE QUANTITY

Eggs 5 12.00 crate(30)
Meat 240 2400(10)
Chicks 20 900(50 chicks)
 CHAPTER THREE

3.0: ORGANIZATION AND MANAGEMENT PLAN

3.1: BUSINESS MANAGER AND QUALIFICATIONS

The proposed business will be managed by an organized team which will include a manager,4
employees and an overseer.
The owner of the business will be the overseer and has the following qualifications;

THE DIRECTOR
QUALIFICATIONS
Mean grade of C+
Pursuing Certificate in Business
Driving in class BCE
DUTIES
To employ and fire any employee
To oversee the running of the business
To transact any business on behalf of the farm
To clear cheques of payment to employees and running of the business
To cater for any expense recurred by the business
RESPONSIBILITIES
Ensure the manager does his rightful duties
To provide the best working environment for the employees
To look into the welfare of the employers
To present a monthly routine to be followed by the manager
To organize all internal or external training of the employees
 BUSINESS ORGANIZATION CHART

DIRECTOR

MANAGER

CLEANER HANDYMAN FEEDER STOREKEEPER

Figure 4: Organization Structure

3.2: PERSONNEL NUMBERS AND DUTIES

The management team will include a director Mr. Chege and a manager Mr. Francis. The duties
and responsibilities of the manager is as follows:
THE MANAGER
ROLES
Transact any business in the absence of the director.
To overview the management of the business daily.
To look into the security of the farm.
Solve any internal problems on behalf of the director.
To report any internal and financial needs to the director.
Handle all transactions of accounts.
RESPONSIBILITIES
To look into the welfare of the employees.
To access all work done throughout the day.
Improve the workforce.
Recommend any hiring or firing of employees.
To open, close and look for the business premises.
3.3: OTHERPERSONNEL
The other personnel will be 4 workers; a cleaner, feeder, handyman and the storekeeper.
The job titles of the employees includes:
Feed the chicken and ensure constant growth.
Clean and ensure good working conditions.
Treat and disinfect the hen houses.
Prepare and arrange all products as per the number required.
Store the produce ready for market.
Identify potential customers and provide appropriate services.
To attend all possible customers approaching farm.
Respect and follow guidelines from the manager or whoever is in charge.

Table 4: Duties and responsibilities of other personnel

Position Duties Responsibilities Incentives

Cleaner To clean the hen Ensure eggs are clean. Free lunch and tea.
house and the eggs. Ensure a good working
Guarantee a clean condition.
environment.
Feeder Feed and water all Produce feeds to the Free lunch and tea.
chickens at all times chickens.
(till 6pm). Ensure the chickens
Handle the feeds at are properly fed.
the specified time.
Handyman Arrange all products. Products are to be Free lunch and tea.
Produce the feeds packed and should
from the store. ensure all handy work
Repair any loose filling is done.
in the hen house. Look after the hen
houses.
Storekeeper Count and record all Security for the feeds. Free lunch and tea.
products produced. Ensure the good
Release and accept all accounting as per the
raw materials products in the store.
delivered.
Skills and Qualifications of other personnel
Cleaner
At least a certificate in ‘O’ level.
Certificate of good conduct.
Kenyan identity card (copy).
Feeders
At least a certificate in ‘O’ level.
Certificate of good conduct.
Kenyan identity card (copy).
Handyman
At least a certificate in ‘O’ level.
Certificate of good conduct.
Must be a Kenyan citizen.
Storekeeper
At least a certificate in ‘O’ level.
Must be a Kenyan citizen.
Certificate of good conduct.

3.4: RECRUITMENT, TRAINING AND PROMOTION

Each employee will have a person file in the computer which will be for the management use
only on their ability, knowledge, accuracy and conduct will be recorded and this will ease in
case of promotion. It will be in 4 parts as shown below:

EMPLOYEES’ APPRAISAL AND EVALUATION FORM

 PART I

Name
Personal No.
Date of birth
Grade
Designation
Date of first appointment
PART II
QUALITIES Assessment Remarks
1) Ability
2) Knowhow of the work
3) Output
4) Technical of work
5) Judgement
6) Initiative
7) Power of supervising
responsibilities
8) Power of supervising staff
9) Conduct
a) Supervising staff
b) Colleagues
c) The public
10) Address

