Uchumi Supermarkets has adopted a weekly SME and farmers business model of leasing out space from 2,500 to 10,000 shillings at its Langata outlet, a move that is likely to give the retail sector a new awakening.
The retailer is targeting farmers who sell fresh produce alongside small and medium enterprises (SMEs) to be able to generate income. Every Saturday and Sunday, SMEs have been flooding the branch with great products at affordable prices.
“The weekly SME Market is designed specifically for the interest of small and medium enterprises, allowing both exhibitors and visitors alike to forge new business opportunities,” Uchumi’s CEO Mohamed Mohamed said.
Mohamed says the retailer will serve as a platform for networking and product showcasing, giving existing SME’s a higher market presence in today’s competitive economy. He says what a Kenyan SME needs is a helping hand that will walk with them.
“Uchumi Supermarkets Plc plans to allocate shelf space for the SME products and incubate them towards growth and compliance,” Mohamed added. The move by the retailer is the first to happen in the country as it seeks a strong comeback.
Kenya’s economy relies heavily on the SME sector to thrive. The sector currently employs about 86 percent of the population and contributes about 45.5 percent to Kenya’s gross domestic product (GDP). The sector, however, has so many challenges.
Stats from the Kenya National Bureau of Statistics (KNBS) showed that in 5 years 2016, a total of 2.2 million SMEs shut down. This translates to 450,000 annually, 30,000 monthly, and 1,000 daily. These are worrying numbers for such an important sector.
With the coming of COVID-19, the SME sector is facing greater challenges than ever before. Innovative ways to help them out are needed. What Uchumi Supermarket is doing should be emulated to secure the future of SMEs in Kenya.
READ: Uchumi Supermarket Back With A Niche For SMEs