Digital transformation has become a critical factor influencing business dynamics globally, including in the retail sector of North Africa. This study aims to explore its impact specifically within Kenya. A survey research approach was employed, gathering data from a representative sample of retail businesses across various sectors within Kenya. Data analysis focused on qualitative content and quantitative proportions. Digital transformation has significantly increased online sales by 45% among surveyed retailers in Kenya, indicating its substantial impact on market penetration. The findings suggest that digitalization is pivotal for enhancing retail competitiveness in North Africa, particularly in terms of expanding customer reach and improving operational efficiency. Retailers should prioritise digital investment to adapt to current market trends and maintain competitive edge. Government support can also facilitate this transition through policy incentives.