Monday, April 29, 2024

Inside supermarket chain operated by KDF with annual turnover of Sh. 1 billion

The Defence Forces Canteen Organization (DEFCO), operated by the Kenya Defence Forces (KDF), has been in existence since April 1973.

It was formerly known as the Armed Forces Canteen Organization (AFCO), and has served military personnel and their families for 50 years.

DEFCO was established to offer services to Kenya Defence Forces members and their families nationwide. It now operates over 20 branches across the country, with major locations including Nairobi, Eldoret, Gilgil, Isiolo, Garissa, Lamu, Mombasa, Nakuru, Nanyuki, Wajir, and Kisumu.

“If you look at the life of a soldier, they will not always be available to their families. This is one of the ways that DEFCO takes care of the family units by provision of services at the proximity of any barrack,” said a senior ranking individual within the KDF.

DEFCO operates as a financially independent supermarket chain, with no external capital from the ministry of defence or shareholders influencing its operations for private gain.

DEFCO supermarkets source their products directly from manufacturers. This allows them to offer competitive prices that are often lower than those found in other stores.

The supermarket chain has grown through leaps and bounds over the years and it now boasts 4 modern malls, 34 outlets, 24 shoppets, 19 fuel stations, 14 cafeterias and multiple Mpesa shops.

“When I started shopping at DEFCO Embakasi it was a very small outlet. Now its a fully fledged mall with everything from the supermarket to restaurants,” said Capt. Collins Maroa of the KDF.

Amount of compensation money families of fallen KDF soldiers get

Notably, when many businesses were shutting down during the Covid-19 pandemic, DEFCO withstood the test of time and emerged even stronger.

Chief of Defence Forces (CDF) Francis Ogolla, speaking during the launch of the newly constructed DEFCO branch at the Kenya Air Force Forward operating Base (FOB), revealed that DEFCO is also a key employer to hundreds of Kenyans.

“DEFCO is a key contibutor to national development, achieved by the creation of opportunities through employment and partnerships, and I believe the existence of this store will open doors to local services, eventually benefiting the community.”

The Managing Director, Brigadier Peter Limo, stated that the supermarket employs over 765 staff. The operations are overseen by 11 area managers across different regions.

DEFCO also manages 29 apartments at Ole Dume Suites near Kilimani estate. With their focus on serving those who serve, DEFCO has undoubtedly experienced exponential growth over the years. Reportedly, DEFCO makes annual turnovers exceeding Sh. 1 billion.

These earnings are ploughed back to the military and are used to fund some of its activities. Another poirtion of DEFCO’s earnings are donated to the Kenya Defence Forces Old Comrades Association (DEFOCA).

“Part of the profits realised by DEFCO are remitted to the services and DEFOCA in support of various projects. Defence Forces Sports teams have excelled in various disciplines, and DEFCO has contributed to this in terms of a sports levy remitted at regular intervals to DHQ for distribution,” wrote the Ministry of Defence.

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