• EAPI Retail Forum will take place on the event’s second day on 17 and 18 April 2024 in Nairobi.
  • Rising consumer demand has led to the development of strong local retail brands.
  • Key speakers at the EAPI Retail Forum say a growing middle class and the rise of digital connectivity are boosting the retail sector.

Retail is emerging among the most vibrant sectors of the East African economy. Kenya’s capital city, Nairobi, has become an important retail market in its own right and a stepping stone into the rest of the country and wider East Africa.

Nairobi is a rising regional shopping destination, the headquarters to many regional retail and food and beverage (F&B) businesses, and a Launchpad for retail concepts in other East African areas.

Digitally savvy middle-class Kenyans are demanding local brand experiences that align with what they see regionally, continental, and internationally and are boosting the retail sector in Nairobi.

Speaking ahead of the upcoming 11th annual East Africa Property Investment Summit Retail Forum (EAPI Retail Forum) thought leaders say that a growing middle class and the rise of digital connectivity are boosting the retail sector in Nairobi.

The engagements will take place on the event’s second day on 17 and 18 April 2024 in Nairobi.

Rising consumer demand has led to the development of strong local retail brands and the emergence of international brands—all seeking to capitalise on this growing customer base.

As a key property industry sector, retail is crucial to the growth of a prosperous and thriving real estate market.

For this reason, retail and F&B will take centre stage at the #EAPI2024 Retail Forum, hosted in Partnership with Village Market, Knight Frank and CBRE Excellerate.

The unique platform for East Africa’s retail sector to meet and connect with the region’s leading landlords, brokers, financiers, advisory teams and more will play a part in shaping Africa’s most exciting retail market and exploring regional and global trends.

The Signature Mall in Kenya. The East African region remains open to FDI in the retail sector since the population and purchasing power are growing. [Photo/ Signature Mall]
Ryan Pape, Country Manager at CBRE Excellerate Kenya, notes that Nairobi’s infrastructural improvements and private sector investment have opened the playing field to local and international retailers and F&B chains.

“Nairobi’s infrastructural improvements and private sector investment has opened up the playing field to both local and international retailers and F&B chains. We see increased public and private investment into roads, rail, shopping malls, convenience malls, cold chains and distribution centres, to name just a few areas,” said Pape

Hooman Ehsani, Director of New Developments, Greenhills Investment Limited, which built the Village Market Shopping & Recreation Complex in Nairobi and took it through five expansions, including Tribe Hotel, believes that well-positioned brands with the right product mix would do well to open a store in Nairobi.

“The Nairobi F&B scene has become considerably more vibrant and appealing over the last couple of years, with the success of some newer entrants catalysing more creativity and energy and encouraging more entrepreneurs to venture into the space. Similarly, on the retail side, we’ve seen a significant spike in interest as business owners aim to meet a growing appetite, especially for locally produced fashion, home furnishings and beauty services,” said Ehsani.

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Highlights of EAPI Retail Forum 2024 

He added that Nairobi is now achieving a comfortable balance between retail space in the right locations and better-quality retailers with the right products for the market. He also noted renewed confidence within the business community and increased optimism around stability and growth opportunities.

Wambui Mbarire, CEO of RETRAK Kenya, reports that the biggest recent change in the market is the increased diversity of retail partners to rent the newly developed spaces.

“Whereas historically, there were one or two potential tenants with the capacity to rent prime retail real estate, the growth of the sector has seen more options available to landlords.”

Mbarire notes that Nairobi, with its diversity and cosmopolitan nature, is a great place to test and tweak brands for launch into other Kenyan and East African towns and cities.

“The urbanisation that we are seeing countrywide is also providing retail property players with additional locations outside of the traditional Nairobi, Mombasa and Kisumu axis. Good examples of this include Nakuru, Eldoret, Naivasha as well as Kajiado, Kitengela, Kiambu, Limuru, Thika and Ngong.”

Mark Dunford, CEO at Knight Frank Kenya, states, “Nairobi’s retail, food, and beverage sector is experiencing a dynamic growth surge, driven by the strategic expansion of local and international retailers.

This growth results from the city’s increasing urbanisation and consumer spending, which private equity investments have supported.

The burgeoning retail landscape offers lucrative opportunities for both investors and retail brands. As Nairobi’s status grows into a prominent hub, it offers investment prospects for stakeholders in the retail property sector and capital investors.

Quickmart outlet in Thime. Photo: Quickmart

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Increased allure for international retail entities

This is largely attributed to a boost in investor confidence, fuelled by government-led infrastructure projects and the growing allure of international retail entities.

In today’s market, establishing a presence in Nairobi is exceptionally attractive for retail brands. The city’s upgraded infrastructure, combined with the robust growth of local and multinational retailers, cements its position as one of the premier retail markets in Africa.

Murray Anderson-Ogle, GM of Marketing and Commercial at API Events, adds, “Kenya is a key market with many successful local homegrown retail brands, including those operating in the vibrant F&B arena, and it has the clear potential to be an African retail real estate powerhouse.”

All agree that the surging retail market requires a platform to connect with its real estate stakeholders, and the EAPI Retail Forum answers this need. #EAPI2024 Retail Forum is exclusively in-person at Radisson Blu, Upper Hill, Nairobi.

“EAPI has been at the leading edge of the conversation around property trends in the region, and investment in retail and F&B operations has become a significant part of the investor interest,” says Ehsani.

Pape notes that understanding this market’s changing needs that will be provided at the EAPI Retail Forum benefits landowners, developers, investors, and property professionals alike.

“This is the natural progression of the market, and establishing the EAPI Retail Forum now will ensure participation in one of the most vibrant sectors of the East African economy,” added Mbarire.

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