Partnerships in food industry to feed economy

The Kenyan food sector has experienced exponential growth in recent years, drawing investments from an array of stakeholders who understand the market’s potential.

Recent data from Statista projects an annual growth of 9.6 per cent in 2024-28 for the industry, surpassing many other sectors. And the robust expansion is not merely numerical but a reflection of the evolving tastes and lifestyles of Kenyan consumers, who increasingly seek convenience, quality and variety in their dining experiences.

To truly grasp the exponential growth of the fast-food industry, one must delve into the intricate socioeconomic factors at play. Urbanisation, with its promise of opportunity and upward mobility, has spurred the migration of millions of people from the rural areas to towns and cities, creating densely populated urban hubs hungry for convenient dining options. Data show the urban population share in Kenya reached a peak in 2022, at 29 per cent.

The rise of dual-income households and proliferation of technology have reshaped consumer behaviour with increasing reliance on on-the-go meals and digital ordering platforms. The market dynamics, coupled with a youthful demographic hungry for new experiences and convenience, have laid the foundation for the explosive growth.

As such, it is no surprise that Statista sees the Kenyan restaurant delivery market reaching a revenue of $300 million in 2024. Consequently, a spectrum of stakeholders, from local entrepreneurs to multinational corporations, is eager to seize the opportunities within this flourishing market, fostering innovation and competition. It is, thus, crucial to identify the roles strategic partnerships play in the growth of the Kenyan food service industry.

Amid the expansion and evolution, strategic partnerships have emerged as a lynchpin in the local fast-food industry’s ascent. These alliances serve as catalysts for growth, enabling brands to leverage synergies, expand market reach and innovate in response to changing consumer dynamics.

As such, collaborations between fast food brands and other entities, like delivery platforms, suppliers and technology providers, are increasingly prevalent, fuelling the industry’s rapid expansion and enhancing the overall customer experience.

The industry is attracting significant attention from international players. Kenya’s strategic location, growing middle class and favourable business environment make it an attractive destination for foreign investments. Renowned fast-food chains from across the globe are setting their sights on the country’s burgeoning market, recognising its untapped potential and lucrative opportunities.

As the fast-food industry continues to flourish, strategic partnerships are poised to play a central role in driving growth and innovation. Leveraging technology, expanding reach and prioritising customer satisfaction, these partnerships are fuelling economic development, advancing job creation, supporting local communities and ensuring that delicious culinary experiences are accessible to all.

- Ms Mutuku is the general manager, Glovo Kenya. [email protected].