ASSESSMENT KEY
A – Excellent D – Poor
B – Good E – Very Poor
C – Fair
PART III
Remarks of immediate supervisor :

PART IV
Remarks of sectional Head/Chief :

3.5: REMUNERATION AND INCENTIVES

NO. POSITION SALARY (MONTHLY) SALARY INCENTIVES

(YEARLY)
Eoo/M1/001 Manager 20,000 240,000 Free tea and
lunch
Eoo/M2/001 Storekeeper 9,000 108,000 Free tea and
lunch
Eoo/M3/001 Handyman 8,000 96,000 Free tea and
lunch
Eoo/M4/001 Feeder 7,000 84,000 Free tea and
lunch
Eoo/M5/001 Cleaner 6,000 72,000 Free tea and
lunch
TOTAL 50,000 600,000
Table 5: remuneration and incentives

3.6: LICENSE, PERMITS AND BY-LAWS

The following by-laws must be followed, while to operate a business
a) Trade License Act (cap 407)
Requires a business to start operation, it should acquire the license from the Ministry of Trade
and Industry or Statutory Board like the allay canal with powers from the local government
authority.
b) Public Health Act (cap 242)
It stipulates for health safety and welfare of the employees. Area of work should have proper
sanitary facilities, safety kits, and enough rooms with proper ventilation.
c) Registration Act (cap 499)
A business that wishes to be registered should have a title submitted to the registration board.
d) Workman’s Compensation Act (cap 307)
This act makes provision from compensation of employees who suffer accidents during working
hours.
3.7: SUPPORTING, ADVISORS AND SERVICES
The manager will be able to provide best position and class for the banking at the expense of
the business. All booking and accounting will be done by the owner and confirmed by the
manager. Incase of a legal advice a suitable lawyer shall be employed.
Other supporting services will include a bureau that will cater for ordering of feeds and any
equipment that are from a distant.
 CHAPTER FOUR
4.0 OPERATION /PRODUCTOION PLAN

4.1: PRODUCTION FACILITIES AND CAPACITY

Machines required for the proposed business would include; gas lamp/ kerosene lamp, water
feeders, sprayers and freezers.
Table 6: Machine and Equipments

ITEM QUANTITY AMOUNT SUPPLIER

Lamps 20 10000 Muindi supplier
Freezers 2 45000 Muindi supplier
Feeders 1 15000 Muindi supplier
Sprayers 2 8000 Muindi supplier
Total 78000

The proposed business will be located on a private land and internal business plan premise is as
shown below: HI
C
K
E
Figure 5: INTERNAL BUSINESS PLAN
N
H
O
U
S
E
S STAIRCASE

STORE

OFFICES
STAIRCASE

ENTRANCE
The proposed business will not allow expansion and so any desired business expansion would
be done at a leased land at another location as time goes. Other fixed costs would involve the
purchase of furniture, telephone and computer.

Table 7: List of other fixed costs

No. ITEM QUANTITY COST(KSh.)

1 Stationery
2 Telephone
3 Furniture
4 Computer
TOTAL
- 5,000
1 6,000
- 20,000
1 50,000
81,000

4.2: PRODUCTION STRATEGY

The proposed business would require the following materials for production in a month.

Table 8: Monthly material requirements

No. MATERIAL QUANTITY CAPACITY TOTAL(KSh.) SUPPLIER

1 Feeds 1 180kg 10,000 Muidi
2 Disinfectants 1 40litres 3,000 Muidi
3 Kerosene - 50litres 5,000 Muidi
4 Clothing 6 - 4,000 Muidi
TOTAL 22,000

The materials will be transported by the transporter at the cost of Sh.15, 000 per month. The
materials are locally available and shortage cannot be experienced without warning.
Table 9: Preliminary Production Expenses

No. DESCRIPTION COST (KSh.)

1 License and Registration 8,000
2 Rent 5,000
3 Transport 3,000
4 Electricity 2,500
5 Water 500
6 Wages 600,000
7 Telephone 6,000
8 Advertisement 10,000
9 Fuel and Lubricants 20,000
10 Promotion 10,000
11 Insurance 30,000
12 Others 40,000
TOTAL 736,000

4.3: PRODUCTION PROCESS

The process of production is as shown below:

Supplying
6 Months WHOLESALE/RETAIL
EGGS
CHICKS Storage
Feeds

6 Months

Storage
MEAT CAFES/HOTELS etc

Figure 6: Production process

The chicks would take up to 6months to mature under constant growth and development and
the eggs/meat produced is stored until a desired customer. They are supplied under the
management to the desired customers.
Storage is necessary for 6months undergrowth product must be available, the old chicken are
sold as meat to increase monthly income. Competition is high and so produce is to be fulltime.
Due to small workforce, it’s easier to eliminate production expenses and increase produce thus
more profits.

