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10. CONSUMPTION CENTRES - DEMAND CHARACTERISTICS AND DEVELOPMENT REQUIREMENTS

10.1 The Nairobi Market

10.1.1 Present Demand Situation and Potential

Nairobi is the market with the greatest development potential in Kenya. Its approximate population is 330,000 broken down as follows:

Africans220,000
Asians  90,000
Europeans  20,000

Nairobi is also the largest actual market in Kenya. Present consumption is estimated at approximately 3,000 tons of fish a year. The following are the sources from which the fish consumed in Nairobi comes:

 (in tons of fresh fish equivalent)
Domestic frozen lake fillets700 
Imported sea fish (fillets)50 
Domestic sea fish365 
Domestic iced lake fish450 
Dried lake fish from Magadi, Uganda, Tanzania, Lake Victoria1500 
 3065tons

At approximately 20 lbs., Nairobi per capita consumption is high for Kenya. As about half of the African population are Kikuyu, Embu, Meru and Wakamba who do not eat fish, and as large numbers of the Asians of the Hindu religion are vegetarians, the elements of the population who are fish eaters probably consume about 40 lbs. of fish per head per year (in fresh fish equivalent). This indicates that, unless a special sales drive is made, the possibilities of increasing consumption are small. Many of the Government administrators interviewed during the survey thought that Nairobi, similar to Mombasa, was inadequately served by fish traders at the present time. This is not so. There are already 42 licensed fishmongers with cold storage facilities in the area, dealing in fresh lake and sea fish transported to market on ice, plus about a half dozen fresh fish sellers in Nairobi Municipal Market. In addition, there are numerous grocery outlets selling frozen fish fillets. The fish buying pattern has changed with the shift to ‘supermarket’-type retailing. Many people were interviewed on their fish buying habits. The following is a resumé of the answers received:

EuropeansThe majority buy frozen, packaged, lake fish fillets on a regular basis. Convenience factors play a part, both in the selection of the product and of the source from which the fillets are purchased; the latter may be the nearest grocery, dairy or butcher shop or ‘supermarket’. Occasionally, when they entertain, the Europeans buy seafish or shellfish.
AsiansMany Asians also buy fillets; more often, however, they buy whole lake fish from Lake Victoria, whole sea fish and shell fish. Goans are the chief consumers of sea fish.
AfricansThe educated African civil servant has come to know tilapia fillets during his secondary school or university studies or in other fashion, and buys frozen lake fish fillets. Purchases of fillets are increasing among these consumers.
The working class African buys large quantities of dried lake fish at retail markets in the neighbourhood in which he lives. He also buys lake fish chilled on ice but is not accustomed to buying deep frozen whole fish. He will buy the latter as a rule only if it has been defrosted and put on ice and wood shavings, as this is traditionally done with Lake Victoria chilled fish. Except in rare instances, he does not buy sea fish. Africans who live inland but have been to the coast readily accept prawns and sea fish in hotels, etc.
Hotel/Restaurant TradeThis trade is growing with the expansion of tourism and is a very large outlet for lake fish fillets served as a regular menu item at lunch, dinner or tea. Sea fish, prawns and lobster normally are à la carte items. It has been estimated that the hotel trade takes about 40 per cent of the lake fish fillets.
Institutions, Schools, Hospitals, etc.Many of these institutional outlets are already regular purchasers of fish fillets. With an active sales campaign directed to the institutions, a further expansion of this trade is believed possible.
The Lake Fillet TradeThe Nairobi market for tilapia fillets decreased for some time because of the departure of European settlers and the British Army. The trade has picked up again and is expanding, since the emigration of the European population came to a halt. and as the tourist trade builds up, and an increasing number of educated Africans develop dietary habits similar to those of the Europeans.
The market share of individual firms is directly related to the efficiency of their sales organizations, advertising effort and quality of their packages, as well as to the size of retail and wholesale margins in the trade. Recently, Nile perch fillets from Uganda have been successfully launched on the Nairobi market, without leading to a reduction in the sale of tilapia. A sudden large increase in lake fillet production, however, could not be absorbed in Nairobi or elsewhere in the country and would necessitate increased efforts in the export trade.
The Fresh Lake Fish TradeThe sale of whole tilapia is smaller than some years ago because of the impact of increased distribution of fillets on the markets. Sales in the African markets still continue strong. The fish, however, is poorly displayed in these markets which have no proper washable display counters, no running water, and, in fact, none of the necessary facilities for the hygienic sale of fresh fish. Even so, recent attempts to sell whole thawed deep-frozen fish from the inland lakes have met with considerable success after a slow start. The African markets, as already pointed out, will not accept fish offered for sale in the frozen state. If it is first thawed and put into sawdust, even without ice, it is thought to have arrived at the market chilled and is then bought as fresh lake fish. The scope for increased sales of this fish is thought to be considerable; of such proportions, as a matter of fact, that the trade may impinge on the dried fish market.
The Fresh Sea Fish TradeFresh sea fish is sold in the Municipal Market, which mainly serves the Asian and European trade, and in butcher shops. The fish, it appears, is marketed mainly to Goans, Asians, hotel operators, and Europeans, in that order. The African markets take none. The packaging of frozen sea fish products is poorer than that of frozen fresh water fish and this tends to adversely affect their sales.
The Dried Lake Fish TradeThis trade is in the hands of 250 African fishmongers at Kariakor, Doonholm Rd., Shauri Moyo, Eastleigh, Westlands, and Pumwani markets. Some of these have canoes operating on the lakes but others buy their fish from traders. The main customers are the Luo and Abaluya. An appreciable number of members of the Wakamba and Kikuyu tribes, however, are beginning to buy smoked fish.
The fish are sold under very poor conditions. Except for temporary huts put up by he stall holders themselves, market buildings are in most cases non-existent. There are no stores with locks, only small boxes provided by the stall holders, for holding fish from one day to another, and these are not proofed against the weather or vermin. The stall holders obtain few services for the monthly rent of shs.40/- they pay. In some cases, they merely are allotted, for this rent, a small square of tarmac from which to sell their pro- ducts, and which they must keep clean. The Doonholm Road market is an example and, although exact figures could not be obtained, the income from this market alone was estimated at £2,000 per month. The problems were freely and frankly discussed by the expert with the City Council, who appreciated the need for the improvement of market facilities, but were faced with so many demands for funds for development projects that they could not give the fish market proposals immediate priority.

