Kenya’s Formalized Retail Sector Emerges Second in Africa

Kenya’s retail sector is the second most formalized sector in Africa according to a report by Oxford Business Group which is a global consultancy. This comes as a result of most Kenyans deciding to venture into a real estate in terms of large mall constructions especially in major urban centers in the country.

According to the consultancy, the formal retail sector in Kenya accounts between 30 and 40 percent of the market with South Africa leading with 60 percent but Kenya emerges as the fastest growing in terms of consumer spending on the continent.

Nairobi in the recent past has been voted as the most legible place where one can carry out retail businesses as it offers the best retail market. According to another consultant Knight Frank, many business people and retailers are giving out retail spaces to the market and this has been enhanced by the influx of investors both locally and internationally. At one point, Nairobi was voted the best city in Africa in terms of developments and investments.

Nairobi is also set to be the queen of Africa and a hot cake to run for as the would be the largest mall ever both in East and Central Africa set to open its doors by the end of the year. The mall which will be known as Two Rivers is being constructed in Runda suburbs. At the moment the largest mall is Garden City located along Thika Road.

Many other malls are still coming up within the city and some in Kiambu which has been seen as the next hot place to do business after Nairobi and business analysts say that soon South Africa will be behind Kenya in terms of retail businesses.

This is set to be enhanced by the recent initiative by the government to light up the streets in what has been duped as Mwangaza Mitaani aimed at providing street lights in all major towns in Kenya in what has been seen by economic analysts as the next step in ensuring that Kenya realizes a 24-hour economy.

Article by Juma Fred.