2018, Blog, english, Kenya

Ecommerce in Kenya

With the provision of basic technology infrastructure and market research opportunities to help retailers, brands and other companies use the power of the Internet to connect with customers, Kenya is also developing an extensive online business. The experience already gained in the western world certainly plays a major role here. In addition, there is less data protection awareness and less consumer protection.


The government through the Ministry of ICT commissioned the Communications Authority of Kenya and the Kenyan Statistical Office to investigate online commerce in the country. Their results, presented in a joint report, showed that about 27% of sellers sell their products online. The same report found that most companies, about 32% of sellers, were unable to sell their products over the Internet because the offers were not suitable. This may also have to do with the fact that, unlike in Germany, cold chains cannot be guaranteed, for example, when fresh products are involved. This is also not possible for services that are not based on digital work.

State and private companies, support online business

Much money is being made available for the development of mobile ICT start-ups and the financing of new mobile application innovations to support and grow e-commerce companies. Companies like the Safaricom
Foundation offer start-ups and support for e-commerce companies. The purchase and the payment can be done easily with the smartphone.

People quickly get used to online shopping and overcome their dependence on traditional shopping techniques in Kenya. Cost and time savings can be seen. Long distances can be saved. Delivery is taken care of by service providers. Long negotiations are no longer necessary. Plus the convenience of being able to order from the couch.

Online shops like https://www.jumia.co.ke/ have days and times when they sell certain products at discounted prices while creating jobs and helping to generate tax revenue.

There are three large online shops in Kenya: jumia, kilimall and olx. But they are not the only suppliers, supermarkets such as Chandarana Food also have an online retail department where buyers can use their mobile app to shop and have their purchases delivered to their homes at no additional cost. They are all widely used. Local shops are forced to adapt. In principle, this is facilitated and made possible by mobile
payment providers such as M-pesa, T-Cash or AirTel-Money. In large cities such as Nairobi, which is struggling with bestial traffic, online commerce can also make ecological sense in order to minimize the volume of traffic through each individual customer.

While the physical retail giants are struggling in business, online shopping is growing and attracting more and more people into the digital space. The savings potential is usually the driving force behind people’s interest to look around online.

By skilfully analyzing online purchasing behavior, stores are constantly changing their offers and orienting themselves to customers’ purchasing habits. Offline, like online. Kenya is on the move.

 

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