Small retailers in Nairobi www.businesstoday.co.ke
Cash management, proper record keeping increases profits for retailers. [ Photo / Kenyanwallstreet ]

Small shops can greatly improve their profits through the adoption of digital technologies, according to a report by TechnoServe.

Small shops that invested in Point of Sales (POS) systems were able to capture accurate data that enabled the retailers to understand their shops’ performance, record their transactions and manage their customers and suppliers better.

“Through the POS, Duka owners were able to monitor goods with the highest turnover helping them quickly ascertain which products contributed most to their revenues and determine their stock levels at any given time,” says the report developed under the Smart Duka Program.

As Duka owners digitally record debtors on the POS, they also significantly improved debt collection. At least 23% of the dukas that used the product were able to recover 30% more from credit sales.

Additionally, the Smart Duka Program report found that cash management, proper record
keeping, good shop displays, and good customer service resulted in retailers increasing their
profits by as much as 44%.

Launched in 2016, the Smart Duka program targeted duka owners, managers, and employees to grow their businesses by providing business and financial management skills. The skills
include shop management practices, supply chain management and financial management.

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Although small, they generate 70% of Kenya’s retail revenue

Smart Duka Program

TechnoServe in partnership with Citi Foundation, Elea Foundation for Ethics in Globalization,
MasterCard Centre for Inclusive Growth (MCIG) and Moody’s Corporation, through the Smart
Duka program, has worked with close to 8,000 shops located in Nairobi’s informal settlements.

The informal retail sub-sector is predominantly populated by Micro-SMEs (or micro retailers). Although ‘small’, they generate 70% of Kenya’s retail revenue with 95% of all shoppers frequenting these small
businesses, otherwise known as ‘dukas’, to stock up on day-to-day products (Nielsen 2015).

TechnoServe works with enterprising people in the developing world to build competitive farms,
businesses, and industries. It is a nonprofit organization that develops business solutions to poverty by linking people to information, capital and markets.

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