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Naivas International, a leading retailer founded by the late Kenyan businessman Peter Mukuha Kago, plans to open new supermarket chains in Kenya in the coming weeks as part of a concerted effort to drive continued retail expansion while increasing market share.
The move will see it increase its market share in Kenya in line with its strategic expansion plans, as it continues to take up prime space vacated by competitors, as well as new strategic locations in areas with promising prospects.
The new stores will bring Naivas’ branch network across the country to 90, up from 86 after it opened new outlets in Kayole and Naivasha along the Nairobi-Nakuru Highway in June.
The strategic move will also help it maintain its market leadership against another supermarket chain, QuickMart, which has opened 10 branches in the past 10 months.
The retailer revealed that the first of four new locations will open in the coming weeks at Greenwood City Mall in Meru County on Oct. 31, with the second store opening a week later in Kahawa Sukari in Kiambu County.
The fourth store, set to open in November, will be located on Ojijo Road in Nairobi’s Parklands.
Naivas Supermarket is Kenya’s largest supermarket chain. It is based in Nairobi and was founded by Kago in 1990.
The late businessman’s family received an estimated Ksh3.7 billion ($31.5 million) from the sale of an 8.5-percent stake in Naivas in a deal valued at Ksh45.6 billion ($379 million) in September.
The transaction, which increased the shareholdings of IBL Group, Proparco, and DEG to 40 percent, is part of the Kenyan Mukuha family’s strategic drive to maximize the value of their retail investment.
Despite selling a portion of its stake to investors, the Mukuha family still owns 60 percent of the retailer, which is led by David Kimani Mukuha, who has been in charge since Kago died 12 years ago.
Under the leadership of the multimillionaire Mukuha family, the family business, which operates 86 outlets in 20 cities and towns across Kenya, is one of the few retailers that has continued to deliver impressive financial performance despite the disruption caused by the COVID-19 pandemic.
Naivas reported a profit of Ksh2 billion ($16.5 million) at the end of its fiscal year 2021, up from Ksh1 billion ($8.25 million) the previous year. The rise in earnings can be attributed to an increase in net sales from Ksh54 billion ($445.5 million) to Ksh65.1 billion ($537.12 million).
