Ngong Road Jua Kali Market - Buy Kenya Build Kenya: Furniture and Furnishings Industry
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Buy Kenya Build Kenya:
Furniture and Furnishings Industry
Ngong Road
Jua Kali Market
Introduction
The Government of Kenya in its Integrated National Export Development and
Promotional Strategy under the manufacturing sector has singled out the furniture,
textile, leather, pharmaceutical, light engineering, automotive and agro processing
industries among other sub sectors as the key drivers of industrial transformation
because of their envisaged role in employment creation and economic growth.
The strategy document presupposes that an export oriented approach will lead to
rapid economic growth, boosting emergence of a modern manufacturing sector,
providing employment, and reducing poverty based on similar experience by
Taiwan and South Korea in the 1960’s and 1970’s, Malaysia, Thailand and Singapore
in the 1970’s, China in the 1980’s, and eventually India in the 1990’s.
Furniture and Furnishing subsector value chain
Tree Textile and Market and
Forestry Plastic Metal Accesories Distribution
Timber Leather Packaging and
Industry Branding
Projected Furniture
2019 and Furnishing
Domestic Market Size
2018
2017 $878m Domestic Market
Share Distribution
2016 $799m
Improrted Furniture
$726m
2015
13%
$660m 87%
$600m
Localy Made
Furniture
Furniture and Furnishing Sub Sector Challenges
01 Limited and unreliable supply of inputs limiting industry growth and
increases reliance on imports;
02 Insufficient investment in technology, design, skills, and supply chain results
in limited availability of industry-specific skills and low levels of productivity
03 Limited market for Jua Kali (Informal producers) in formal retail
outlets who prefer to import
04 Limited sub contracting and collaboration with by Formal retail outlets
05 Lack of official representation through sub sector associationFurniture and Furnishing Case Study
Focus on Jua Kali artisans
at Ngong Road-Nairobi
Independent Carpenter
About the Founder
Paul Munyao is a carpenter hailing from Makueni County. After completion of his
primary education, he pursued a technical course in carpentry while in Makueni
before moving to Nairobi to practice the trade.
Paul’s interest in Carpentry was sparked by the need to earn income to assist his
poor family and the abundant availability of trees.
Business Process
01 CUSTOMER ORDER 02 SOURCE OF RAW MATERIALS
- Munyao sources for Raw Materials from timber
- Customer places order
wholesalers at Ngong Road or Gikomba market
- Customer raises deposit depnding with volumes needed
03 MANUFACTURE 04 DELIVERY & FINAL PAYMENT
- Munyao delivers finsished product to customer
- Munyao hires a workspace at a fee and as he collects final payment
manufactures the furniture - Average daily revenue is Kes 2,500Challenges Successes
1. Lack of capital 1. Operated his business for over
2. Access to market challenges due 21 years hence sustained his family
high competition along Ngong road 2. License leniency by County
3. Workshop space challenge Government of Nairobi
4. Lack of association to represent
them to county and national
discourseUnique Handcraft Furniture
About the Founder
Peter Kyuli specializes in metallic furniture a skill he learnt from a metal work
certificate course he took at Don Bosco. He gained experience afterwards via
casual work but decided to start his own workshop along Ngong road in 2014.
Challenges Successes
1. Low profit margin 1. Business has sustained his family
2. Defaulting or late payment by 2. Won and successfully delivered an
clients order to Springwood Montessori in
3. High and fluctuating input cost Ngong Road.
(Raw Materials)
4. Workspace challenges (Lack of
display area due to ongoing
construction of Ngong Road)
5. High electricity cost
Competitive Advantage
1. Competitive pricing
2. Customization of order
3. Skilled laborWhite Nile Furniture Shop
About the Founder
James has operated this furniture shop since 2007. As he was pursuing a diploma in
Business Administration he stared doing casual jobs in order to make income for
sustenance.
James got a carpentry contract as an apprentice at Kakuma refugee camp and later
in Somalia where he perfected his trade as well as other skills such as sales and
marketing.
Unfortunately James never finished his diploma in business administration but still
applies the knowledge he learnt both in and out of school to his business.
Business Process Challenges
01 CUSTOMER ORDER 1. Competition due to large number
- Customer customised furniture
of furniture shops along Ngong road.
- Customer raises deposit 2. Lack of appreciation of wood
quality by clients
3. Show room space challenges
03 MANUFACTURE & DELIVERY 4. High input cost
- Manufacture 5. Defaulting and late payment by
- Delivery and Final payment customers
6. Little to no business differentiation
02 SOURCE OF RAW MATERIALS
- Hard Wood-Export suppliers
- Softwood-Sourced locally from Kapsabet and
EldoretRecommendations The furniture and furnishing sub sector has an enormous potential for job creation as well as contribute to economic growth. Based on the challenges faced by players in the sector the following are possible recommendations: 1. Establishment of sub sector association that would enable structured engagement with government and other stakeholders 2. Establishment of collaboration framework between Jua Kali sector players and formal retail shops that rely entirely on imported furniture 3. Procurement opportunity for Jua Kali players in the furniture and fitting in the big four agenda under affordable housing 4. Establishment of safe and affordable work and showroom space for the sub sector players located at Jogoo and Ngong road
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