The total fish trade in Nairobi will expand only with the natural growth of existing outlets and as the non-fish eating tribes start to include fish in their diets. When this comes about, and there is no reason for thinking that it will not, the Nairobi market may have at least 100,000 extra fish eaters within its boundaries and another 3,000,000 within a 70-mile radius. The city is well-placed to serve as an entrepôt location for both sea and inland fish from which this new marketing area can be supplied.

10.1.2 Requirements for Market Improvement

  1. The Central Government, in conjunction with the Nairobi City Council, should draw up plans for the early improvement of the basic fish marketing facilities in the African areas, especially at Doonholm Road, Westlands, Eastleigh, and Pumwani Open Air Markets, where selling conditions are very poor, and where the facilities contrast sharply with the modern shopping facilities in the centre of Nairobi, in the new suburbs - such as Westlands-and in the Municipal Market in the centre. The Kariakor Market is very old and should be modernized.

    The new markets should have selling plinths of cement, a piped water supply to facilitate the sale of fresh fish, separate stores for dried fish as well as compartments that can be locked under the plinth, and a roof to give protection against the rain and sun. The new market at Thika could well serve as an example of what is required. Plans are available in the Fisheries Department for markets of different sizes to meet different local conditions. Several such markets have recently been built in Uganda and cost data are available. Musoma in Tanzania also provides a good example of a hygienic, well-organized, fish market.

  2. The Central Government should maintain contact with the City Council in regard to the development of the new £70,000 Mincing Lane wholesale fruit and vegetable market which will be rail-served and will have cold storage facilities. The latter are being sited in a large shed with 30' × 30' bays which can be used for individual cold stores, as required. The market is intended for the local wholesaling of fruit and for the export trade in fruit by refrigerated truck to Mombasa, and thence overseas. An ideal opportunity exists to incorporate facilities for the wholesale fish trade, to and from the coast and inland. Discussions with Nairobi Council officials indicated that concrete proposals along these lines would be welcomed.

    The leading fish processors on the coast and inland should be made aware of the proposed market facilities, since some of them may want to operate a cold store there. One firm already has a cold store in the vicinity.

    Facilities for the wholesaling of deep frozen and chilled fish should be built in conjunction with the cold stores. The sale of deep frozen fish in Nairobi on the West African pattern has started, as it has in neighbouring Uganda, and this trade can be expected to expand. In Nigeria, a similar trade has increased from a volume of 500 tons per year in 1962 to 25,000 tons in 1964. The fish there is also thawed before sale and is then consumed either fresh, or cured by hot-smoking in the traditional way, as domestic lake and sea fish are.

    Dried fish stores and benches, from which to sell the fish, should be incorporated in the market.

    The market is used by hundreds of vegetable wholesalers who come in daily by truck from the Kikuyu areas north of Nairobi. Transport of fresh and dried fish would give them a backload. Since these people are skilled traders, they would do everything to push the sale of fish in their home areas. A Kikuyu official in the market welcomed the idea of encouraging this business. He said that he had become a fish eater and that many young Kikuyu ate fish whenever they could obtain it.

  3. The wholesale market operating at Mincing Lane should be linked to retail selling facilities at the nearby Landies Road market. This is a good retail market which concentrates on selling fruit, vegetables and eggs. A policy decision is required from the Nairobi Town Council, which has hitherto not allowed the sale of fish in this market. The market is located in the middle of a thickly populated area. Removal of the restriction would increase local fish sales. Most people today, when they make their retail food purchases, want to obtain the bulk of their requirements in one place. If they cannot find certain commodities, they tend to buy substitutes. In the United Kingdom, fish is invariably sold by greengrocers. It seems unreasonable that this local restriction should continue to be enforced in Nairobi. If necessary, a section of the market could be set aside for the fish trade. The present vegetable stalls are big enough to accommodate refrigerated display cabinets. Also, the sale of fish might stimulate the sale of vegetables. The Fisheries Department should pursue this question further with the City Council.

