Why Kenyans are running away from Chicken Inn

Simbisa Brands Ltd  has cited a tough economic environment characterised by high taxes and a rising cost of living for keeping customers away from its outlets. [File, Standard]

Simbisa Brands Ltd, the owner of popular fast-food chains Chicken Inn and Pizza Inn in Kenya, has cited a tough economic environment characterised by high taxes and a rising cost of living for keeping customers away from its outlets.

In its annual report for the year ended June 30, 2025, published this week and reviewed by The Standard, the Zimbabwean fast-food giant said the situation was exacerbated by political unrest that hit its key outlets in major cities.

"The protests in the first half of the year particularly impacted the central business districts, leading to property damage and a reduction in consumer footfall. We had to close some of our outlets," the company stated.

This perfect storm of challenges directly impacted customer traffic for its Kenya business.

"Customer counts declined by six per cent year-on-year, with household budgets impacted by price hikes and reduced disposable income," the company says.

Despite the severe headwinds that kept customers at home, the Kenya unit demonstrated remarkable resilience, reporting a 12 per cent revenue growth in US dollar terms.

This growth was not from more customers, but from those Kenyan consumers who could still afford to spend, driven by a sharp 20 per cent increase in net average spend per customer and a stronger Kenyan shilling.

The company's strategic shift to delivery services was a major success, insulating it from the drop in walk-in traffic.

Delivery sales surged 35 per cent as consumers embraced ordering in, now accounting for 17 per cent of the Kenyan unit's total revenue.

In a move signalling confidence in the market's long-term prospects, Simbisa is embarking on an expansion drive rather than retrenching.

Simbisa Kenya plans to open "a net of 11 new stores" and refurbish 11 others in the 2026 financial year.

The company is betting big on the continued growth of its digital channels. "The market is targeting to increase delivery contribution to 30 per cent of total turnover in the medium to long term," the company said, outlining a strategy that includes "medium-priced bundles and promotions, strengthened partnerships with delivery aggregators, expanded coverage and intensified digital marketing campaigns."

In a green initiative, the Kenya operations are leading the group's sustainability charge, having increased its fleet of electric motorbikes by a massive 125 per cent in the past year to reduce emissions and fuel consumption.

The firm, which already operates 252 company-owned outlets in Kenya, says it will continue to navigate the difficult economic landscape by adapting its model to the evolving spending habits of Kenyan consumers.

Kenyans are ending 2025 significantly worse off than a year ago, with the cost of a basket of essential goods from food to transport having risen sharply, according to official data.