COVID-19: How the pandemic is driving a new e-commerce wave in Kenya

The COVID-19 pandemic has brought about a new wave of e-commerce in Kenya, with businesses adapting to changing consumer behavior and market demands. One such example is Bolt Business Delivery, which was launched at the onset of the pandemic and has since seen increased deliveries and a surge in cashless payments on its platform. Ola Akinnusi, Country Manager of Bolt Kenya, recently joined CNBC Africa to discuss how the company has navigated these challenges and capitalized on the evolving landscape. Akinnusi highlighted that consumer behavior has significantly shifted over the past few months, prompting businesses like Bolt to step up their innovation efforts. By focusing on creating products and services that cater to the changing needs of their customer base, Bolt has successfully introduced new solutions like the Bolt Business Delivery service. This service aims to address the logistical transport needs of SMEs, corporations, and individuals, especially during a time when remote work and the need for contactless deliveries have become increasingly prevalent. The company's proactive approach to innovation has not only helped them retain existing customers but also attract new ones in a rapidly changing market. The pandemic has not only impacted businesses like Bolt but has also catalyzed the uptake of e-commerce across various sectors. Akinnusi emphasized that the pandemic has reshaped the way people view commerce and economic activities, urging businesses to adapt and evolve to meet the new demands. While the digital tax introduced by the Kenyan government may pose challenges for e-commerce platforms, Akinnusi sees it as a positive step towards regulating the industry. He believes that proactive engagement with policymakers and regulators can lead to the development of balanced regulations that support industry growth while protecting all stakeholders. When asked about the possibility of tax exemptions for the e-commerce sector, Akinnusi expressed the view that businesses should not be overburdened with taxes that do not directly contribute to their growth. While tax exemptions can be beneficial under the right circumstances, he stressed the importance of aligning with any new tax regime that may be introduced in Kenya. By engaging constructively in discussions and ensuring that the tax system benefits both businesses and the economy as a whole, Bolt aims to play a responsible role in supporting the country's economic development. In conclusion, the e-commerce landscape in Kenya is undergoing a significant transformation driven by the COVID-19 pandemic. Businesses like Bolt are leveraging innovation to meet the changing needs of consumers and adapt to the new normal. As the sector continues to evolve, proactive engagement with regulators and policymakers will be crucial in shaping the future of e-commerce in the country.