This archive report was first published on 21 May 2020.
As the world grapples with the Covid-19 pandemic, Kenya's online sales market is experiencing a significant surge. According to recent statistics, global online sales are expected to reach seven trillion dollars this year, with a significant boost attributed to 'stay at home' orders.
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Kenya, with 22 million internet users, is an African leader in online sales. The government is hoping that the expansion of internet infrastructure in the country will drive growth further.
Local players such as JamboPay are also capitalizing on the trend, offering a platform that connects manufacturers, distributors, and producers with buyers. JamboPay's market is offering household products, and its joining fee for SME vendors and farmers has been zero-rated to enable local traders to transition to e-commerce inexpensively.
Kenya's online market is dominated by Jumia and Safaricom-owned Masoko, but new players are entering the scene, angling for a piece of the pie. However, authorities need to address the rising cases of fraud, which is denting the future of online transactions.
Online sales in Kenya eclipsed Ksh 1.6 trillion in the last quarter of 2019, with a penetration rate of 30 per cent. The government's directive for people to adopt an online solution to contain the deadly respiratory disease is expected to boost performance significantly.
