The Growing Retail Industry in Kenya: A Key Contributor to Economic Growth and Digital Transformation

Despite current economic challenges, the retail industry in Kenya is thriving and playing a significant role in the country’s economy. According to the Kenya National Bureau of Statistics (KNBS), wholesale and retail trade is a major contributor to the country’s GDP and job creation, with nearly 90 percent of working Kenyans engaged in the sector.

The digital economy in Kenya is also on the rise, with the country being one of the fastest-growing e-commerce markets in Africa. This growth has led to an increased need for convenience and seamless shopping experiences, prompting retailers to adopt digitized trade practices. Carrefour Kenya, for example, has embraced e-commerce through its application, offering customers a convenient way to shop and earn loyalty points.

The retail sector in Kenya is also keeping up with international trends by implementing new technologies and innovations. With the wholesale and retail trade being the third-largest contributor to private-sector employment, the industry provides opportunities for both unskilled and skilled populations, employing over nine million people in 2022.

Despite the majority of groceries and consumer goods still being purchased through informal retail channels, the retail industry in Kenya is undergoing a transformation. Modern retail is expected to increase market share by five percent by 2030, driven by shifting customer behavior and a growing digital ecosystem.

The optimistic outlook of Kenya’s modern retail sector presents opportunities for international retailers and foreign investors to access local markets and establish export channels for Kenyan products. For example, Carrefour has collaborated with countries like Qatar, Bahrain, UAE, and Egypt to export a variety of locally sourced products, enhancing the local agricultural business and boosting the country’s highest GDP-earning sector.

With the increase in modern retail activities and the rise of e-commerce, the retail industry in Kenya will play a crucial role in achieving the government’s development agenda, providing formal employment opportunities, and driving digital innovations and technology. Christophe Orcet, the Regional Director of Carrefour East Africa, is optimistic about the future of the retail industry in Kenya and its potential to drive economic growth and development.