On the Beach in Malindi town there are a huge number of stone and wooden shacks that collectively are called the Curio Village.
Some long time friends of mine have stalls here on the market. The picture here is of my mate Eric in front of his shop No 38. If you want to buy anything of this young chappie don't go fist thing in the morning as he still might be sleeping off his Mnazi hangover! If he's not around I'm sure you'll get a good deal from Njoroge in the neighbouring shop.
What to buy: Paintings, Batik, Wooden carvings, Sopapstone.
What to pay: Depends on you haggling skills.
The handcraft cohoperative is the home of truly beautiful carved wooden objects. There are several cohoperatives in town - only one being state run. It's the one that sells carvings of much better quality than the others, and you can also see the artisans at work.
What to buy: The most beutful things I saw were some little tables with carved elephants - and some really peculiar chairs in Lamu style: you can take them apart in two pieces so that they are easy to carry on the plane.
What to pay: Not too expensive, considering the quality. The price depends on your bargaining skills
The only shop I ever used in Malindi for toiletries bottles of cold water and the all important Big G for when you've got a nice bunch of miraa