Investors jostle for Kenya’s e-commerce space as smartphone penetration grows

NAIROBI, KENYA: Kenya’s online retail space is getting competitive with investors capitalizing on the penetration of internet enabled phones to reach out to consumers.

According to recent study, high adoption of smartphone pushed Kenya’s internet penetration ahead of its peers in Africa,

Kenya is among the leaders in share of internet traffic coming from Mobile (overtaking Nigeria in 2017), at 83 per cent.

 “Increasing number of smartphone in the country and internet pentration is a catalyst to e-commerce business,” says Yussuf Omaar, Managing Director at OE.CO.KE

“Kenya has moved in the direction of e-commerce, more and more people prefer convenience over brick and mortar stores. That’s why companies are laying every ground work to ensure both our customers and vendors enjoy stress free services,” he notes.

He says e-commerce sites such as the OE.CO.KE, Jumia, Kilimall, Africa Sokoni among others are riding on the developments to bridge the gap that has been created by the hectic urban work schedules for the young and old people across the country with disposable income to spend.

“We will bring the order to your doorstep as you concentrate on your work,” says Omaar at the launch of OE.CO.KE.

The e-retailer that first launched in Kenya in August 2017 did not take up ecommerce immediately as it focused on laying the foundation to ensure its merchants are paid within 30 minutes after the products are delivered to the prospective customers. It also sought to enhance its offerings to more than 5000 products across all electronics categories and many more targeting rural and urban markets. 

The website will allow customers choose from a wide assortment of products and have their orders delivered to them anywhere in the country where they will have the option to pay on delivery or via mobile money transfer.

According to Oliver Otieno, a tech consultant based in Nairobi, the unveiling of the platform will kick off intense competition in the online business.

This is not only beneficial to the country’s online trading whose growth has not kept up with internet connectivity and formal retailing but also to online shoppers who stand to win big from price wars.

Although the formal retail penetration in Kenya is estimated at 30 per cent while internet connectivity at 60 per cent, the fraction of Kenyans buying products online has stuck at 0.5 per cent.