Why retailers shy away from local produce

The phenomenal growth of towns in counties has seen retail outlets open new branches in these high-potential markets.

And with supermarkets attracting plenty of foot traffic, owners of small and medium enterprises in the counties were excited about new avenues to showcase their products. However, getting shelf space has not easy.

For instance, in Kisii, chain retailers stock bananas from outside the county despite being based in a region best known for this fruit. Kisii is also a key producer of coffee, but again, farmers’ local produce is yet to feature on shelves.

Internationally certified

In two of the chain stores visited, Business Beat found that wooden spoons, which require the simplest of technologies to produce, are supplied from Nairobi, while cutting boards are imported from China.

Enock Nyaibari, the proprietor of Homemark Dairy in Kisii County, said efforts to get retailers in the region to stock his products have been futile. His company makes yoghurt and packages fresh milk.

“I have been to Nairobi to the outlets’ head offices in an effort to have them stock our products and make them available to local consumers,” he said. “However, one of them turned me away outright, while another said they have no space for new suppliers.”

Another outlet, Mr Nyaibari added, said because they are internationally certified, they can only stock local products that have been subjected to similar certification standards.

“One told me to write a profile about my company, but I think this is too demanding for my SME,” he said.

And for the retailers that have agreed to make space for his products, the conditions attached, Nyaibari feels, are too stringent for his small enterprise.

“Is it fair for these retail outlets to shun our local products on the pretext that they do not meet set standards?”

Steve Juma, Nakumatt’s Kisii branch manager, said all procurement is done at the head office and he has no control over what the outlet sells. He admitted however, that several producers from the region had approached the supermarket, expressing the desire to supply goods.

“We direct them to the head office and what transpires there we have no idea as they never come back to tell us of any progress made,” he said.

Mr Juma said his company has an open policy where any supplier can provide goods for sale. However, some entrepreneurs are unwilling to follow the procedures required to get their products on the shelves.

Kisii County Executive for Trade and Industry Moiro Omari added that he has approached supermarkets to explore the possibility of them highlighting local produce.

“We have made attempts to have retail outlets set aside shelves for local products, and though it has not been easy, we are making progress.”

Mark of quality

Renson Ongaki, the branch manager of the Kenya Industrial Estates in Kisii, attributed the absence of locally produced goods in supermarkets to a lack of certification from the Kenya Bureau of Standards (Kebs).

“Getting that mark of quality from the authority has been an issue, and a majority of producers do not want to take the initiative and go through the whole process.”

He advised county leaders to tell residents about public and private firms that incubate small businesses, finance them and help them meet certification standards.

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