Carrefour Borrows Ksh 3 Billion To Expand Kenyan Business

Carrefour owners have borrowed up to 3 billion shillings in loan from a South African bank as the retailer plans to expand business in Kenya.

According to the lender, Standard Group South Africa, Carrefour owners’ Dubai-based conglomerate Majid Al Futtaim, has taken the loan to increase their retail presence in Kenya.

“Provided Majid Al Futtaim –Dubai’s leading shopping mall, retail, and leisure group– with 3 billion shillings loan to expand its retail presence in Kenya,” Standard Bank group said in an annual report.

Carrefour first stepped foot in Kenya in 2016 and its business has expanded to a significant level especially after the downfall of retail giant Nakumatt Holdings.

The retailer first launched its operations in The Hub in Karen then later on expanded to seven stores with branches in Two Rivers Mall, Thika Road Mall, The Junction, and Sarit Centre.

Following its expansion, Carrefour increased its assets base to 7.1 billion shillings in the year ended December 2019 up from 4.5 billion shillings in 2018 which represents a 57.2 percent growth.

During the same period, Carrefour recorded a 2.7 percent rise in revenue from 17.7 billion shillings to 18.2 billion shillings.

Its success can be attributed to its customer loyalty programs as well as the wide array of discounts that attract more customers.

Carrefour currently operates over 250 hypermarkets, supermarkets, and online stores in 15 countries across the region, with plans to extend into 38 countries in the Middle East, Central Asia, Africa, and Russia.

With the new loan from Standard bank, Carrefour is likely to get a boost and expand a great deal as it seeks to affirm its presence in the Kenyan market.

However, the retailer still has to deal with strong competitors like Tuskys, Naivas, and others who have established themselves in the Kenyan market for a while.

READ: UAP Holdings Registered A Loss Of Ksh 3.4 Billion For 2019