This archive report was first published on 9 September 2019.
Published on September 9, 2019, Jumia Kenya's managing director Sam Chappatte revealed that the company will be offering a 50% discount on commissions for locally manufactured goods.
Speaking during an e-commerce forum hosted by the Kenya Association of Manufacturers (KAM) in partnership with Jumia, Chappatte emphasized the importance of supporting Kenyan manufacturers. 'Jumia offers 50% discount on commission of sales through for locally manufactured products,' he said. 'Jumia gives an incentive to Kenyan manufacturers and this is due to the fast-growing sales channel available online.'
The forum aimed to highlight opportunities for small and medium-sized enterprises (SMEs) to access global markets, gain new customers, and adapt their business models to align with changing technologies.
According to KAM, Kenya has approximately 7.9 million SMEs, with about 60% operating in the service sector. Unfortunately, around 400,000 SMEs fail every year.
Jumia Kenya, which operates online brands such as Jumia Deals, Jumia Jobs, Jumia Food, Jumia Travel, and Jumia House, has established itself as the leading e-commerce firm in Kenya and Africa. The company recorded 550 million visits across Africa in 2017 and has seen the number of products on its brands grow to 5 million from just 50,000 in 2012.
Over 15,000 companies are currently selling through Jumia in Kenya, with Nairobi-based economist Elias Muthee noting that the online retail space in Kenya is largely unexploited. 'The online retail space in Kenya is largely unexploited, and the company is expected to grow its revenue base due to its constant evolution and product innovations,' he said.
