Trans Nzoia: Kenya’s micro-retail sector has received a major boost following the rollout of a program to build capacity 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.
According to Kenya News Agency, TechnoServe Director of Enterprise Programs in East Africa, Alice Waweru, highlighted the main challenges facing the sector, including limited financial literacy, lack of access to affordable credit, and inefficient business operations. She emphasized that the Smart Duka initiative will significantly transform 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. She noted that the training targets drive innovation, collaboration, and sustainability in the sector.
So far, the Smart Duka program has benefited over 7,000 micro-retailers across Nairobi, Kiambu, Kisumu, and Machakos counties. This initiative 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 remarked.
The enterprises contribute Sh. 26 billion to the economy annually, with significant potential to help 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,” Waweru stated.
Through the initiative, the National Duka Owners Umbrella Association has been established to offer a platform for micro-retailers to converge and exchange ideas. Waweru mentioned that through the association, micro-retailers are set to benefit immensely through peer-to-peer learning and technical support to elevate their ventures.
Some of the initiatives being advanced through the association 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,” Waweru explained.
Additionally, through the association, retailers have been linked to waste recycling companies, allowing them to aggregate waste from their establishments and sell it for 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 encouraged retailers to take advantage of the various programs and join the association, emphasizing the benefits of coming together to leverage other initiatives. Kisumu County Executive Committee Member (CECM) in charge of Trade, Tourism, Industry, and Marketing, Faridah Salim, commended the initiative, noting that some 1,000 micro-retailers in the area are set to benefit significantly from the program. She added that this would enhance efficiency in their operations and affirmed that the county government will continue to partner with TechnoServe to reach more traders.