This archive report was first published on 10 May 2021.
As the world recovers from the COVID-19 pandemic, Kenya's e-commerce sector is experiencing a significant boost in online retail sales. According to a recent report by the United Nations Conference on Trade and Development (UNCTAD), published on May 10, 2021, the country's share of online retail sales rose to 19% in 2020, up from 16% previously.
Globally, online retail sales grew sharply, with Korea reporting the highest share at 25.9% in 2020, up from 20.8% the year before. The report notes that global e-commerce sales jumped to $26.7 trillion in 2019, a four percent increase from 2018.
Shamika Sirimanne, UNCTAD's Director of Technology and Logistics, emphasized the importance of having such information as countries rebuild their economies in the wake of the pandemic.
Priscilla Muhiu, Glovo Kenya General Manager, attributed the surge in e-commerce to consumers in Nairobi, Mombasa, Nakuru, Eldoret, and Kisumu, who drove the increase in online shopping last year. She noted that while cash remains the dominant payment instrument, there are signs that this will eventually change.
Muhiu also highlighted that groceries top orders among many consumers, with Glovo Kenya tripling deliveries in this segment last year. However, she expressed concerns that digital tax might increase the cost of doing business and discourage many online shoppers.
The US continued to dominate the overall e-commerce market, ahead of Japan and China, with business-to-consumer e-commerce sales estimated at $4.9 trillion in 2019, up 11% over 2018. Cross-border business-to-consumer e-commerce amounted to $440 billion in 2019, a nine percent increase over 2018.
