By O’Brien Kimani
Kenya’s online commerce is expected to double in the next five years driven by increased uptake of Smartphones.
Jumia Country Manager Sam Chappatte says the growth will further be fueled by faster broadband and less costly data. Jumia has partnered with mobile phone based lender Branch International to offer loans to entrepreneurs.
Kenya ranks among the top five countries in Africa behind leaders South Africa and second placed Nigeria in online trade.
This growth is majorly driven by the high Smartphones penetration, high speed broadband and low cost of internet.
Data from the Communications Authority of Kenya indicates that the value of e-commerce in Kenya stands nearly at 10 billion shillings and with the expanding smart-phones market this figure could triple.
Most Kenyans who participate in e-commerce buy telecom products accounting for 45 percent of the transactions, tourism service accounts for 38 percent, while services and retail goods contribute to 10 and 7 percent respectively.
Chappate says the current size of e-commerce is very small compared to the market potential.
He says the government should target to bring down further the cost of internet in order to woo more customers into the online trade platform.