NAIROBI, Kenya, Aug 16 -The ongoing pandemic and economic slump has continued to adversely affect the retail sector.
This is according to a report by Knight Frank which indicates that during the first half of the year, prime retail rents decreased from US$ 4.2 per square foot (sq. ft) per month to US$ 4.00 per sq. ft per month.
The marginal decline was mainly attributed to the economic slowdown, reversal of various tax reprieves in January resulting in less disposable incomes and re-introduction of containment measures in March.
“Footfall across retail centres steadily increased in the first quarter of 2021, until April when there was a decline due to another government lockdown,” the report said.
The report however notes that upon reopening of the economy in May, footfall once again gradually increased in both May and June.
Similar to last year, occupancy levels for retail centres averaged 70-80 percent, although more established malls recorded higher occupancy levels of up to 90 percent.
