Kenya Retail Wars Escalate to E-Commerce as Kapu Launches New Shop

• Former Jumia Kenya staff launched a new e-commerce platform dubbed Kapu to reduce the high cost of living
• Kapu majorly targets residents in urban areas and has over 1,500 agent collection centres across Nairobi
• Kapu Chief Executive Officer Sam Chappatte noted the platform will give customers an opportunity to save on cost

Kenya’s retail wars have stretched to e-commerce as upcoming online shops race for market share.

The recent to join the race is Kapu, an online retail shop allowing customers to shop and save on weekly grocery baskets.

Cost of living

Kapu was launched on Monday, December 5, by former Jumia Kenya executives, with a mission to bring down the cost of living in Kenya and the entire African continent.

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The new online shop allows customers to buy products in the quantity they can be able to afford, including quality fresh produce from Kenyan farms at wholesale prices.

Kapu’s main source of goods and products is local farmers, manufactures and the model intends to reduce food waste.

Customers can access goods at lower prices if they place the order as a group (“pamoja”), via a local Kapu agent and soon directly on WhatsApp.

“We think it’s unfair that consumers in Kenya spend 40% of their income on food, when Americans spend 6%. This is a huge blocker to social mobility. Our goal at Kapu is to build the most relevant model of e-commerce for the majority of urban consumers in Africa.

“By working with existing community groups including local entrepreneurs, we believe we can play a part in reducing the costs of goods, and unlocking opportunities for millions of people,” said Kapu CEO Sam Chappatte.

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Kapu has over 1,500 Agent Collection Centres in areas like Eastlands, Kasarani, Kawangware, South B, Kibra, Embakasi, Githurai and Kiambu.

The e-commerce retailer plans to open up access to its services across Nairobi by March 2023.

Support small business owners

Kapu agents include mama mbogas, salons, and individuals such as stay-at-home-mums and students, who are able to earn an extra income.

“Once a customer tries Kapu, our data shows that they quickly adopt Kapu for their weekly grocery shopping needs. It works because our model is relevant – we sell the products people want, affordably, and work with trusted community partners.

“In our first year of operations, we will have saved consumers KSh 40 million, be on track to deliver 1 million orders annually, working towards profitability.” added Chappatte.

Customers can access the service by dialling *789*8# to register and get KSh 50 cash back on their first order.

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Twiga foods launch

Kapu’s launch followed a recent unveiling of a distribution centre with similar objectives at Tatu city.

President William Ruto presided over the launch of the multimillion-dollar Twiga Foods Distribution Centre.

The facility will enable adequate food distribution in the country and the regional market, bridging food security problems.

Source: TUKO.co.ke