Kenya’s e-commerce penetration poised for double-digit growth on rural smartphone push - player
The country’s current smartphone penetration is estimated at 70 to 75 per cent, with the rapidly digitising population helping unlock new demand for e-commerce services.
Kenya’s online retail sector is poised for double-digit growth in the coming two years, with mobile technology at the heart of the transformation.
The country’s current smartphone penetration is estimated at 70 to 75 per cent, with the rapidly digitising population helping unlock new demand for e-commerce services, particularly in underserved rural regions.
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According to Jumia’s East Africa regional CEO Vinod Goel, the combination of mobile, internet, and mobile money penetration is fuelling a notable shift in shopping habits, nudging the country's e-commerce penetration upwards.
While speaking to The Eastleigh Voice, Vinod highlighted that the current rate of e-commerce adoption hovers at around 3-4 per cent.
Reports put the country’s e-commerce penetration at about 46.7 per cent early this year, and it is projected to grow to 53.6 per cent by the end of the year, according to the Competition Authority of Kenya.
Ideally, the double-digit growth in e-trade adoption is expected to push the penetration rate beyond 54 per cent by next year.
Vinod attributes this optimistic forecast to the expansion in rural markets, which currently account for over 50 per cent of e-trade activity.
He highlights Jumia as a case in point, noting that 70 per cent of its growth is coming from outside the capital city, Nairobi.
“Two-thirds of our growth is actually coming from upcountry, and that is very encouraging because now we can tap a huge population which is underserved and served with overpriced items,” Vinod said.
To accelerate the momentum towards the double-digit growth in e-trade, Jumia has announced a strategic partnership with the pay-and-go digital financing platform Watu to deepen smartphone access in the country.
Through a flexible ‘lipa mdogo mdogo’ model, the two firms aim to make high-end smartphones such as Samsung more affordable and accessible to consumers, mostly in rural areas, a key demographic driving the future of online shopping in Kenya.
The initiative is expected to significantly expand smartphone circulation beyond the existing user base, at about 75 per cent.
On his part, Watu Country Manager Erick Massawe argues that the missing link in unlocking Kenya’s full e-commerce potential is no longer mobile phone penetration, which is already over 100 per cent, but rather smartphone penetration, which stands at around 75 per cent.
“People may own phones, but if they are not smartphones, they can’t access digital marketplaces,” he noted.
“To get to double-digit growth in e-commerce, we have to push smartphone adoption much further.”
Nevertheless, both firms believe that boosting smartphone ownership in rural Kenya will not only increase e-commerce participation but also unlock broader digital inclusion.
The collaboration starts with Jumia’s agents facilitating the first phase of financing, with plans to roll out direct online access to consumers in the coming months.
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