Lessons from UZURI K&Y Expansion to Nairobi, Kenya
Business expansion to new markets is not a decision that entrepreneurs take lightly. In Africa, where markets, regulations, and customer behavior are not easily comparable, expansion decisions can feel daunting. In the interview below, we discussed with Kévine Kagirimpundu who is the CEO of Uzuri K&Y and a 2019 Top 10 hero to discuss their recent expansion to the Kenyan market and the lessons they are learning from the process of expansion so far.
For those who might not be familiar with the work of UZURI K&Y, share with us what you do.
At UZURI K&Y, we specialize in crafting eco-friendly footwear using the innovative 4R technology, repurposing car tires to address environmental challenges while providing stylish and sustainable footwear options. Our mission revolves around solving pressing environmental issues and tackling youth unemployment through artisanal craftsmanship and sustainable practices. We have been operating in Rwanda for 11 years and we have 118 permanent employees and a factory that produces 48,000 pairs of shoes per year.
You recently expanded to Nairobi, Kenya, a market that is different from Kigali where you had been operating for 10+ years. How did you land on Nairobi as the market to expand to and how does expanding to a new market affect your operations?
We carefully evaluated potential markets and identified Nairobi as a strategic expansion opportunity due to its sizable consumer base, growing awareness of sustainability, and alignment with our brand values. Expanding into a new market necessitated adjustments in our operations, including sourcing raw materials locally, adapting hiring strategies to the Kenyan labor market, and optimizing supply chains for efficiency. We were required to be strategic as we penetrated a market as competitive as Kenya by focusing on building strong partnerships with local distributors, leveraging digital marketing channels, and offering unique value propositions tailored to Kenyan consumers' preferences.
How Did you Raise the Funds for Expansion?
We secured funding for expansion through a combination of equity funding from existing investors who share our vision, strategic partnerships with local stakeholders, and exploring available grants or incentives for sustainable businesses.
Though this is a recent expansion, what are some of the insights that you have already learned from expansion?
We are already learning a lot including understanding cultural nuances, consumer behaviors, and regulatory frameworks unique to Kenya compared to Rwanda. An example I would give is that in Rwanda, we typically rely on billboard marketing as a marketing channel, whereas in the kenyan market influencer marketing is a prominent marketing strategy. We have had to adapt various aspects of the business to the Kenyan market. My advice to entrepreneurs who are considering expanding to another African country would be to conduct thorough market research, develop a robust operational plan, secure adequate funding, and remain open to learning and adapting to the dynamics of the new market.
