You’ve got your produce packed, your crafts ready, or your chickens sorted. Now, the big question hits: do you call that middleman from Gikomba or do you wake up at 4 am to hustle at Marikiti yourself? This choice between selling to middlemen vs. selling directly to markets in Kenya can make or break your profit margins.
We’re breaking down the real pros and cons, from cash flow to customer loyalty, so you can decide what works for your pocket and your peace of mind.
What is a Middleman in the Kenyan Context?
In our markets, a middleman (or broker) is the person who buys goods from producers like you and sells them to retailers, other markets, or exporters. Think of the guy who meets you at the Nairobi’s Wakulima Market gate with a calculator and a wad of cash. His game is volume. He buys large quantities from many farmers or artisans, aggregates them, and moves them to where demand is high.
He’s not your enemy. He provides a crucial service, especially when you’re far from the main city markets. But understanding his role is key to negotiating better. He takes on the risk of transport, spoilage, and price fluctuations—that’s why he buys from you at a lower price. It’s a trade-off between convenience and control.
Selling to Middlemen: The Pros
Choosing the broker path has some undeniable advantages, especially when you’re starting out or dealing with perishables.
Immediate Cash Payment
This is the biggest draw. Once he inspects your goods and you agree on a price, you get paid in cash on the spot. No waiting for customers, no chasing debts. That cash can go straight back into buying more stock or covering urgent bills. For many small-scale farmers in regions like Mt. Kenya, this instant liquidity is a lifesaver.
Saves Time and Logistics Headache
You avoid the cost and stress of transport. No hiring a lorry to Nairobi, no paying for a stall at the market, no dealing with county askaris for permits on that day. The middleman handles all that. You just deliver to an agreed point, often near your farm or workshop. This frees you up to focus on production.
Guaranteed Bulk Sale
Selling 50 sacks of potatoes to one person is faster than selling 2 kilos to 500 different customers. Middlemen buy in bulk, clearing your inventory in one go. This is critical for seasonal produce like mangoes from Makueni during the peak season—you need to move it fast before it rots.
Selling to Middlemen: The Cons
Convenience comes at a cost. Here’s where the middleman model can pinch.
Lower Profit Margins
This is the direct trade-off. The middleman needs to make his profit, so he will buy from you at the lowest price possible. You might sell a kilo of tomatoes for KES 40 to him, while he sells it for KES 80 in the city. You lose out on that extra KES 40 per kilo. Over a season, that’s a massive amount of money left on the table.
Price Dictation and Exploitation
Especially if you’re in a remote area with few buyers, middlemen can collude to set very low prices. You have little bargaining power. They might also use faulty scales or downgrade your quality to justify a lower price. It’s a relationship that can easily become exploitative if you’re not careful and informed.
No Direct Market Connection
You never learn who your end customer is. You don’t get their feedback, you can’t build a brand, and you have no idea why prices are high or low. This keeps you forever dependent on the broker’s word. You miss out on building customer loyalty, which is the foundation of a sustainable business.
Selling Directly to Markets: The Pros
Taking your goods straight to the market is the purest form of hustle. It’s tough but rewarding.
Higher Profit Potential
You capture the full retail price. If a middleman would buy your sukuma wiki at KES 20 a bunch, selling directly at Marikiti or your local open-air market could fetch you KES 50. That’s more than double the profit. This direct income allows for faster business growth and better household stability.
Builds Your Brand and Customer Base
When you sell directly, people know you. They come back for your specific potatoes from Nyandarua or your handmade baskets. You can get their M-Pesa number, create a WhatsApp group for your “Tuesday specials,” and build real loyalty. This turns casual buyers into repeat customers who seek you out.
Real-Time Market Intelligence
Being in the market teaches you everything. You see what sells fast, what prices are doing daily, and what customers are complaining about. This info is gold. It helps you decide what to plant or make next season. You’re no longer in the dark; you’re a smart, informed trader.
Selling Directly to Markets: The Cons
The direct route isn’t a walk in Karura Forest. Be ready for these challenges.
