Kenya’s leading internet retailer Jumia Kenya has announced a 50% off commission for locally produced products.
During an e-commerce forum hosted by the Kenya Association of Manufacturers (KAM) in collaboration with Jumia, Jumia Kenya’s managing director Sam Chappatte disclosed this.
“Jumia offers 50 per cent discount on the 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 sought to highlight possibilities for SMEs to access worldwide markets, gain fresh clients, and show the significance of reinventing their company models to align with evolving technologies.
Mr. Chappatte also disclosed that at the moment Jumia plans to open hubs outside Nairobi where small and medium-sized enterprises can sell their products and services. Kenya currently has around 7.9 million small and medium-sized enterprises, according to KAM. Approximately 60% of these companies are in the service industry. Unfortunately, 400,000 small and medium-sized enterprises fail every year.
Jumia Kenya, which operates internet products like Jumia Deals, Jumia Jobs, Jumia Food, Jumia Travel, and Jumia House, has created itself as the leading e-commerce company not only in Kenya but also in Africa. In 2017, the internet distributor, also operating in 22 other African nations, recorded 550 million African visits. From just 50,000 recorded in 2012, the number of products on its brands increased to 5 million.
In Kenya, Jumia is presently selling over 15,000 businesses. It can not be said that this client preference for Jumia is so far-fetched, suggests economist Elias Muthee, based in Nairobi. “The internet retail space in Kenya is mainly untapped and owing to its continual evolution and product innovations, the firm is anticipated to develop its income base,” he claims.
Andrew Mutuma, DHL Express Managing Director, echoes this. “E-commerce is an opportunity for African continent financial growth and interconnectivity is a significant component in this,” he claims.