Kenya’s micro-retail sector has received a major boost following the rollout of a program to capacity build and strengthen operations in the sector.
Dubbed Smart Duka, the initiative by TechnoServe in partnership with the Moody’s Foundation is designed to empower micro-retailers (duka owners) by providing them with essential business skills, financial access, and market linkages to improve their profitability and sustainability.
Technoserve Director of Enterprise Programs in East Africa Alice Waweru said limited financial literacy, lack of access to affordable credit, and inefficient business operations were the main challenges facing the sector, adding that the Smart Duka initiative will go a long way transforming the sector.
Speaking in Kisumu during the training for the seventh cohort, Waweru underscored the critical role of micro-retail shops, commonly known as dukas, in Kenya’s economy adding that the training targets drive innovation, collaboration, and sustainability in the sector.
So far, the Smart Duka program, she said has benefited over 7,000 micro-retailers across Nairobi, Kiambu, Kisumu, and Machakos counties.
This, she added, has generated over 14,000 jobs and facilitated access to more than Sh. 60 million in working capital for small businesses.
“Smart Duka helps retailers, micro-retailers, and small entrepreneurs who are the majority enterprises driving the economy,” she said.
The enterprises, she added, contribute Sh. 26 billion to the economy annually with a huge potential of helping address the country’s unemployment problem.
“Every entrepreneur we train has the potential of creating numerous job opportunities. Therefore, this training is very critical to accelerate job creation in the country,” she said.
Through the initiative, the National Duka Owners Umbrella Association, she said, has been born to offer a platform for the micro-retailers to converge and exchange ideas.
Waweru said through the association, micro-retailers were set to benefit immensely through peer-to-peer learning and technical support to take their ventures to the next level.
Some of the initiatives being advanced through the association, she added, include working with Information and Communication Technology (ICT) companies to develop applications and solutions for the micro retailers to enhance efficiency in their operations.
“We are in talks with a number of these companies to see if they can come up with applications to design user-friendly technology driven solutions to support the sector. For example, what applications can they use in the morning or evenings when the traffic to the shops is high to ensure that they not only serve customers but also maintain proper records for sales and stocks,” she said.
She added that through the association, the retailers have been linked to waste recycling companies where they aggregate waste from their establishments and sell at a fee.
“By collecting carton boxes, bottle tops, plastic bottles, and wrapping paper at their shops, they are able to make an extra coin from garbage recycling firms, thus boosting their profit margins,” she added.
Waweru asked the retailers to take advantage of the various programs and join the association, adding that by coming together they were set to benefit from other initiatives.
Kisumu County Executive Committee Member (CECM) in charge of Trade, Tourism, Industry, and Marketing Faridah Salim lauded the initiative, saying some 1, 000 micro-retailers in the area were set to benefit immensely from the program.
This, she added, would enhance efficiency in their operations adding that the county government will continue to partner with TechnoServe to reach more traders.
By Chris Mahandara
