By Antony Mutunga
After a testy pandemic period, the economy has reopened as the world gradually returns normalcy. Months after reopening, the Kenyan economy has continued to record positive growth in different sectors, with retail seeing an increase in demand for prime retail shops.
According to Knight Frank’s Kenya market update H2 2021 report, there was a slight increase in prime rents from Sh454.60 ($4) per square foot (sq. ft) per month in to Sh465.96 ($4.10) per sq. ft per month and an increase in retailer activity in acquiring new units. There has also been an increase in foot and vehicular traffic to retail centres as the roll out of vaccines continues.
Much of the increased traffic was attributed to the holiday season in Q4 2021 where malls benefitted the most from consumers looking to take advantage of various offers. The property consultancy firm stated that malls which were strategically located and more-established showed more resilience throughout the lockdown periods, partly because of being anchored by recognised popular supermarkets. Additionally, performing supermarkets continued to take up space occupied by struggling retailers, further attracting customers to the various retail outlets.
For example, Naivas Supermarket, Chandarana Food Plus, Carrefour and Quickmart opened up new outlets in the period. Naivas, the largest local supermarket chain with 78 branches, opened five outlets in Juja Mall, Nyayo Estate, Mega Mall Kisumu, Aga Khan Walk CBD and Oasis Mall while Chandarana Food Plus opened 3 additional branches at Golden Life Mall in Nakuru City, Buffalo Mall in Naivasha and the newly opened Highlands Mall in Eldoret Town, taking its total number to 23. Carrefour and Quickmart, on the other hand, opened 5 and 6 outlets respectively in 2021.
Despite the overall improvement in the retail sector, Knight Frank also noted that other than supermarkets, others such as restaurants have been expanding looking to tap into Kenya’s coffee and fast-food market. For instance, ArtCaffe Group opened an additional 4 outlets in Nairobi, setting the stage for competition with rival brands such as Java and Kentucky Fried Chicken (KFC) that also expanded its local footprint by the establishment of its first branch at the Kenyan Coast.
Restaurants and entertainment joints, however, continue to face challenges because of the necessity to adhere to Covid-19 protocols and guidelines over the period. (
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