Abdimalik Mohamed Issack, founder and director of Livemall Online Shop./HANDOUT
Despite the rapid growth of e-commerce in Kenya, the journey to a fully functional and trustworthy digital marketplace remains fraught with challenges.
Fueled by the widespread use of mobile money, improved internet access, and a youthful, tech-savvy population, online shopping has quickly become a part of daily life.
For Abdimalik Mohamed Issack, founder and director of Livemall Online Shop, a Nairobi-based e-commerce platform, these hurdles have been part of the growing pains of a sector on the verge of transformation.
Issack launched Livemall in 2021 with a vision of offering high-quality sneakers, electronics, and household goods to Kenyan consumers through an easy-to-use digital platform. But as the business has grown, so too have the obstacles.
“Kenyans are embracing e-commerce, but they want to be sure they’re not taking a risk,” Issack said. “Trust is hard to earn, but once you’ve built it, it’s a game changer.”
For many Kenyans, online shopping still feels like a gamble. Despite the convenience of browsing goods from home, too many have had negative experiences with fraud, counterfeit goods, or poor customer service.
According to a 2023 survey by the Communications Authority of Kenya, nearly 40 per cent of online shoppers reported issues with their purchases, ranging from receiving subpar products to being unable to track deliveries.
Ann Mumbi, a 33-year-old office administrator in Nairobi, is among those who remain wary of online shopping.
“I once ordered a handbag from a Facebook seller,” Mumbi recalled. “What I received was nothing like the picture—cheap material, bad stitching. I was furious. That’s why I’ll never pay upfront again.”
For many Kenyans like Mumbi, the experience of being scammed online has created a trust gap that still limits the growth of the sector. Once burned, many shoppers prefer cash-on-delivery (COD) options, opting to pay only when their products arrive in hand.
Issack acknowledges this challenge but believes that trust can be rebuilt, one customer at a time. “We pride ourselves on transparency. We make sure that product descriptions are clear, and we only sell authentic goods,” he said. “We’ve built a reputation on reliability, and that’s why customers keep coming back.”
The delivery dilemma
Even when customers trust a platform, delivery remains a persistent pain point. While many urban dwellers enjoy quick and reliable delivery, those in rural areas often experience significant delays. Nairobi’s traffic and logistical bottlenecks add another layer of frustration, with some customers complaining about missed delivery windows or lack of communication from courier companies.
“Delivery is something we’ve invested heavily in,” Issack explained. “We’ve worked to build partnerships with reliable courier services to ensure we deliver on time. For us, it’s about providing a customer experience that’s as reliable as shopping in a physical store.”
Despite these efforts, the larger issue of Kenya’s underdeveloped logistics infrastructure continues to hinder the sector. Delivery costs, especially to outlying areas, can be prohibitive. As e-commerce demand rises, solving the delivery problem will be critical for platforms like Livemall, Jumia, and others.
Counterfeit goods: The silent threat
Perhaps the most insidious challenge facing Kenya’s e-commerce ecosystem is the widespread presence of counterfeit goods. In a market where buyers can’t always touch, feel, or try products before purchasing, many online shoppers worry that they’re unknowingly buying knock-offs or substandard products.
From fake electronics to counterfeit cosmetics, the risk of receiving counterfeit goods is a constant concern. This has made some consumers wary, even when dealing with established platforms.
Issack is acutely aware of this issue and has made it a point of emphasis at Livemall. “We know that counterfeits are rampant in Kenya. That’s why we only source products directly from reputable suppliers and manufacturers. We make sure our customers get what they expect—nothing less,” he said.
While the government has made efforts to combat counterfeit goods through regulation and consumer protection laws, the scale of the problem remains significant. For e-commerce platforms, combating this issue is not only a matter of legal compliance but also of maintaining consumer confidence.
The payment conundrum
Although Kenya’s mobile money revolution has been a game changer for online transactions, many consumers remain hesitant to make payments upfront. Mobile money services, which allow users to transfer money via their phones, has provided a seamless payment solution, yet many still prefer the security of paying only once they’ve received their goods.
“The flexibility of offering both mobile money payments and cash on delivery is key,” Issack explained. “We understand that some customers want to pay after receiving their orders, and that’s fine. It’s about giving people the choice to feel secure in their transactions.”
But as e-commerce platforms grow, there’s a growing push toward encouraging prepayments. Some platforms are offering discounts or promotions to incentivize customers to pay in advance. For Livemall, fostering a culture of trust where customers feel comfortable paying upfront is a gradual process.
Despite the high rate of smartphone penetration in urban areas, many rural Kenyans still face significant barriers when it comes to digital literacy.
While younger generations in cities have embraced online shopping, older generations, particularly in rural regions, remain unfamiliar with how to navigate e-commerce platforms.
Issack sees this as both a challenge and an opportunity.
“Digital literacy is improving every day,” he said. “Young people are teaching their parents how to shop online, and that’s opening up a massive new market.”
As internet access improves across the country, the digital divide is slowly closing, with more Kenyans getting comfortable with e-commerce platforms. However, the process of digital inclusion is ongoing, and its pace will play a major role in the future growth of the sector.
Despite the challenges, the future of Kenya’s e-commerce market looks promising. With a population that’s young, tech-savvy, and increasingly connected, experts predict the sector will continue to grow at an impressive rate. However, for this growth to be sustainable, businesses must address the core issues of trust, delivery reliability, and consumer protection.
“Kenyans are ready for e-commerce,” Issack said. “They’re just looking for the right platforms to trust. We’re committed to proving that online shopping can be safe, reliable, and enjoyable. That’s how we’ll transform this market.”
As the industry matures, it will require greater collaboration between businesses, consumers, and the government to create a more robust e-commerce ecosystem. But for now, platforms like Livemall are taking steady steps to overcome the challenges, proving that despite the growing pains, Kenya’s digital marketplace is here to stay.
