The rising consumer demand has spurred the growth of strong local retail brands and the emergence of international brands – all aiming to benefit from this expanding customer base.
Retail is emerging as one of the most dynamic sectors in the East African economy. Nairobi, Kenya’s capital city, has not only become a significant retail market in its own right but also a gateway to the rest of the country and broader East Africa. Nairobi is ascending as a regional shopping hub, housing many regional retail and food and beverage (F&B) businesses, and serving as a launchpad for retail concepts to expand into other East African regions.
According to experts participating in the 11th annual East Africa Property Investment (EAPI) Summit Retail Forum, urbanization, a growing middle class, and the rise of digital connectivity are propelling the retail sector in Nairobi. The event is scheduled for April 17 and 18, 2024, in Nairobi, Kenya. Local brand experiences are on the rise.
Digitally savvy middle-class Kenyans are demanding local brand experiences that resonate with regional, continental, and international trends, driving growth in Nairobi’s retail sector. As a vital sector of the property industry, retail plays a crucial role in the growth of a flourishing real estate market. Hence, retail and F&B will be in the spotlight at the #EAPI2024 Retail Forum, held in partnership with Village Market, Knight Frank, and CBRE Excellerate.
The event serves as a unique platform for East Africa’s retail sector to engage with the region’s leading landlords, brokers, financiers, advisory teams, and more, shaping Africa’s dynamic retail market and exploring regional and global trends. A levelled playing field for both local and international retailers. Ryan Pape, country manager at CBRE Excellerate Kenya, highlights that Nairobi’s infrastructural advancements and private sector investments have opened opportunities for both local and international retailers and F&B chains.
Nairobi is achieving a balance between retail spaces in strategic locations and high-quality retailers offering products that cater to the market. The business community is gaining confidence, with increased optimism surrounding stability and growth opportunities. Wambui Mbarire, CEO at Retrak Kenya, notes the increased diversity of retail partners renting newly developed spaces, offering landlords more options than in the past.
Nairobi’s diverse and cosmopolitan nature makes it an excellent testing ground for brands before expanding into other Kenyan and East African cities. Mark Dunford, CEO at Knight Frank Kenya, affirms that Nairobi’s retail, food, and beverage sector are experiencing dynamic growth driven by the strategic expansion of local and international retailers, supported by urbanization and consumer spending.
Establishing a presence in Nairobi is highly appealing for retail brands in today’s market, given the city’s upgraded infrastructure and the robust growth of both local and multinational retailers, solidifying its position as a premier retail market in Africa. Kenya is a pivotal market with successful local retail brands, particularly in the vibrant F&B sector, positioning it as a potential powerhouse in African retail real estate.
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