Kenya sees increased demand for E-commerce amid COVID-19

The e-commerce sector in Kenya has seen a significant surge in demand amid the COVID-19 crisis, as more Kenyans turn to online shopping to meet their essential needs. E-commerce platform Gobeba has witnessed a tripling of orders, reflecting the growing preference for online shopping over traditional retail stores. In an interview with CNBC Africa, Gobeba CEO Peter Ndang'ui highlighted the shift towards e-commerce and remote working as key trends in the industry amidst the pandemic. Ndang'ui emphasized the importance of essential e-commerce, which includes groceries, cooking gas, pharmaceuticals, and health essentials like sanitizers. These essential goods have experienced remarkable growth in demand compared to retail e-commerce. The surge in orders has translated into a substantial increase in revenue for Gobeba, with gross merchandise value growing three times since the onset of the COVID-19 outbreak in Kenya. While the e-commerce industry has witnessed unprecedented growth, Ndang'ui admitted that not all players in the value chain were adequately prepared for the sudden surge in demand. Supply chain disruptions, shortages in essential products, and logistical challenges have posed significant obstacles for e-commerce businesses. Approximately 20% of daily orders on Gobeba's platform remain unfulfilled due to these challenges. The shift to remote working has also presented challenges for the e-commerce sector, with increased pressure on bandwidth leading to system downtimes and rising costs. Additionally, the lack of coordinated enforcement of essential services guidelines by authorities has further complicated operations for e-commerce businesses. Ndang'ui emphasized the need for emergency funding to support startups and tech companies facing working capital shortages during this crisis. He urged capital owners, banks, venture capitalists, and equity investors to recognize the opportunity for innovative solutions that could emerge from the current challenges. Ndang'ui stressed that the COVID-19 pandemic could serve as a catalyst for groundbreaking innovations in the e-commerce sector, paving the way for mass adoption of technology-driven solutions. As the e-commerce sector in Kenya continues to adapt to the evolving market dynamics shaped by the COVID-19 crisis, industry players are exploring strategic adjustments to capitalize on the surge in online shopping. Ndang'ui highlighted the importance of collective efforts to leverage this pivotal moment in history as an opportunity for transformative growth and innovation in the e-commerce industry.