CHAPTER FIVE
 5.0 FINANCIAL PLAN
This chapter mainly deals with the financial section of the proposed business. It will involve the
allocation of the available capital to various business expenses. It’s from here that the owner
will know if there is profit or loss making.

5.1: PRE-OPERATIONAL COSTS

These are the expenses that the business incurs before starting operation.
Table 10: Pre-operation cost for Fatchik

No. ITEMS COST(KSH)

1 Equipments and Machinery 78,000
2 License and Registration 8,000
3 Electricity 2,500
4 Advertisement 10,000
5 Water 500
6 Renovations 15,000
7 Transport 3,000
8 Furniture 20,000
9 Stationery 5,000
10 Wages 600,000
11 Telephone 6,000
12 Rent 5,000
13 Others 100,000
TOTAL 853,000

Assumptions
1. The prices are inclusive of VAT
2. Any damage cause during transportation is incurred by the transporter or distributor.
 5.2: ESTIMATED WORKING CAPITAL
This is an indication of financial position of a business. It shows stability.

Table 11: FATCHIK ESTIMATED WORKING CAPITAL FOR THE PERIOD ENDED
31st DECEMBER 2018

ITEM/YEAR 2016 2017 2018

CURRENT ASSETS
Cash 500,000 500,000 500,000
Debtors 500,000 500,000 500,000

Stock of finished products 17,000 20,000 25,000

Stock of raw materials 11,650 16,000 19,000
Work in progress 10,000 11,000 14,000
A. TOTAL CURRENT ASSETS 538,650 547,000 558,000
Current Liabilities
Creditors 500,000 500,000 500,000
B. TOTAL LIABILITIES 500,000 500,000 500,000
WORKING CAPITAL(A-B) 288,650 297,000 308,000

Working Capital = Total Current Assets (A) – Total Current liabilities (B)
 5.3: CASH FLOW STATEMENTS
Table 12: FATCHIK PROJECTED CASHFLOW STATEMENT FOR THE PERIOD
ENDED 31st DECEMBER 2018

CASH FLOW JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC TOTAL
Cash sales 50,000 70,000 80,000 70,000 60,000 75,000 75,00 70,000 50,000 60,000 55,000 80,000 785,000
0
Bank loan 500,000 - - - - - - - - - - - 500,000
Debtor 200,000 30,000 27,000 27,000 27,000 27,000 27,00 27,000 27,000 27,000 27,000 27,000 500,000
0
Capital 50,000 50,000 60,000 60,000 70,000 65,000 60,00 50,000 80,000 60,000 75,000 55,000 735,000
introduced 0
A. TOTAL CASH 800,000 150,000 167,00 157,00 157,00 167,00 162,0 142,00 177,00 147,00 157,00 162,00 2,520,000
INFLOW 0 0 0 0 00 0 0 0 0 0
CASH OUT FLOW

Cash purchases 50,000 4,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 4,000 3,500 65,500

Salaries/wages 50,000 50,000 50,000 50,000 50,000 50,000 50,00 50,000 50,000 50,000 50,000 50,000 600,000
0
Taxation 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000

Loan Repayment 40,000 40,000 40,000 40,000 40,000 40,000 40,00 40,000 50,000 50,000 40,000 40,000 500,000
0
Advertisements 5,000 3,000 2,000 10,000

Insurance 30,000 30,000 30,000 30,000 30,000 30,000 30,00 30,000 30,000 30,000 30,000 30,000 360,000
0
Licenses 5,800 200 200 200 200 200 200 200 200 200 200 200 8,000
Repair/Maintena 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 15,000
nce
Electricity 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000

Water 500 500 500 500 500 500 500 500 500 500 500 500 6,000
Transport 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

