Uchumi Supermarket on Jomo Kenyatta Street in Kisumu, which is among many retail outlets that have opened shop in the lakeside town. PHOTO | JACOB OWITI
Kisumu town has seen an unprecedented growth of supermarkets dealing in fast moving goods over the past year.
The outlets are targeting the informal settlements unlike in the past when they were concentrated in the central business district.
The town, which had a reputation for being hostile to investments, has changed owing to the resurgence of these large retail chain stores.
Big names such as Nakumatt, which has dominated the market for a long time, now face stiff competition from new entrants.
Establishment of a number of shopping malls and expanding road networks have also spurred the rapid growth of retail stores, raising the town’s profile as an attractive investment hub.
Uchumi opened an outlet at the new West End mall and is banking on a strategy of lower prices in the leafy suburbs of the town.
Regional manager Elizabeth Kanja said the outlet has shown signs of positive growth in its first three months of operations.
Ms Kanja said the investment is driven by the adequate supply of fresh produce such as pineapples and sweet potatoes.
“As our trucks deliver goods to our branch in Kisumu, we are able to transport this produce back to Nairobi, providing farmers the market they need to excel,” she said.
Ms Kanja said Uchumi expects to expand into other commercially viable centres beyond Kisumu such as Kakamega, among others.
“Fair prices, a national pricing strategy and the specialty business model taking up fresh produce from small and medium-sized businesses is our strength in the region.”
Naivas is yet to open a branch in the town to compete with the likes of Tuskys, which is popular among middle-class shoppers. The outlet is banking on the huge foot traffic on the Kisumu-Kakamega road to boost its business.
Tumaini supermarket opened a branch in CBD following rapid growth of its Kondele outlet.
Tumaini chairman Elijah Okello said high quality goods and services at reasonable prices are key in attracting customers.
“We commit only to provide the people of Kisumu the best at all times. The county is a land of opportunities. We, therefore, intend to have another branch coming up in a few months to give us an opportunity to serve even better,” he said.
The retail outlet plans to open another store in Nyalenda, an informal settlement in the town.
Western Matt, another entrant, has also completed construction of an outlet it expects to stock by the end of November. The Sh30 million investment at Kibuye Market targets market traders.
Manager Shanti Koshirani said the decision to work in Kisumu was driven by the need to expand in western Kenya.
“We are also looking at reaping the benefits of a stable population growth in the region which factored a lot in our prospects of Nyanza as a destination for trade,” he said.
Nakumatt’s western Kenya manager Chrispine Gitonga said the supermarket chain is ready to take on the competition.
He said the new entrants were a sign of good economic tidings in a region investors had initially shied away from over political unrest, especially after the 2007/2008 post-election violence.
“We are in discussions with investors towards setting up a mall in the residential estates on the outskirts of the town to start a third branch in Kisumu,” he said.
Mr Gitonga said the new entrants have borrowed lessons from the supermarket to benchmark the quality of services they intend to offer.
“We are driving an agenda of continuous improvement since we are treated as the father of supermarkets in Kenya and particularly Nyanza,” he said.
Mr Gitonga added that devolution had opened a new window for investment in the counties. “We are also looking at having outlets in all major towns in the 47 counties under the initiative that seeks to move the business to the people’s doorsteps.”
Ukwala has also opened an out-of-town branch at Nyamasaria, about five kilometres from the city centre on the newly opened Kisumu bypass.
“We are employing diversity of services, including the fast food component which is the in thing of today’s supermarket business,” manager Hitesh Dhanani said.
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