Kenya’s retail spending dips with inflation

Kenya’s retail spending is likely to be lower than that of 2016. (Photo: Courtesy)

Kenya’s retail spending is likely to be lower than that of 2016 pegged on struggling big retailers and high food inflation, Proctor & Gamble Managing Director Vivek Sunder has said.

Speaking to The Standard from the company offices in Nairobi, Mr Sunder said the increased cost of food for the better part of this year squeezed consumers’ pockets, forcing them to cut on expenditure to balance with other needs.

“I suspect that 2017 figures will not be as rosy as 2016. I don’t know the figures yet but I suspect there will be pretty sharp slowdown in retail spending this year,” he said.

Food inflation

“Food inflation, which reflected in total inflation, meant they were going to spend less since their money is basically getting stretched across fewer things.”

This will be in contrast to the P&G report released early this year showing that Kenya’s cumulative retail spending hit Sh1.8 trillion in 2016 as the sector expanded by 13 per cent.

Additionally, Sunder said, the problems facing prior leading retailers Uchumi and Nakumatt that has seen them close some branches and reduce stocks may affect the overall retail spending. Due to this, upcoming retail stores are finding it hard to receive supplies on credit.

P&G is a multinational manufacturer of product ranges including family, personal and household care products.