The Rise of KDF’s Supermarket Chain Generating Sh1 Billion in Turnover

The Kenya Defence Forces (KDF) established the Defence Forces Canteen Organization (DEFCO) in 1973, initially known as the Armed Forces Canteen Organization (AFCO).

Over the past five decades, DEFCO has grown into a critical resource for KDF personnel and their families stationed across the country. With more than 20 branches strategically located in major cities and towns like Nairobi, Eldoret, and Kisumu, DEFCO ensures convenient access to essential goods and services. Understanding the challenges faced by families with deployed soldiers, DEFCO offers a lifeline. Functioning as a self-sustaining supermarket chain, DEFCO procures products directly from manufacturers, passing on cost savings to its members through competitive pricing.

This financial independence allows DEFCO to operate without relying on external funding or shareholders. DEFCO’s success story extends beyond its core function. The organization has transformed its Embakasi location from a modest outlet into a comprehensive mall. This expansion provides a wider range of services including supermarkets, restaurants, fuel stations, cafeterias, and Mpesa shops. Notably, DEFCO has not only weathered the economic hardships brought on by the COVID-19 pandemic but has also emerged stronger. This resilience has translated into significant job creation, employing hundreds of Kenyans across various sectors.

Chief of Defence Forces Francis Ogolla recognizes DEFCO’s vital role in national development. Through job creation and strategic partnerships, DEFCO contributes to the economic well-being of the surrounding communities. With a workforce exceeding 765 staff members and a dedicated management team overseeing regional operations, DEFCO remains true to its motto: “Serving those who serve.” Beyond its retail activities, DEFCO manages 29 apartments at Ole Dume Suites.

DEFCO’s financial strength is evident in its annual turnovers exceeding Sh 1 billion. The organization strategically reinvests a portion of its earnings to support its core functionalities and contribute to the Kenya Defence Forces Old Comrades Association (DEFOCA). These profits fund various projects within the KDF and support veterans through DEFOCA. Additionally, DEFCO contributes to the success of KDF sports teams by remitting a regular sports levy to military headquarters for distribution.