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E-Commerce in Africa 2026: What Works and How to Start in Kenya

6 min read

Which e-commerce models work in Africa in 2026, what Jumia, Wasoko and Copia teach, and the payment, delivery and data rules for selling online in Kenya.

In 2026, the e-commerce models that work in Africa sell through channels people already use, take payment by mobile money, and control delivery costs order by order. In Kenya that usually means social selling or a simple store, M-Pesa at checkout, and pickup points or riders. The B2B platforms supplying small shops are among the largest operators.

I co-founded Hackhouse, a builders' hub in Nairobi, and many of the founders who come through our doors sell physical goods. This guide looks at what the larger operators show us, then sets out the decisions you make when you start selling online in Kenya. I checked every figure on 5 November 2026.

What do the biggest African e-commerce companies show us?

Jumia, the best-known pan-African online retailer, reported Q2 2026 revenue of US$52 million, up 14% on a year earlier, with gross merchandise value of US$216.3 million. Its adjusted EBITDA loss fell from US$13.6 million to US$8.7 million, and the company says it is on track to break even on that measure in the fourth quarter of 2026. It also raised US$50 million, including US$25 million from the IFC (Techeconomy, August 2026). For a smaller seller, the useful lesson is to know your cost per order from the first sale.

B2B commerce, where a platform supplies the corner shop, has grown into the other large model. Wasoko and MaxAB completed their merger in August 2024, combining a network of about 450,000 merchants. The companies said they had extended over US$20 million in merchant financing in the previous year (Techpoint Africa, 2024). Order data from shopkeepers who restock every week is what makes that lending possible.

Copia, the Kenyan platform built for rural and lower-income shoppers, raised over US$123 million between 2013 and 2023, entered voluntary administration in May 2024 and was liquidated by September that year (Techweez, 2025). A loved brand and a large agent network could not make up for delivery costs that stayed too high per order.

Which e-commerce model should I start with in Kenya?

Pick the model that fits your product and your cash. Most first-time sellers choose one of these:

  • Social selling. You sell through WhatsApp, TikTok, Instagram or Facebook and take payment by M-Pesa. DataReportal counted 23.4 million internet users in Kenya at the end of 2025, and TikTok's ad tools reached 18.4 million adults (DataReportal, Digital 2026 Kenya). Low cost to start, but orders live in chats and are hard to track.
  • Your own online store. A website with a checkout gives you customer data and a brand you own. You pay for building it and for the traffic.
  • Marketplaces. Listing on an established marketplace gets you buyers on day one in return for commission and less control over the customer.
  • B2B supply. You sell stock or software to shops, salons or restaurants. Orders repeat, and buyers judge you on price, reliability and credit terms.

Many Kenyan sellers start with social selling to prove demand, then add a store once repeat customers appear.

How do I take payments for an online shop in Kenya?

Mobile money is the default. GSMA's 2026 industry report found that US$1.4 trillion flowed through mobile money in sub-Saharan Africa in 2025, with East Africa alone at US$806 billion (Connecting Africa, March 2026). Your options:

  1. An M-Pesa till or paybill from Safaricom for direct payments. Simple for social sellers, though you reconcile orders by hand.
  2. A payment gateway for a website checkout. Paystack Kenya lists 1.5% per M-Pesa transaction, 2.9% for local cards and 3.8% for international cards, with no setup or monthly fees (Paystack pricing).
  3. Pay on delivery, where the rider collects. It builds trust with first-time buyers, but you carry the cost of refused parcels.

Our guide on integrating mobile money payments into your app covers the integration side.

How do I deliver orders in Kenya without losing money?

Delivery decides whether an order makes money. Work out your full cost per order (packing, rider or courier, returns and payment fees) before you set prices or offer free delivery.

Pickup-point networks keep that cost down. Pickup Mtaani, for example, lists over 150 parcel collection points, doorstep delivery, pay on delivery with withdrawals to its wallet, and shelf rental at its CBD offices (Pickup Mtaani). Compare a few providers on price, coverage outside Nairobi and how they handle failed deliveries.

What rules apply to selling online in Kenya?

  • Registration and tax. Register your business with BRS and get a KRA PIN. Our guide to registering a company in Kenya lists the steps and fees.
  • Customer data. Under the Data Protection Act 2019 and the 2021 regulations, you need a customer's consent to send direct marketing, and you must give a simple way to opt out (CIPIT, Strathmore University).
  • Payments. Use licensed payment providers rather than holding customer money informally.

What comes next for cross-border e-commerce in Africa?

Selling across borders is still slow and costly, but the rules are being written. The African Union adopted the AfCFTA Protocol on Digital Trade in February 2024. Heads of State then adopted eight annexes in February 2025, covering topics including cross-border digital payments, digital identities and cross-border data transfers (AfCFTA Secretariat). The Protocol takes full effect once at least 22 State parties ratify it (Biometric Update, April 2026). Until then, test one neighbouring market with a local payment partner before promising regional delivery.

Key facts

  • Jumia's Q2 2026 revenue was US$52 million, up 14%, and it targets adjusted EBITDA breakeven in Q4 2026.
  • Wasoko and MaxAB completed their merger in August 2024 with about 450,000 merchants.
  • Copia raised over US$123 million and was liquidated by September 2024.
  • US$1.4 trillion moved through mobile money in sub-Saharan Africa in 2025.
  • Paystack Kenya charges 1.5% per M-Pesa transaction with no setup fee.
  • Kenya had 23.4 million internet users at the end of 2025.

If you are building a commerce startup, the Hackhouse Residency runs for 12 weeks with no equity taken, and our events are a good place to meet logistics and payments founders.

Frequently asked questions

Is e-commerce profitable in Africa?

It can be, but many large players are still working towards it. Jumia reported an adjusted EBITDA loss in Q2 2026 and targets breakeven in Q4 2026. Small sellers who control delivery cost per order can be profitable sooner.

What is the cheapest way to start selling online in Kenya?

Social selling through WhatsApp, TikTok or Instagram with an M-Pesa till costs little to start. Add a website and a payment gateway once repeat orders justify it.

Do I need a licence to sell online in Kenya?

You need a registered business and a KRA PIN, and some products such as food, medicine and alcohol need sector licences. Check with the relevant regulator and your county.

Can I send marketing messages to my customers?

You can, with their consent. Kenya's data protection rules require consent for direct marketing and a simple way for customers to opt out.

Sources

Go deeper with us. Join the Hackhouse community for conversations that go beyond the surface, where builders share the hard-won lessons that never make it into press releases.

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