Reflections on Supplier Entry Barriers to Domestic Retail Markets: The Case of Food Processing Firms in Kenya

This paper examines challenges for Kenyan food processing firms in the ‘modern’ domestic supermarket sector, and thereby distinguishes itself from an increasing number of studies that have explored developing country suppliers in global value chains (GVCs). The paper also differs by focusing on food processing businesses rather than on smallholders and farmers and thus adds to our knowledge on the possibilities for economic diversification and value added. The paper is based on survey material and interviews with some of the largest food processors in Kenya. It pinpoints how the requirements these businesses must meet for domestic supermarkets increasingly mimic those often stressed in the export sector. Consequently, domestic supermarkets are often considered out of reach even by larger Kenyan food processors.