NAIROBI, Kenya – The cost of doing business in Kenya remains a significant threat to the growth of the country’s retail industry, with stakeholders now urging the government to step in and create a more conducive operating environment.
Speaking at the inaugural Retail Summit, the Retail Trade Association of Kenya (RETRAK) highlighted mounting concerns over high taxation and operational costs, warning that without urgent intervention, the industry could suffer severe setbacks.
RETRAK CEO Wambui Mbarire pointed to excessive county-level levies as a major challenge, particularly fees imposed on businesses transporting goods across different jurisdictions.
She criticized what she termed as “exorbitant charges” on both merchandise and branded delivery vehicles, which she argued are stifling business operations.
“Our members are struggling with inconsistent and prohibitive levies imposed by various county governments. There is an urgent need for harmonization to prevent unnecessary financial strain on retailers,” Mbarire said.
The two-day summit, themed “Growing Sustainable Retail”, is focusing on strategies to enhance the resilience of the retail industry.
Key discussions revolve around digital transformation, emerging market trends, customer engagement, and business expansion.
With more consumers shifting to online shopping, retailers are exploring ways to integrate digitization into their operations.
Mbarire emphasized that leveraging technology will be crucial in driving the sector forward.
The government, which has identified retail as a pillar of its Vision 2030 development agenda, acknowledges the sector’s contribution to economic growth.
Retail trade currently accounts for approximately 60% of the country’s economy, underscoring its importance in job creation and wealth distribution.
