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Kenya’s retail industry is expected to grow steadily in 2024, despite the challenging economic climate that has forced several firms to announce profit warnings.

Industry experts say the sector experienced heightened market activities in the course of 2023, marked by robust expansion efforts from both local and international retailers, a trend that is expected to persist this year.

Prominent retailers that engaged in aggressive expansion during the year, according to Cytonn Investments research team, include Naivas Supermarket, which opened new stores in Nairobi, Malindi, and Kisii counties, with plans for another outlet in Kakamega.

“QuickMart Supermarket also expanded its footprint, adding stores in Nairobi’s Kileleshwa and Eastlands, as well as in Nyali, Mombasa. Carrefour opened a new outlet in Nairobi’s Eastleigh, aiming to solidify its market dominance,” they indicate.

The entry of new players in the value chain, such as the global retail chain Panda Mart and local retailer Jaza, is expected to be a game-changer as more retailers strive to address gaps in the sector.

Panda Mart, a South African-based company, which operates in more than 12 countries on the continent and other markets globally, has launched its first store at Nairobi’s Garden City Mall and is planning a $7 million (Sh1.14 billion) investment to establish its presence in Kenya.

Jaza, founded by former Naivas Supermarkets Chief Commercial Officer Willy Kimani has introduced a novel retail concept with hard-discounted stores targeting the mass market. Recently, the brand announced the grand opening of two additional stores in Chokaa and Gachie, expanding its presence to a total of six stores.

Jaza shops offer a diverse range of products, including dry foods, personal care items, essential household goods, and various beverages, all affordably tailored to meet the diverse needs of the local customer base.

In addition to its physical stores, Jaza utilises a cutting-edge e-commerce platform, shop.jaza.ke, allowing customers to place orders conveniently from their homes, offices, or businesses.
Consumer needs

Kimani emphasised the brand’s commitment to understanding consumer needs, positioning Jaza as a budget-friendly destination for patrons to secure their everyday essentials. “We are moving away from the supermarkets in shopping malls and offering convenience while serving residential areas,” he said.

Kimani said Jaza represent the brand’s dedication to offering quality products while ensuring accessibility and convenience for valued customers.

Other franchises that have embarked on expansion in Kenya, according to Cytonn Research include: ChicKing, an international fast-food chain which in partnership with M/s Crispy Limited, a local franchise, opened a restaurant outlet located in Mombasa along Nyerere Avenue, the first outlet in Kenya and the East African market.

Also joining the race for the local market was Simbisa Brands, Zimbabwe’s largest fast-food restaurant operator, which runs quick-service restaurants such as Chicken Inn, Pizza Inn, Bakers Inn, and Creamy Inn.

It has opened 25 new outlets in Kenya since 2022, ending up with 275 outlets as at March 2023. Chicken Cottage, a UK fast-food chain also announced a partnership deal in 2022 with Express Kitchen, a subsidiary of AAH Limited to open 50 outlets at Hass Petroleum’s service stations in Kenya, Rwanda, Tanzania and Uganda.

Java House, an international restaurant chain, who also owns 360 Degrees Artisan Pizza, Kukito, and Planet Yogurt food chains, opened a new outlet located at Eastleigh, Nairobi in June 2023.

Java House also plans to open three outlets at Nairobi’s Jomo Kenyatta International Airport, Moi International Airport in Mombasa and in Machakos within the year.