The best time to take your business abroad

In the last few years, we have seen many Kenyan corporations expanding into other African countries, especially in East Africa, with the likes of UAP, KCB, Equity Bank, Uchumi and Nakumatt going regional.

In the retail industry, Nakumatt has made profits from its overseas expansion, but Uchumi has not. Over the last five years, Uchumi’s outlets in Uganda and Tanzania made up only 4.75 per cent of its operations, yet accounted for over 25 per cent of operating costs, draining the parent operation. This has prompted the retailer to close these loss-making operations. If Uchumi is closing shop, did it make the right choice going abroad?