Growth, Trends & Challenges of Kenya’s Online Food Delivery

Nairobi, Kenya – Kenya’s online food delivery industry is experiencing unprecedented growth, driven by increased digital adoption and shifting consumer habits. Recent reports indicate that in 2023, the sector generated approximately $103 million, with projections suggesting an annual growth rate of over 19%. This rapid expansion underscores the growing reliance on digital platforms for meal and grocery purchases.
According to a study by the Competition Authority of Kenya (CAK), food delivery services are now an integral part of urban life, with Nairobi leading the market. The sector has been dominated by major players such as Glovo, Jumia Food, Uber Eats, and Bolt Food, each competing for market share in a rapidly expanding digital economy.
Glovo Takes the Lead in Food and Grocery Deliveries
The CAK study reveals that Glovo is the dominant food delivery platform in Kenya, commanding 33% of the user base. Jumia Food follows with 23%, while Uber Eats and Bolt Food hold 21% and 16%, respectively. In the grocery delivery segment, Glovo leads with 46% of users, while Jumia accounts for 35%.
With an increasing number of consumers opting for convenience, online shopping is becoming more prevalent. Currently, 9% of Kenyans shop online, but this figure is expected to reach 16% by 2027—representing approximately 10.6 million consumers. Young adults between 21 and 30 years old make up 40% of online food and grocery shoppers, highlighting a generational shift towards digital transactions. Mobile money platforms such as M-Pesa and Airtel Money account for 94% of payments in the sector.
Local and International Cuisines Dominate Orders
As the food delivery sector grows, so do consumer preferences. According to a report by Bolt Food, popular dishes ordered in Kenya include Indian cuisine, chicken dishes, pizza, coffee, burgers, and ice cream. These choices reflect the increasing demand for both international and local meals.
At the same time, local street food has gained popularity, largely due to social media platforms like TikTok. Vendors have leveraged digital marketing to promote dishes such as ‘smocha’—a combination of smokies, chapati, and salad—alongside guacamole salad and ‘mayai pasua.’ The viral appeal of these dishes has helped them secure a strong presence in the online delivery market.
Challenges Facing the Sector
Despite its rapid growth, the industry faces several challenges. A significant number of customers, approximately 32.9%, have reported experiencing delays in delivery times. Other common complaints include receiving incorrect orders, poor customer service, and substandard product quality.
To address these concerns, some platforms have introduced measures such as offering replacements and refunds. According to the CAK study, 30% of affected customers received replacements for incorrect orders, while 10% were offered refunds.
Economic Contributions and Job Creation
The expansion of Kenya’s food delivery industry has had a notable economic impact. Uber Kenya’s Economic Impact Report estimates that the company contributed approximately KSh 14 billion to the economy in 2023. The report also notes that Uber boosted the country’s nighttime economy by KSh 167 million and added KSh 2.7 billion in value to the tourism sector.
Restaurants and eateries have also benefited from the online food delivery boom, with Uber Eats alone adding KSh 534 million in value to the sector. The industry has created job opportunities for couriers and delivery drivers, contributing to Kenya’s gig economy and providing employment for thousands of individuals.
The Future of Online Food Delivery in Kenya
As Kenya’s food delivery sector continues to evolve, industry players are investing in new technologies and operational efficiencies to enhance service delivery. Companies are focusing on improving delivery speed, customer experience, and order accuracy to retain and expand their customer base.
With the market expected to grow further, businesses must adapt to the changing digital landscape. Companies looking to stay ahead in the online food delivery space can benefit from strategic partnerships and digital transformation initiatives.
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