Furniture market in Kenya

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New Market Entry
Kenya Furniture Business

Why Venture into EA?
East African Market

US$1.2 billionValue of the East African furniture market

US$298 million
worth of trade in the region

The Furniture Market in East Africa
Since growth is driven (and bound) by growing urban
populations and purchasing power, growth prospects
are favourable, and Kenya, Ethiopia, Tanzania and
Uganda are likely to remain the dominant furniture
markets.
Among these economies, Kenya is likely to take the lion’s
share of the market even though its urban population is
smaller than that of Ethiopia and Tanzania

• According to World Bank Group, furniture market in Kenya
stood at about US$496 million (Sh52 billion) in sales in 2013,
with a growth rate of 10 per cent over the past five years, with
similar growth expected in the coming years.
• Imports are taking an increasingly large portion of the Kenyan
market, growing at a rate of 24% between 2009 and 2013,
while exports are growing more slowly at 10 per cent, without
a significant push for the development of the local industry, an
increasing proportion of consumption in these markets will be
met by imports
Kenya Furniture Market Overview

Why Kenya?
Kenya’s location and
economic growth
make it a prime
selection for
investment
opportunities in Africa.
Kenya has a higher
proportion of expats
than other African
countries.
Kenya has recently been
voted by expats as one of
the African countries with
the best weather all year
through hence a perfect
setting for outdoor
furniture.
Political instability and the global
financial crisis negatively
impacted Kenya’s GDP growth
rates in 2009, while in 2010,
growth rates stabilized. Rising
GDP per capita indicates growing
consumer income.
Regional financial
and transportation
hub, and one of
East Africa’s largest
economies.
Furniture imports stand at
US$66 million (Sh6.9
billion) and constitute 13
percent of the total
market.

• Kenya is strategically positioned as the “gateway to east
Africa”.
• Rising GDP per capita indicate increasing consumer incomes.
• Nielsen’s research indicates that Trendy Aspirants and
Progressive Affluents account for 34 percent of Kenya vs. 28
percent across Africa.
• These segments are educated and modern but prefer to buy
the same brand.
• The other 66 percent of consumers are driven more by
affordability. Companies must leverage functional parameters
like price, distribution and emotional parameters like family,
confidence about the future and even music.
• Innovation and execution activities centered on these key
learnings will enable success.
Entry Opportunity‘The rise of the middle
class with high
disposable incomes, as
well as the improved
infrastructure, which
lowered transport costs
for businesses, were key
in promoting retail
growth’.

More expensive and value
adding products may fare
better with the larger base of
affluent consumers in Kenya
than in other African nations –
Nielsen Research Kenya

Kenya Retail Overview
The Kenyan economy continued to grow, backed by increasing
foreign investment and stable political leadership, as well as a
growing focus on the development of youth entrepreneurship.
Backed by a strong GDP forecast of 6.5% for 2015, as well as
inflation remaining at a single-digit level of 5%, retailing grew
in 2015.

Growing International Interest Boosts
Retail Growth In Kenya
Over the last two years of the review period there was an
increase in international brands setting up shop to tap into the
growing middle-income segment and maximise the retailing
opportunity that Kenya presents.
Increased international interest in the Kenyan market, through
direct investment by players, such as Walmart, Game, Carrefour
and Botswana’s Choppies, played a key role in promoting
consumer confidence and spending.

NICHE
MARKET
Kenya’s location and
economic growth make
it a prime selection for
investment
opportunities in Africa.
Kenya has the
opportunity to expand
its furniture industry to
meet growing local and
regional demand.
The Kenyan forestry sector is
unable to meet local demand
for timber and the country is
a net importer of sawn
timber from the region

The furniture market in Kenya stood
approximately at US$496 million in
sales in 2013, with a Compound
Annual Growth Rate (CAGR) of 10%
over the past five years.
Furniture imports stand at US$66
million and constitute 13% of the
total market. Imports are taking an
increasingly large portion of the
Kenyan market, growing at a CAGR of
24% between 2009-2013
Exports are growing more slowly at a
10% CAGR. Without a significant push
for the development of the local
industry, an increasing proportion of
consumption in these markets will be
met by imports.
Furniture Market Numbers

Useful pointers
when comparing
Kenya to the
African average.
• More Kenyans than the African
average visit modern trade, making
distribution more accessible for new
firms.
• Kenyans are more brand loyal than
other African countries studied. This
can present challenges for new brands.
• Similar to other African countries
studied, affordability remains a key
driver for Kenyans.

Luxury Hotel - Nairobi
Outdoor furniture

Demand for furniture in Africa is
rising due to growing populations,
urbanization, and purchasing
power.

Market predicted to develop in the future
Africa accounts for about 2.2 percent of the global
consumption of furniture and about 2.8 percent of the
global furniture trade, with net imports at US$2.5 billion.
Demand is being met both through local production and
imports: between 2009 and 2015, furniture
production in Africa and the Middle East grew by 15%

• East African
economies furniture
consumption
annually.
US$268million)
Value of East Africa furniture Imports
US$1.2
Billion
22%

Challenges facing the furniture industry in
Kenya
• Constrained input supply
• Limited labour skills
• Poor production facilities
• Limited access to markets
• Limited engagement and
collaboration between different
stakeholders across the value
chain, both within and between
the formal sector and Jua Kali
entities
Foreign lady buying furniture from a local roadside carpenter

• Imported furniture wear out fast since the material
used is not manufactured with the Kenyan weather in
mind.
• Many end up getting duped into buying cheap
furniture, marketed as expensive imported high quality.
Risk Factors for imports

CompetitionMajority of the local furniture companies make
furniture from local materials or import .
• Mimosa furniture
• Odds & Ends
• Furniture Palace
• Sunnydaze
• FurnitureRama
• Victoria Courts
• Antarc
• Fairdeal furniture
• Ramboo Colourcane
• Rosewood furniture
• Island Furiture
• Jua Kali Carpenters (roadside vendors)
Dealers in furniture across the country import furniture from
China, Indonesia, Italy etc.

Local Pricing
Standard-sized imported office
table costs over Ksh60,000
(600USD) local manufacturers
sell Ksh45,000 (450USD)

Key Information Areas
Target Group:
Mid - high end consumers
Residential and commercial consumers
› Expat market
› Local affluents
› Luxury hotels, lodges, camps and restaurants.
Resources
› Ministry of Industrialization and Enterprise Development,
› KNBS
› Nielsen Research

THANKS!
Any questions?
T: @vivienwamalwa
vivien@mydigitalarena.com
vivienwmlw@gmail.com
M: +45 50 31 05 26

Furniture market in Kenya

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Furniture market in Kenya