High Upfront Costs and Logistics
You need transport. Whether you’re using a contracted pick-up, a matatu with your goods on the roof, or a boda boda for smaller items, it costs money. You also need to pay for a market stall (like KES 200-500 per day in a major market), get a county government trader’s permit, and possibly pay for storage. These costs eat into your profits.
Time-Consuming and Physically Demanding
Direct selling is a full-day, every-day job. You leave home by 4 am, set up your stall, hustle all day, and break down by 6 pm. It’s physically draining. You also have to deal with all customer queries, haggling, and complaints personally. There’s no off switch.
Market Risks and Unsold Stock
The market is unpredictable. A sudden downpour during the long rains can mean zero customers. A new competitor can undercut your price. You might end the day with unsold, perishable stock that becomes a total loss. You carry 100% of the sales risk.
The Kenyan Reality Check: Costs, Seasons & Survival Tips
Let’s get specific with local figures and rhythms. Your choice isn’t just philosophical; it’s dictated by the Kenyan shilling and the weather.
First, do the math. If a middleman offers you KES 3,000 for a 90kg bag of potatoes, but the direct market price is KES 6,000, calculate your direct costs: Transport from Mau Narok to Nairobi (KES 800), market fees (KES 300), meals for the day (KES 500). Your net direct profit is KES 6,000 – KES 1,600 = KES 4,400. You make KES 1,400 more by going direct. Is that worth your day and risk? Sometimes yes, sometimes no.
Seasonality is your boss. During the dry season when vegetables are scarce, you have more power. You can demand better prices from middlemen or take the goods direct confidently. In the rainy season when everyone’s harvest is flooding the market, the middleman’s guaranteed bulk sale might be your safest bet to avoid total loss.
One pro tip: Use a hybrid model. Start by selling bulk to a trusted middleman to ensure you cover your production costs. Then, take a smaller portion of your highest-quality produce to a niche market (like a weekend farmers’ market in Karen or at the Maasai Market) to sell direct at premium prices and build your brand. This balances risk and reward perfectly.
Who Should Use a Middleman?
- Beginners: If you’re new and don’t understand market dynamics, use a middleman for the first few seasons to learn the ropes without huge risk.
- Large-Scale Producers: If you have 10 acres of watermelons, you physically cannot sell them all retail. A middleman or several are essential.
- Those Far from Markets: If you’re in Voi and your main market is in Mombasa, the transport logistics might be too complex and costly to manage alone.
- When You Need Fast Cash: If school fees are due tomorrow, the middleman’s instant cash is your best friend.
Who Should Sell Directly to Markets?
- Small-Scale & Niche Producers: If you make organic honey, specialty herbs, or handmade decor, your premium product needs direct customer explanation and branding.
- Producers Near Urban Centers: If you farm in Kiambu and can easily take a van to Nairobi, your transport cost is low, making direct sales very viable.
- Businesses Ready to Scale: If you want to grow beyond subsistence, you need the market intelligence and customer relationships that only direct sales provide.
- The Hustler with a Support System: If you have family who can man a stall while you manage supply, you can make the direct model work.
Making Your Decision: Key Questions to Ask
- What are my exact costs for each option (transport, fees, time) in KES?
- How perishable is my product? Can it survive a longer sales period?
- Do I have the capital to absorb a bad market day or two?
- What is my long-term goal? Quick cash or building a brand?
- Can I start with a middleman and gradually shift to direct sales?
The debate between selling to middlemen vs. selling directly to markets in Kenya has no single winner. It depends on your product, location, capital, and goals. The smartest Kenyan traders don’t stick to one lane. They use middlemen for convenience and cash flow but always carve out a portion of their business for direct sales to build their name and capture higher margins.
Start by honestly assessing your situation using the local costs and tips we’ve outlined. Don’t be afraid to experiment with both models. Your best strategy is the one that puts the most Kenyan shillings in your pocket at the end of the season, with the least amount of unnecessary stress.
Got experience with middlemen or direct markets? Share your story in the comments—your insight could help another hustler make a better choice. For more practical guides, check out our article on navigating county government permits for small traders.
