This archive report was first published on 2 July 2020.
Published on July 2, 2020, a report by Reuters revealed that South African retailer TFG is set to exit Kenya due to dollar-based rentals and increased import duties.
TFG Group Chief Executive Anthony Thunström stated that the company has given notice to exit Kenya, citing the unviability of their operations in the country. He also mentioned that the Kenyan government has increased import duties over the last six months, in some cases doubling them.
TFG has four stores in Kenya, and their exit comes amid reports that Shoprite Holdings, one of South Africa's biggest supermarkets, was sued for Sh520 million in lost rent. Shoprite had announced the closure of its Karen branch in April, citing reduced footfall.
Kenyan retailers operating in major malls across the country have raised concerns over the 'silence' of their landlords on rental relief measures amid the Covid-19 pandemic. Some commercial property developers have vowed not to develop malls in the near future, with Centum Investment stating that it will not undertake the development of any commercial rental property in the next five years.
