19 October 2015

Kenya: Kilimall Signs Deal to Use Over 600 Posta Branches

Postal Corporation of Kenya and e-commerce firm KiliMall signed a deal to enable online shoppers use over 600 post offices countrywide as collection points and order placement branches.

Through the arrangement, KiliMall is looking to face off foreign online retailers such as Jumia and OLX Kenya by penetrating deeper into the rural using Posta's massive infrastructure.

ONLINE BUSINESS

Online business has gained much ground over the last two years with foreign e-commerce companies setting up shop in Kenya.

Communications Authority's data reveals that Kenya's online business value in 2014 was Sh4.3 billion with 63.2 per cent of businesses still in the start-up stage, 73.7 per cent attracting less than 100,000 unique visitors to their websites and recording revenues below Sh1 million per month.

READ MORE: Why online shopping is the future of retail

"E-Commerce is the next big thing and fast growing in Kenya. Therefore, we are excited to partner with Posta Kenya to deliver innovative logistics solutions that will enable consumers across the country enjoy the convenience and benefits of e-commerce," said KiliMall's logistics manager Chris Nyaga.

E-commerce in Kenya continues to contribute immensely to the Kenyan economy as internet users continue to increase.

Kenya recorded 36.1 internet subscriptions at the end of June up from 34.8 million in the previous quarter, according to the recent Communication Authority statistics.

The deal is also expected to help revitalise the postal corporation by taking advantage of changing shopping trends as Kenyans take to the internet for cheaper deals.

READ MORE: Regulator's new rules a shot in the arm for Posta

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