Nairobi — Brand valuation consultancy firm, Brand Finance has reported an 8 percent decline in the value of Kenyan brands featured in the Brand Finance Africa 150 2021 ranking with total firms accumulating a total brand value of USD1.4 billion, up from USD 1.5 billion recorded in 2020.
The firm ranks over 5000 of the world’s biggest brands across all sectors and geographies including the top 150 most valuable brands in Africa.
2021 ranking featured seven Kenyan brands with Kenya Commercial Bank, Equity Group, and Co-operative Bank of Kenya securing positions in the banking sector and Tuskerbeer brands making its debut appearance in the ranking.
Walter Serem, Regional Manager East Africa, Brand Finance Africa, said in a statement that the COVID-19 pandemic accounted for the huge downturn in the brand value even as he called for the adoption of new technologies and collaboration in order to bounce back from the economic downturn.
"Kenya is still underrepresented in the Brand Finance Africa 150 ranking with only seven brands making the cut, which account for just 4% of the total brand value," he said.
KCB and Equity Bank were recognized for posting a twelve and eight percent increase in value with the report attributing the growth to the successes in the banking sector.
"The sector saw a cumulative brand value growth of 10 percent year-on-year. These brands go against the global trends in the banking sector where most have lost brand value. The three banks have all been involved in takeovers and acquisitions over the course of the year, improving their reputation and slowly expanding their footprints across the country and continent respectively," the report added.
Serem exuded confidence in the sector’s potential to produce Kenya’s next pan-African brand, following in Safaricom’s footsteps – with its recent landmark acquisition of a joint license and successful launch into the Ethiopian market."
Overall, noted that the total brand value of Africa’s top 150 most valuable brands dropped by 12 percent from USD 45.5 billion to USD 40.0 billion in 2021.
Jeremy Sampson, Managing Director, Brand Finance Africa attributed the decline to the lockdown and significant unrest across the continent.
"Following the pandemic, African brands will need to search for opportunities to make up lost ground. By embracing new technologies and collaboration, the continent can propel its recovery and bounce back from the extraordinary situation the world has found itself in," he said.