NAIROBI, Kenya – In a historic economic shift, rural and peri-urban counties have become the engine of Kenya's e-commerce sector, now accounting for 60% of all online purchases, a new Jumia Kenya report released on Monday, November 17, 2025, has revealed. The findings signal a profound change in consumer behaviour and digital adoption, repositioning online retail from an urban convenience to a critical driver of nationwide economic inclusion.

The report, titled “E-commerce in Rural Kenya: Expanding Access, Driving Inclusion, Connecting Border to Border,” indicates that the digital marketplace now supports over 50,000 livelihoods through its ecosystem of vendors, delivery riders, and commission-based JForce sales agents. Vinod Goel, Jumia's Regional CEO for East Africa, described the trend as a “historic behavioural shift” powered by the convergence of affordable smartphones, widespread mobile money, and increasingly sophisticated logistics networks.

“This report is not just about online shopping — it’s about livelihoods, inclusion, and opportunity,” Goel stated, emphasizing that rural households can now access a wider variety of goods at more competitive prices.

SMEs and Logistics Fueling County Growth

The transformation is significantly benefiting Small and Medium-sized Enterprises (SMEs), which now constitute 60% of all sellers on the Jumia platform. This access allows small businesses in the counties to tap into a national market that was previously unreachable through traditional retail models, fostering entrepreneurship and diversifying local economies.

Underpinning this growth is a deliberate expansion of Jumia's physical footprint across the country. The company has established a network of over 300 pickup stations in more than 100 towns, covering all 47 counties. This logistical infrastructure has been instrumental in reducing average delivery times for rural customers to between two and four days, making online shopping a reliable option for essentials and high-value items like electronics and appliances.

A critical component of this rural outreach is the JForce programme, an independent sales consultant network that has grown to over 26,000 agents nationwide. These agents serve as a vital human interface, helping first-time online shoppers, building trust within communities, and even coordinating bulk orders. The programme directly addresses challenges such as limited digital literacy and initial mistrust of online transactions.

The National Digital Context

Jumia's findings align with broader national data on digital connectivity. According to the most recent statistics from the Communications Authority of Kenya (CA) for the quarter ending June 2025, 4G and 5G network coverage has reached 97.3% and 30% of the population, respectively. Smartphone penetration stood at 83.5% by June 2025, creating a vast addressable market for digital services. Furthermore, with 45.36 million mobile money subscriptions reported by March 2025, the infrastructure for seamless digital payments is firmly in place, enabling the growth of e-commerce.

However, a joint CA and Kenya National Bureau of Statistics (KNBS) report from August 2025 highlighted a persistent urban-rural digital divide, with internet penetration at 64.6% in urban areas compared to 48.6% in rural settings. Jumia's agent-led model appears to be successfully bridging this gap by providing assisted e-commerce, effectively bringing online shopping to those who may not yet have the confidence or consistent access to navigate it alone.

Future Growth and Policy Considerations

Looking ahead, Jumia projects that rural e-commerce penetration will continue to grow, potentially exceeding its current share as digital infrastructure deepens. However, the report cautions that this progress depends on a supportive policy environment. Goel raised concerns about proposed tax measures, such as a withholding tax on marketplace transactions, warning it could inadvertently push SMEs back into the informal sector and limit their growth.

“To protect that progress, policies should recognise the role of marketplaces, support SMEs, and create a level playing field for both local and global digital platforms,” Goel urged. The report concludes that with conducive regulation, the continued expansion of e-commerce into Kenya's counties could position the nation as one of Africa's most inclusive digital economies.