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Establishment of Malls in Eldoret Changing the Face of Retail

Brigid Chemeli by Brigid Chemeli
7th February 2023
in Business
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Malls in Eldoret
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The retail landscape in Eldoret is taking its market on a different dimension, and it is starting to show. Shopping malls are now a trend that is picking up fast and is surely turning a lot of heads while at it.

For the longest time, Zion mall was the only mall in Eldoret. It was opened in 2011 and is located at the heart of Eldoret town along the popular Uganda Road. The busy complex hosts a supermarket amongst restaurants, a clinic, banking services as well as boutique and clothes shops. Zion mall is reminiscent of the downtown access to all services except for the hustle and bustle.

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It was not until 2017 that Rupa’s mall, the biggest mall in Eldoret was put up. Rupa’s is a mixed-use development with retail, restaurants as well as individual stores. Even with not-so-typical tenants like grocery stores, the cinema, a kid’s playground, and a waterpark as well as a full fun and fitness center inclusive of swimming pools. Its success as a mixed-use center can be attributed to the wide range of tenants attracting customers into their spaces. Rupa’s mall provides the blurred blending of the convenience of a city, shopping, and fun all together.

Highlands Mall has since then opened and is conveniently located on the main Eldoret- Webuye highway. Within the proximity, are well-populated estates and areas like the West and Industrial area as well as the Eldoret CBD. Another mall is Elgon view mall on Eldoret-Kisumu highway. This is one mall which was very highly needed. Notably, the locations of the malls are strategic in the expansion of the town.

How retail is changing

Let’s talk about the impact of anchor supermarkets. Better-performing supermarkets such as Naivas continue to take up space occupied by struggling retailers, further attracting customers to those outlets. Naivas supermarket, the largest local supermarket chain, now has opened 4 outlets in Eldoret. Two of them are located in shopping malls; Zion mall and Elgon view mall. Khetia’s has recently opened its second branch at the Highlands mall while Rupa’s Mall is anchored by Chandarana Foodplus.

Other than supermarkets, other sub-anchors such as restaurants and entertainment players continue to increase bringing variety with them. Eka, a renowned five-star hotel is now in Eldoret at Rupa’s mall. Fast foods such as KFC, Java, Bakers point, and Pizza Inn are also located at Rupa’s. Elgon View mall on the other hand hosts the Origin coffee house, a homegrown fusion restaurant. Furthermore, the Farm Grill, Chicken Inn, and Pizza Inn are also at Highlands mall. All this is motivated by Eldoret’s emerging restaurants and fast food culture.

Not being left behind are boutiques and clothes shops as well as beauty shops. Fashion retail is coming in heavily with popular Kenyan brands such as Vivo, and Mr Price as well as international brands such as Woolworths and LC Waikiki. A lot of Eldoret-based brands are also impressively taking root. Rupa’s alone has over 15 fashion retailers and several beauty retailers.

What is driving this culture of malls in Eldoret

 According to the Kenya retail report 2022 as reported by Cytonn, these are some of the aspects contributing to the development of retail in Eldoret.

Rise of the middle class. The rate of growth of the middle class in Eldoret is relatively high which is translating directly to demand for certain goods and services that serve them.The more demand, therefore, is what encourages the cropping up of malls to be able to accommodate the retail stores interested in the market.

Growing Investor appetite. Since Uasin Gishu was recognized as the most favorable investment destination in Kenya; according to a World Bank report, many retailers are starting to expand to tap into its potential. The demand for space is therefore much needed and much appreciated.

Ease of doing business. A similar World Bank report on doing business in Eldoret established that with all the factors considered, it takes only 20 days to start a business in Uasin Gishu. This translates to the ease to adhere to the regulations, obtain permits, and acquire licensing among others including capital acquisition. Investors, therefore, are not troubled.

Competition. Real estate is a ripe venture right now in Eldoret. As the town grows rapidly, there are a lot of opportunities to be tapped into. The opportunities, therefore, has led to competition amongst retailers; organizations and other stakeholders in trying to establish here in the city of champions. And in a bid to tap into the increasing demand for commercial spaces, investors are equally focusing on creating the spaces in order to match the demand. Shopping malls just happen to be one of those commercial spaces, that are increasing in popularity.

What to expect

With that said, two more shopping malls are well on their way. The ACK Plaza which is under construction right next to Zion Mall is not only expected to give the town a facelift but provide convenience as well. The Ksh. 1 Billion project shall be composed of modern spaces for supermarkets, offices, eateries and stores as well. Mall number two is the Hillrose Mall, located at the junction of Old Nairobi road and Testimony Elgon view. the 60,000sq feet commercial spaces is set to host retail spaces as well as provide ample parking in the premises. You should watch out for these!

Eldoret is a growing town and soon-to-be city, and it offers a lot of opportunities. Shopping malls are just but some of them and are playing a key role in its development.

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