Kenya Poised To Lead East Africa’s E-commerce Revolution

East Africa’s digital landscape is expanding, and it’s impossible not to notice Kenya leading the charge. The nation has embraced mobile technology, digital financial services, and e-commerce at a pace that is enviable by global benchmarks. Today, Kenya proudly stands as the third-largest e-commerce market in Africa, but I believe we’re only scratching the surface of e-commerce potential to drive economic growth.

With an internet penetration rate of 40.8 percent and over 22.7 million users online, Kenya has a young, tech-savvy population that continues to grow. Every day, more Kenyans are joining the digital economy, expanding the potential for e-commerce to reach every corner of the country. According to the Competition Authority of Kenya, e-commerce penetration is projected to rise to 53.6 percent by 2025, driven by the expansion of internet connectivity, robust logistics, and the adoption of fintech solutions. These developments form the bedrock for a scalable, inclusive e-commerce ecosystem.

As the East Africa Regional Manager at Jumia, one of the most rewarding aspects of my role has been witnessing how e-commerce empowers Kenya’s small and medium enterprises (SMEs). Through Jumia, hundreds of local entrepreneurs now have access to a vast customer base beyond their physical locations, helping them increase sales, cut operating costs, and establish a brand in the digital marketplace. Notably, Jumia’s model, focused on affordability and accessibility, has leveled the playing field, bringing online shopping within reach for both urban and peri-urban customers alike.

The numbers speak for themselves: Kenya’s e-commerce market is projected to reach $900 million in 2024, with the user base expected to grow to 12.26 million times(X). Yet, e-commerce still represents a small fraction of the total retail market. To fully unlock its potential, Kenya must address several obstacles that hold back the digital economy’s expansion.

First, the cost of the internet remains a significant barrier, especially for lower-income consumers and small businesses trying to balance costs and sales. The high internet costs in Kenya, among the highest in Sub-Saharan Africa, limit access to digital platforms for many. To mitigate this, the government could implement incentives and a tax regime designed to support the digital economy. For example, tax grants and concessions could help startups cover the initial costs associated with digital operations, enabling them to invest in technology and talent. This move would ultimately create jobs, foster growth, and drive economic transformation.

Infrastructure also requires continuous investment, particularly in last-mile delivery networks, to support e-commerce expansion beyond major cities. Extending e-commerce’s reach will ensure that all Kenyans, regardless of location, benefit from the digital economy.

Lastly, consumer trust remains a hurdle for e-commerce. Joint efforts to address fraud prevention and boost security will encourage more Kenyans to explore online shopping confidently.

Looking ahead, the e-commerce sector is evolving beyond traditional online retail. Trends like social commerce—where transactions occur directly on social media—and artificial intelligence to improve customer experiences are reshaping the landscape.

The Kenyan government’s commitment to digital transformation is evident through the Bottom-Up Economic Transformation Agenda (BETA), which prioritizes digitalization as a cornerstone of economic growth. This forward-thinking policy approach, coupled with our commitment as private sector players, will lay the groundwork for a thriving digital economy.

Kenya is on the cusp of becoming a powerhouse in the e-commerce space. The shift in consumer habits is reshaping the economy, bringing job opportunities, expanding access to goods, and enabling more Kenyans to participate in the digital world. The journey ahead requires all stakeholders—government, private sector, and consumers—to work together. It’s a shared responsibility, but by working in unison, we can turn Kenya’s digital economy vision into reality.

This article was written by, Vinod Goel, East Africa Regional Manager, Jumia.