KENYA – Tumaini Self Service Limited, an emerging Kenyan retailer, is set to open to open two outlets in the country’s capital, Nairobi as part of its expansion strategy.
The new branches will raise the number of Tumaini outlets in the country to 12 of which 8 are located within the capital.
According to a report by Business Daily, the retailer has invested around US$2 million in the expansion programme that comes at a time when the country’s retail sector has seen major home-grown players go through a rough financial patch.
“Our aim is to be in all the major arteries of Nairobi. We are spending around Sh200 million (US$2m) to set up the two stores,” said a company source yesterday.
The retailer’s new store in along the Eastern bypass will occupy a 25,000 square feet space and employ about 120 people while its additional branch in Kahawa West will occupy 15000 square feet and offer about 100 employment opportunities.
The outlets will retail packed foods, fresh vegetables, fast-moving goods such beverages as well as furniture and electronics.
The retailer’s expansion plan comes just a few months after the company sold a majority stake to Sokoni Retail Kenya, a special purchase vehicle owned by Mauritius-based private equity (PE) firm Adenia Partners.
Tumaini said its new controlling shareholder has provided new capital that will be used to expand the business, signalling positive developments especially in homegrown retailers.
“Sokoni has come on board, as a strategic investor, to assist Tumaini achieve its goal of becoming a leading retailer in Kenya.
Tumaini will begin an expansion plan to meet growing demand for retail goods and services in convenient locations in Nairobi’s estates and neighbourhoods,” the retailer said.
The Tumaini buyout adds to the recent acquisition of Ukwala Supermarkets by Botswana based retailer, Choppies in 2015, which has since pursued an aggressive expansion drive that has seen it increase its store count.
In a bid to retain a competitive edge amid stiff competition from international retailers, Tumaini in conjunction with Quickmatt and Cleanshelf have also engaged South African fresh food specialists Professional Vision Group (PVG).
Tim Faull, PVG’s co-founder earlier this year noted that the retailers had each sought the company’s services as they worked towards setting up more modern fresh foods segments ahead of opening new stores.
This has subsequently seen Cleanshelf and Quickmart launch their latest stores in the country featuring fresh foods departments, unlike their other conventional branches, stock a wide variety of farm produce, meat and fast moving processed foods.