Kenyan supermarket chain Tumaini adds two more stores to its network, taking it 12 stores. In January, the chain sold a majority stake to private equity company Adenia Partners through a special purpose vehicle, Sokoni Retail Kenya.
Tumaini was established in 2006. It operates a chain of 10 supermarkets in Kenya, eight of which are situated in neighbourhood estates in Nairobi, and the remaining stores in Kisumu. Sokoni Retail Kenya is investing $2m in the two new stores, focusing on major road arteries out of Nairobi. Its new Eastern bypass store will occupy 2,300m² while its new Kahawa West site will occupy 1,400m². Both will offer fresh food, meat and bakery counters as well as non-grocery sections such as electronics.
Facing a growing threat from international retailers including Carrefour, Shoprite, Game (Massmart) and Choppies (which acquired the Ukwala chain in 2015), smaller Kenyan chains are being forced to adapt. Tumaini has joined Quickmatt and Cleanshelf – both Nairobi neighbourhood supermarket chains targeting middle class Kenyan consumers – by engaging South African fresh food specialists Professional Vision Group (PVG). PVG works with all the major South African supermarket chains to improve supply chain management.
Trendtype believes that Tumaini is specifically trying to expand in Kenya while Botswanan chain Choppies struggles. Choppies has not filed its financial results for the past financial year and has warned that income will drop. With exposure in markets across Southern Africa, staff pay issues in South Africa and an ugly legal battle in Zimbabwe (now settled), Choppies has effectively paused its growth programme in Kenya. Choppies has 18 outlets in Kenya, but had planned 20-25 stores by early 2018 and as many as 40 stores across East Africa by the end of 2018.
