Not-so-merry Christmas for traders as festive season sales fall

Traders wait for customers in Migori on December 25, 2024. [Anne Atieno, Standard]

The Christmas season, once synonymous with booming business and high profits for traders, has taken a different turn this year.

Traders across the country have expressed disappointment, claiming there was little to celebrate as many saw dwindling sales during what is typically the busiest time of year.

In Kitale, Trans Nzoia County, small-scale traders are grappling with the ripple effects of a tough economy, with many lamenting a sharp decline in consumer spending. Fredrick Shatukha, a hawker selling bags, said business has been notably slow compared to previous festive seasons.

“It has been a tough time for us. I can barely sell more than two bags a day,” Shatukha said. He also pointed to a growing disparity between prices and what customers are willing to pay.

A bag priced at Sh2,000 is now being bargained down to as low as Sh1,300. “These kinds of bargains make it impossible to make a profit. It feels like customers are dictating our prices, and we have no choice but to comply to keep our businesses afloat,” Shatukha explained.

Rose Adhiambo, another trader, observed that many of her customers were opting to repair their old bags rather than buy new ones.

“We used to have a steady flow of customers buying new bags during this season. But now, people are going to tailoring shops to patch up their old ones,” she said.

Harsh economy

Adhiambo pointed out that the promises made by the Kenya Kwanza administration to improve the economy have yet to translate into tangible benefits for ordinary citizens.

For Luke Simiyu, a poultry trader, the festive season has been even more challenging, with sales of chicken— a staple for many families during Christmas—plummeting.

“This season is incomparable to previous years. Customers are fewer, and those who come can barely afford to buy the chicken,” Simiyu said.

He noted that although many customers dream of serving chicken as part of their holiday celebrations, the harsh economic realities have made it impossible for most.

“A rooster that usually sells for Sh1,200 is now being bargained down to Sh900, and a hen priced at Sh800 is being negotiated to Sh550. If I sell at those prices, I’ll be operating at a loss,” he lamented.

Customers buy meat at Kisii Municipal market on 24/12/2024. Traders in the market say they are recording low sales as compared to previous years. [Sammy Omingo, Standard]

In Western and Nyanza regions, traders have reported heavy losses after failing to sell goods that they had stocked up in anticipation of strong Christmas sales.

Maurice Opiyo, a broiler trader in Kondele, Kisumu, said that out of the 40 birds he acquired, only 25 were sold.

“In previous years, we would hike prices and our stock would be sold out even before Christmas Day. This year was a disaster,” he said. He added that only his regular customers made purchases.

At Kibuye market, second-hand clothing vendors, who normally experience a surge in sales during the Christmas season, said only a few families bought clothes. “Only children’s clothes registered good sales,” said Josephine Owino, a vendor.

Increased taxes

Mary Salamu, a fruit vendor in Kakamega, said that this year’s Christmas was the worst she had ever experienced.

“I normally make a killing on Christmas Day as people scramble for fruits. But on Wednesday, I only pocketed Sh1,000, whereas in previous years, I would make at least Sh6,000 in a day,” Salamu said.

Despite high foot traffic in the town, she noted that the number of customers did not translate into sales.

John Atoti, a photographer at Muliro Gardens in Kakamega, reported that while many people visited the gardens for relaxation, few hired him for photography services.

“The gardens had a lot of people, but the majority were children who didn’t have money for a photo shoot. I expected to have at least 50 clients, but I only got 25,” Atoti said.

In Mombasa, garment retailers reported lower sales this Christmas compared to the previous year, citing cash flow problems and increased taxes under the Kenya Kwanza government.

Traders at Marikiti, Mwembe Tayari, and Kongowea markets reported poor business, with customers cutting back on spending.

“We haven’t done well this season because most regular customers complained of cash challenges. A few of them bought clothes for children only,” said Joyce Kamau, a businesswoman at Mwembe Tayari.

Entertainment venues also reported modest increases in alcohol sales, though not much higher than the previous year.

“Despite reports of a high number of tourists in the region, most of these hotels practice ‘caged tourism,’ and guests do not come out,” said James Charo, manager at Millionaire Club in Bamburi.

However, not all sectors faced difficulties. Moses Mutume, a kiosk owner on Moi Avenue in Mombasa, said he had sold more soft drinks than last year, especially to visitors.

“Although the usual customers weren’t around, I had the opportunity to sell soft drinks to tourists,” Mutume said.

Kenyans celebrating this year's Christmas at Jomo Kenyatta Public beach (Pirates) in Mombasa County on Wednesday 25th December 2024. [Kelvin Karani, Standard]

At Mamba Village, the situation was more positive. Owner Awiti Bolo reported an increase in visitors this year, particularly foreign tourists from Uganda, Rwanda, and other East African countries.

“The introduction of snakes on the farm has attracted many people. Despite their fear, they enjoy watching them in their dens,” Awiti said.

Pythons for export

He also noted that local tourists were drawn to the crocodiles and their meat, which many find delicious. Awiti encouraged Kenyans to embrace reptile meat, such as snake and crocodile, which are eaten by communities like the Pokomo and Turkana.

“We should start eating python, which is eaten by the Turkana and other communities in East Africa,” he said.

The former Nyali MP appealed to the government to allow people to slaughter pythons and snakes for export to markets where demand is high.

“I want the government to give me a license to start slaughtering pythons for export,” he added.

In contrast, Kericho saw some businesses thrive during the festive season. Benson Magolo, proprietor of Aubergine Restaurant, noted a significant increase in diners compared to the previous holiday season.

“We offered pizzas ranging from Sh700 to Sh1,500 and turkey for Sh3,000, and sales exceeded our expectations,” Magolo said.

The restaurant also hosted a pre-Christmas celebration for orphans from the Samoei Foundation on December 24, in partnership with the Lions Club of Kericho.

Supermarkets also reported strong sales. Kipchimat Supermarket chains experienced heavy customer traffic, leading to the deployment of additional cashiers to manage long queues.

Managing Director Bernard Soi expressed satisfaction with the season’s sales, attributing the success to a well-stocked inventory and efficient service.

The festive season also kept service providers busy.

Jane Agutu, from Karamu Enterprise, a company that provides tents, chairs, and outdoor catering services, said her business was fully booked throughout the holiday period.

As the year ends, it’s clear that the 2023 festive season has been marked by mixed fortunes for Kenyan traders.

While some sectors, particularly tourism and food services, experienced growth, many traders across the country have been left struggling, facing lower sales and tough economic realities.

Report by Nikko Tanui, Benard Lusigi, Martin Ndiema, Willis Oketch and Clinton Ambujo