News recently circulated that the family of late Kenyan tycoon Nelson Muguku proposed to sell Waterfront Mall in Karen for Ksh 20 billion ($185 million), a mall they had invested Kshs 2.6 billion (about $28 million at the time) to build in 2014.
A local news outlet reported that a brief document advertising the asset’s sale revealed the Mugukus’ willingness to complete the deal upon receiving an acceptable offer and conducting due diligence. It added that whoever acquired the mall would also receive the parcel of land on which it sits, estimated to be approximately 50 acres.
However, David Muguku, son to the late billionaire Nelson Muguku and managing director of Waterfront Mall, has debunked the news.
“We would like to dispel this information and let the public, our clients and tenants know that the information is false and does not represent the position of the management,” David was quoted as saying by Kenyan Wall Street.
The mall had two major tenants from South Africa, Game and Shoprite. However, the 2020 COVD-19 outbreak led Shoprite, a retail giant, to relocate its businesses from all over Africa back to its home country.
The Mugukus signed up Shoprite as a major co-anchor tenant in 2018. That was barely a year after signing Game as its first anchor tenant, Kenyan Wall Sreet, reported. The agreement was a 10-year term of lease, which did not provide for termination.
However, in April 2020, Shoprite announced the closure of its Karen branch, citing reduced foot traffic due to the pandemic. This prompted the Mugukus to sue the retailer over rental obligations amounting to KSh. 520 million, Estate Cloud reported.
The Mugukus
The Muguku family are heirs to the fortunes of Muguku, who was one of the wealthiest people in Kenya. He began his entrepreneurial journey in 1965 with a poultry farm that transformed into an empire, serving major markets in the country.
He also invested in several stocks on the Nairobi Stock Exchange (NSE). Notable was his 6-percent stake in Equity Bank before its listing on the NSE, making him the majority shareholder.
In 2014, the Muguku family began constructing phase one of the mall. The family also owns Crossroads Mall in the same area.
