Kenya Franchising

Kenya has a steadily growing franchising market, with franchises present in practically every branch of the economy. The most successful are in the hospitality sector, clothing and fuel. The growing economy has steadily increased Kenyan’s disposable income, creating a demand for franchise offerings in segments such as restaurants/food & beverage services, clothing, and leisure/recreational activities.

Consumer lifestyle reports in Kenya have covered the increase in consumer expenditures, particularly within areas such as the urban population’s shopping and dining habits. To date, U.S. food franchises that successfully operate in the country include Burger King, Cold Stone Creamery, Domino’s Pizza, KFC, and Subway. Other U.S. franchises present in Kenya are Ashley Furniture, Marriott International, and Re-Max Real Estate, among others.

Many U.S. franchises enter the market by establishing presence near or within major shopping malls around the country. The country’s evolving lifestyle trends have resulted in an increase of malls and recreational facilities opening in Nairobi as well as in other leading cities including: Eldoret, Kisumu, Machakos, Mombasa, Nakuru, and Nyeri. This is a key indicator to consider for companies examining various locations across Kenya.

As the franchising sector continues to develop in Kenya, there are great opportunities to be explored. In addition to the rise in consumer spending previously noted, other positive economic factors include:

1. Kenya has the largest GDP in the Eastern & Central Africa, and Nairobi serves as a hub for many international companies.
2. The country averages 6.0% GDP growth which is driven by a resilient services sector, favorable agribusiness output, positive investor confidence, and a stable macroeconomic environment.
3. Kenya’s GDP is projected to continue to rise, underpinned by government investment, private consumption, a pick-up in industrial activity and a strong performance in the services sector.
4. Kenya’s population is relatively young and is becoming more urbanized and brand conscious.
5. The population has a high level of technology literacy, especially among the youth, presenting new sales and customer engagement channel opportunities for companies.
    

For more information on opportunities for your franchise, please Commercial Assistant Judy.Magondu@trade.gov at the U.S. Commercial Service in Kenya.

For more information on doing business in Kenya, start with the Country Commercial Guide for Kenya.