B. TOTAL CASH 189,050 132,450 131,45 131,45 131,45 134,45 131,4 131,45 141,45 141,45 132,45 133,95 1,654,500
OUTFLOW 0 0 0 0 50 0 0 0 0 0
C. NET CASH(A- 610,950 17,550 35,550 25,550 25,550 32,550 30,55 15,550 35,550 5,550 24,550 28,050 865,500
B) 0
BALANCE BID 102,800 125,30 139,50 148,50 161,80 161,3 165,90 186,50 205,10 218,70 245,70
0 0 0 0 00 0 0 0 0 0
ACCUMLATED 102,800 125,300 139,80 148,50 161,30 165,90 186,9 205,10 218,70 236,20 245,70 256,60
CASH 0 0 0 0 00 0 0 0 0 0,

5.4: PROFORMA INCOME STATEMENT

Table 13: FATCHIK PROFORMA INCOME STATEMENT FOR YEARS ENDING 2016,
2017, 2018.
DESCRIPTION 2016(KSH) 2017(KSH) 2018(KSH)
Sales 700,000 800,000 900,000
Cost of goods sold 86,464 90,064 92,000
Gross profit 613,536 709,936 808,000
Expenses
Salaries/wages 180,000 180,000 180,00
Advertising 10,000 10,000 10,000
Electricity 33,600 33,800 34,000
Water 2,400 2,500 2,600
Transport 36,000 36,000 36,000
Fuel/lubricants 12,000 12,500 13,000
Telephone 8,000 9,000 11,000
Insurance 60,000 62,000 65,000
License 8,000 10,000 12,000
Repair/maintenance 15,000 19,000 25,000
Miscellaneous 25,500 30,000 35,000
Total(expenses) 390,500 404,800 423,600
Net profit 223,036 305,136 384,400
Less(16% tax)
Net profit after tax 137,350 256,314 322,896
5.5: PROFORMA BALANCE SHEET
Table 14: FATCHIK PROFORMA INCOME BALANCE SHEET FROM DECEMBER
2016 TO DECEMBER 2018
ITEM ASSETS 2016(KSH) 2017(KSH) 2018(KSH)
FIXED ASSETS
Equipment & maintenance 10% 52,200 46,980 42,282
accumulated depreciation
Furniture’s 10% accumulate 18,000 16,000 14,580
depreciation
Others 10% accumulated 189,000 170,100 153,090
depreciation
TOTAL FIXED ASSETS 259,200 233,230 209,952
Current Assets
Cash 500,000 500,000 500,000
Stock of finished goods 17,000 39,000 70,000
Stock of raw materials 11,650 16,000 19,000
Work in progress 10,000 11,000 14,000
Debtors 500,000 500,000 500,000
Total current assets 536,650 566,000 603,000
Total assets 797,850 799,280 812,952
Liabilities
Current liability
Creditors 500,000 500,000 500,000
Total (current liabilities) 500,000 500,000 500,000
Long term liability
Bank loan 500,000 500,000 500,000
Owners equity 110,500 42,966 9,944
Net profit after tax 797,850 799,280 812,952
5.8: PROFITABIL ITY RATIO ANALYSIS
Table 15: Profitability Ratio Analysis

RATIO 2016 2017 2018

¿ 613,536∗100 ¿ 709,9368∗100 ¿ 808,000∗100
= = =
Gross profit % 700,000 800,000 900,000
Gross profit∗100 87.65% 88.74% 89.8%
=
sales
Net Profit % 223,036∗100 305,136∗100 384,400∗100
= = = 42.7%
NP∗100 700,000 800,000 900,000
=
sales 31.86% 38.14%

Return on equity % 187,350∗100 256,314∗100 322,896∗100

= = =
NP after Tax∗100 610,500 542,966 509,944
=
owners equity 30.69% 47.21% 63.32%
APPENDIX II
BUSINESS LOCATION

To
Nairobi

sewage

Ruai
junction

FATCHIK
Business location

To Kangundo
 APPENDIX I

LOCATION MAP
PRIVATE ESTATE
UMOJA
OWNERSHIP
TOWN
TO PETER
DUME PETROL KIPKOSIA
STATION SCHOOL
CITY COUNCIL
ACK
To Muhuri ESTATE
Muchiri Grounds VICKMERY
SCHOOL

TO RURAL NCC OFFICES

SHELTER
VILLA FATCHIK
BLUE
ESTATES
INN
LAND OWNERSHIP TO
INDIVIDUAL

kamulu To Kangundo