South African Restaurant Chain to Open Two New Outlets in Kenya
Staff Writer  |  Jan 20, 2020
       

Spur Corporation Ltd, a South African restaurant chain, announced plans to open two additional outlets in Kenya in 2020, as part of its expansion strategy. The restaurant chain currently has 7 outlets in Kenya, which comprise of 5 steak houses, a restaurant and a pizzeria.

This is an indication of the continued expansion efforts by international retailers aimed at increasing their local foothold in the country.

The continued entry and expansion of international retail in Kenya has continued to boost the retail real estate sector through space uptake thus boosting the investors’ returns.


However, according to Cytonn Annual Markets Review – 2019, the sector has an existing oversupply of 2.8 million square feet of space, which has continued to cripple its performance. According to the report, the sector recorded a decline in rents and occupancies by 1.5% and 4.0%, respectively, to Kshs 175.5 and 75.9% in 2019 from Kshs 178.2 and 79.8%, respectively, in 2018, attributed to the oversupply which has created a bargaining chip for retailers forcing developers to reduce or maintain their rents in order to remain competitive and attract occupants to their retail spaces.


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