According to financial advisory firm StratLink this comes as a result of a rise in household income over the last five years.
“Despite the present headwinds, we still believe the retail segment of Kenya’s economy offers great promise for long-term investors,” StratLink analysts said.
StratLink also highlighted the important of repaying suppliers saying failure to do so signifies a lapse corporate governance standards.
Supermarket such as Massmart of South Africa, Walmart of the US and French-owned Carrefour are a few examples of retailers that have been attracted to Kenya because of its impressive retail sector.
Cabinet Secretary for Ministry of Industry, Trade and Cooperatives, Adan Mohamed, highlighted how Nakumatt’s current financial predicament has prompted talks a regulations in the sector.
“Lessons learnt offer potential room for some kind of regulations to make sure that such high number of small people will not be going to suffer because of problems that one large player faces,” Mr Mohamed said.
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