KEPSA, on March 20, 2025, hosted a benchmarking tour at Jumia Kenya, bringing together 30 entrepreneurs from diverse sectors. The visit offered them a firsthand look at the Jumia e-commerce platform and the opportunities it presents for entrepreneurs. A key highlight of the day was a tour of the warehouse facility, where participants observed the end-to-end e-commerce process, including goods inbound, inventory management, order processing, and the outbound dispatch of goods to various destinations across the country.

E-commerce is rapidly gaining traction in Africa and across the world. Kenya ranks as the third-largest e-commerce market in Africa, a position driven by increasing internet penetration, a tech-savvy youth population, and a mobile adoption rate of 40.8%. With over 22.7 million online users, the country continues to witness significant growth in digital commerce. Improved infrastructure and widespread mobile adoption have further fuelled this expansion. 

According to the World Bank’s 2018 Enterprise Survey, inadequate market access remains a key challenge for small businesses. Limited access to both local and international markets is often due to a lack of marketing skills, poor distribution channels, insufficient market information, and financial constraints that hinder business expansion. 

E-commerce presents a transformative opportunity for Micro, Small, and Medium Enterprises (MSMEs) by enabling them to compete, grow, and increase income while creating employment. The World Development Report 2020: Trading for Development highlights how MSME participation in e-commerce and digital platforms—particularly in food services, accommodation, and other sectors—facilitates market access, lowers entry barriers, and reduces operational costs. This ultimately enhances productivity and profitability. However, due to the high initial cost of developing standalone e-commerce platforms, many small businesses opt to sell through established third-party marketplaces such as Jumia. 

The 5th Benchmarking Tour aimed to explore the vast opportunities available through e-commerce. During the session, Mr. Vinod Goel, Jumia CEO East Africa, emphasized three key pillars of e-commerce success. First, he highlighted the importance of seamless information exchange, made possible through websites and mobile applications that facilitate smooth interactions between buyers and sellers. Second, he underscored the role of efficient logistics and delivery services, which rely on well-established systems to ensure timely product deliveries. Lastly, he stressed the significance of secure cashless payments, which enhance transaction efficiency through reliable digital payment solutions. His insights provided SMEs with a clearer understanding of how these elements come together to create a thriving e-commerce ecosystem. He also encouraged SMEs to embrace e-commerce to increase visibility, expand their reach, and streamline their operations. 

Ms. Mary Ngechu, KEPSA Board Director incharge of SMEs and Startups and Managing Director of Lineplast Ltd, urged entrepreneurs to optimize Jumia’s platform to boost sales and brand visibility. She emphasized that Jumia provides marketing and logistics support, resources that many SMEs may struggle to afford independently. Additionally, she encouraged businesses to leverage the Jiinue Growth Program, which connects SMEs to affordable financing opportunities essential for scaling their operations. She reiterated KEPSA’s unwavering commitment to empowering and elevating SMEs. 

This tour provided a practical understanding of best practices in e-commerce operations and logistics. It also offered a behind-the-scenes look into Jumia’s operations, illustrating how the company navigates challenges and adapts to evolving market trends. Through knowledge-sharing and collaboration with industry leaders like Jumia, the benchmarking tour reaffirmed KEPSA’s commitment to empowering SMEs. By providing practical tools and industry insights, KEPSA continues to strengthen market linkages, fostering SME growth.