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Date: 2016-08-12

E-commerce in Kenya

With a population of 45 million, Kenya has a well defined B2B and B2C market.  The economy is growing at an annual rate of 5-6 percent.

Western-made products are viewed more favorably than those made in China. U.S. exports to Kenya topped those from China by about 40 percent in 2015, which is part of what Kenyan trade experts see as a shift in favor of the West with high value potential in the future. Popular sites include, Jumia, Cheki, Rupu, and OLX.

Global marketplaces such as Amazon and Alibaba are becoming more popular. Ebay is there, too.

B2B e-commerce has a large services component. Leading the way are business process outsourcing, Internet marketing, information security, and enterprise resource planning. B2C services include music, games, and online banking, mainly personal banking rather than electronic payments.

Younger consumers favor wireless technology, and even city buses in Nairobi have Wifi to keep high school and college students happy.  Social media is popular, with a significant Facebook and Twitter presence.

Not fully expanded yet

There are two issues that are slowing progress in the rapid expansion of e-commerce. The first is that, despite strong economic growth, Kenya remains a poor county.  Marketers are targeting businesses and middle class and wealthy consumers in big cities, mainly Nairobi. Second, credit cards are not popular, with most Kenyans preferring to pay cash. This is likely to change as more e-commerce options generate more online payment options.  Alipay and PayPal are moving to stepping up efforts to make their solutions better known and more attractive.

With its large, youthful population, you should definitely consider Kenya deserves as you expand your business strategy to East Africa.


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