10.2 Other Consumption Centres

10.2.1 Market Facilities

Many other fish markets were visited in the course of the survey. The markets at Eldoret, Kitale, Thika, and Nakuru were excellent. Others were very poor and had no facilities for the retailing or wholesaling of fish under hygienic conditions.

At Kisumu, the centre of the valuable Lake Victoria fish trade, the fishmongers have no facilities at all in the otherwise excellent Municipal Market. Even fresh fish has to be sold from mats on the ground and there are no facilities for washing the fish. In Mombasa, better facilities are needed for the wholesaling of dried fish at the McInnon Road Market. In Kericho, a fast-growing district headquarters, all fish is sold in the open, off the ground. The picture was the same at countless smaller markets.

As regards retailing, in some retail shops fish was displayed very poorly. Frozen fish cabinets were frequently observed to be stocked with old and dehydrated frozen fish, prawns, etc.

10.2.2 Requirements for Market Improvement

The expert recommends that:

  1. as a matter of priority, advice be given on the construction of a fish market for the sale of both fresh and dried fish in Kisumu (the Musoma Fish Market in Tanzania would be a good model to copy, and could be improved upon by the addition of stores for dried fish that can be locked);

  2. advice be given to Mombasa on improved facilities at McInnon Road Market;

  3. financial assistance be given to Malindi Town Council to enable it to improve its retail markets for fish. It is recommended that this assistance be in the form of an outright grant because of the burden the Council is already facing in connection with the repayment of the loan on the wholesale market. The retail markets compare very unfavourably with the excellent new wholesale market. The main retail market is located on the marine drive facing the wholesale market and, by comparison, presents a poor picture to the many tourists, visiting fisheries workers, and sport fishermen, who take an interest in the Malindi fishing industry. It is unsightly, unhygienic, the fish is inadequately protected from the sun, and the facilities require renovation. If the market is rebuilt, it is suggested that it be re-sited next to the fruit and vegetable market. This would enable the housewife to do most of her shopping in the same area. A small market on the design of the new market at Entebbe in Uganda would be suitable. Construction of the latter involved an expenditure of approximately £1,000. It has facilities for some 20 fishmongers selling fresh fish and for eight fishmongers selling dried fish. Further facilities for, say, ten fishmongers are also required at the lower Malindi market on the main Mombasa road and in the main African area. The present fish stalls are built of temporary materials and are not suitable for the sale of fresh fish. Concrete selling plinths, with running water for washing down, and a roof to give protection from the elements, are the minimum requirements. The improvement of retail fish selling facilities in Malindi would give a boost to sales through the wholesale market and should lead to improved profitability of the operations of the latter;

  4. to assess the size of the trade in fish, the existing pattern of (and trends in) distribution, the Fisheries Department should collect statistical information on the operations of the fishmongers licensed in each district and township. At present, there seems to be a variety of practices between different areas in the licensing of fishmongers. It may be found desirable, in due course, to arrange for the issue of a standard form of licence at a standard fee;

  5. a full-time Marketing Officer, when appointed, should survey the fish market requirements of the Mombasa suburbs, keep those of the Nairobi City fish markets under review, and carry out a detailed survey of all the upcountry district and local markets to see how they can be improved.

10.3 Stimulating Exports of Fishery Products

To create export markets, it is suggested that Kenya, perhaps jointly with Uganda which is also trying to develop export outlets for its fish, send a delegation overseas to make contact with potential importing countries. In the interest of emphasizing the importance of such a mission it would be appropriate if the delegation included the Minister for Natural Resources and the Minister of Commerce and Industry, or their deputies, the Chief Fisheries Officer and, say, two representatives of the different sections of the fish trade, one familiar with marine fish, and one with freshwater fish, distribution. Kenya's exports of fishery products will be in competition with exports of other countries, and the country must be prepared to actively promote her products overseas. At any rate, the country cannot expect buyers to come looking for fish in Kenya, when alternative sources of supply may be more readily available.

Possible foreign markets for Kenya's fishery exports are in Mauritius, which imports 1,000 tons of dried fish a year, and in Ceylon, which imports 34,000 tons a year (the landed price of which is £125 per ton). Since the Kenya inshore species are known in these countries, it is recommended that Kenya make a serious effort to penetrate these markets. Other outlets, such as Hong Kong (which already imports small quantities from Kenya), Japan, Italy and Germany, also merit investigation, especially in connection with the negotiation of trade agreements. Kenya has adverse trade balances with all these countries; if they were to import fish, the trade deficits could be reduced to some extent. As already pointed out, excellent sea communications exist between Mombasa and all parts of the world.


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