Former Naivas Supermarkets Chief Commercial Officer, Willy Kimani launched a new retail concept of hard discounted stores targeting the mass market in what is aimed at helping households cope with the tough economic times.
Jaza outlet will be the first branch to be strategically located at Buruburu Estate to serve the expansive residential area of Eastlands, Nairobi.
The new outlet will stock a wide range of commodities including dry foods, personal care products, and essential household items, as well as a variety of beverages affordably tailored for the region’s diverse customer base.
Speaking when opening the new retail outlet, Jaza Founder Willy Kimani said: “I saw an opportunity in the general trade market and came up with a concept set to offer consumers everyday affordable pricing considering the current macroeconomic situation. As a business, this branch opening marks the kick-off of the retailer’s expansion plans.”
“We are set to open doors for 5 more branches ahead of the Christmas festivities; two outlets in Kayole Estate, one outlet in Githurai 44, Gachie, Chokaa Embakasi area, and more outlets in 2024. Jaza Launch is a very strategic and calculated business move supported by market research and data to ensure that wherever the business sets up shop, there is a ready market. We are moving away from the supermarkets in shopping malls and offering convenience while serving residential areas,” concluded Willy Kimani.
The market for fast-moving consumer goods (FMCG) has been growing rapidly with the focus being on food and non-alcoholic beverages, personal care products, and household items. This sub-sector is characterized by intense competition, with players competing on price and product innovation.
The sector is heavily dependent on imports, which explains the current spike in prices owing to the depreciation of the Shilling and disruption of the global supply chain due to the Russia-Ukraine war.
However, there are efforts by the government to increase local production of most of these items, especially agricultural produce. The reduction on imports will help the country make vital savings on foreign exchange reserves, which have been dwindling.
The Government initiatives include supporting local manufacturers and increasing access to finance for small and medium-sized enterprises.
The retail industry is expected to continue growing in the coming years, driven by a young population and a growing middle class.
The festive season carries a lot of promise for retailers and wholesale outlets. As the shopping frenzy sets in, retail outlets are aligning their strategies and employing diverse tactics to tap into the country’s extensive consumer market.
Over the past month, all of Carrefour, Naivas, and Quickmart have developed campaigns aimed at tapping into the growing local consumer base through targeted campaigns. Even with its extensive network of stores, Naivas continues to expand across the country. It has recently opened its 101st store in Kakamega and made clear its intentions to tap into more untapped markets across the country. On its part, Carrefour has opened its third store in Mombasa and taken its total stores in the country to 22 as of December 2023.
A vast hole has been left by the recent collapse of previously dominant outlets including Tuskys, Nakumatt, and Uchumi. The Jaza Launch will be a strategic move to capitalize on the spaces left by the collapsed retailers while also aiming to provide alternatives and improved convenience for customers in Nairobi and across the country.
The local retail scene has provided a mixed bag of fortunes for international retailers. While retail outlets such as Carrefour have enjoyed relative stability, the local market has been a deathbed for top continental retail chains including Massmart, Shoprite and Game; all of South Africa.
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Great move