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Naivas International, the leading retailer founded by the late Kenyan businessman Peter Mukuha Kago, is set to open two additional branches in Kenya to solidify its position as the country’s largest retail player.
The new stores, scheduled to launch within a month, will elevate Naivas’ branch network across the nation to 98, inching closer to its target of 100 stores.
The retail chain, now under the stewardship of the Mukuha family, is vigorously vying for market share growth against its competitors.
The first outlet will be inaugurated in Malindi near the airport this Friday, followed by the opening of the second store in Kakamega before the end of August. These new branches will complement the recent launch of another store at the Kisii Naivas Mall, taking over the former location of Kisii Hotel.
Naivas International, established in 1990 by the late Kenyan tycoon Peter Mukuha Kago, has long held a dominant presence in Kenya, boasting an extensive retail network nationwide.
Its latest expansion initiative comes on the heels of the news that Mambo Retail, an investment vehicle linked to IBL Group, a prominent Mauritius conglomerate led by Mauritian tycoon Arnaud Lagesse, plans to acquire an additional 11-percent stake in Naivas.
To facilitate the acquisition, IBL Group will subscribe to additional shares in Mambo Retail, thereby securing a majority 51-percent stake in Naivas, making it the controlling shareholder.
The Mukuha family, heirs of the late Kenyan retail tycoon Peter Mukuha Kago, stands to receive $41.7 million from the sale of the additional 11-percent stake, in a move that is primarily driven by a pursuit of profitability and market share growth.
Naivas has demonstrated remarkable financial resilience in recent times. In the first nine months ending on March 31, 2023, the Kenyan retailer recorded a profit of Ksh2.1 billion ($15.25 million), a substantial increase from the previous fiscal year.
Despite the challenges posed by the COVID-19 pandemic, Naivas’ success can be attributed to its robust business model, encompassing a network of 96 outlets across 20 cities and towns in Kenya, and its modern grocery retail offerings in prominent urban centers nationwide.
The strategic expansion and acquisition plans are expected to further strengthen the retailer’s market position and growth prospects.
