Supermarket chain Naivas’ net profit for the year to June surged 43.4 percent to Sh2.42 billion (Sh861.69 million Mauritian rupees) on the back of increased sales and continued expansion.
The growth in net profit was from Sh1.68 billion (600.73 million Mauritian rupees) posted in the preceding similar period, when it fell by 18 percent.
Listed Mauritian conglomerate IBL Group, which leads a consortium that owns a majority stake in Naivas, has reported that the retailer’s sales grew by 21.6 percent to 40.28 billion Mauritian rupees (Sh113.48 billion) during the review period from 33.12 billion Mauritian rupees (Sh93.31 billion).
This marks a bright spot in an industry that has in recent years witnessed the collapse of leading retailers—Nakumatt and Tuskys. Naivas has been on the expansion trail, having closed the financial year with 108 branches from 66 in 2020.
The Sh113.48 billion sales mean that on average, each outlet was generating at least Sh1 billion.
“Naivas increased its turnover, led by new store openings and increasing consumer demand. Despite early headwinds in 2025, it pursued its expansion and is now operating 108 outlets in strategic locations in Kenya,” said IBL Group in the latest annual report.
“It continued investing in technology to support its growing network and operational goals. An ERP (Enterprise Resource Planning) is optimising costs and aligning operations across Naivas’ branches, allowing it to deliver faster, more personalised shopping experiences.”
Naivas’ sales have more than doubled from Sh54 billion in 2020, cementing its place as one of Kenya’s largest firms.
The Sh113.48 billion sales would make it the seventh-largest firm at the Nairobi Securities Exchange on revenues, behind Safaricom, Kenya Power, KCB, Equity Group, East African Breweries and TotalEnergies— when compared with highest-revenue generating companies listed on the bourse.
The retailer’s eexpenses rose by 21.2 percent to Sh111.06 billion.
IBL owns an indirect stake of 37.33 percent in Naivas, held through an investment vehicle known as Mambo Retail which is co-owned with French fund Proparco and German fund DEG. IBL holds a 73.2 percent stake in Mambo Retail, which in turn owns a 51 percent stake in Naivas.
In August 2022, IBL and the two funds acquired a 31.5 percent stake in the retailer from a consortium comprising the International Finance Corporation (IFC), DEG and private equity firms Amethis and MCB Equity Fund for a consideration of $119.68 million (Sh15.5 billion at today's exchange rate).
The 2022 transaction was followed up with an additional 11 percent stake in July 2023 for an estimated $41.7 million (Sh5.38 billion) to give IBL and its partners a controlling ownership.
Naivas’ co-founder and managing director David Kimani stepped down from his role at the end of October this year.
Mr Kimani was replaced by Andreas von Paleske, who had served as the chief of strategy over the past eight years. He becomes Naivas’ first non-family CEO in its 35-year history.
Mr Kimani, his brother Simon Mukuha (who died in 2019) and their father, Peter Mukuha (who died in 2010), were deeply involved in the running of Naivas until 2020 when the family sold part of its stake to external investors.
In February 2020, a consortium of investors led by the French private equity firm Amethis bought a 30 percent stake in Naivas, leaving the Mukuhas with a controlling stake of 70 percent.
Amethis, an investment fund manager dedicated to the African continent, sold its stake in June 2022 to a consortium led by IBL. The IBL-led consortium followed up the deal with another acquisition in 2023, giving it a controlling stake in the retailer.
Naivas has links with Tuskys—a giant retailer that grew from humble beginnings before bursting in an iceberg of debts.
Tuskys’ founder, the late Joram Kamau, left one of his business premises in Rongai Nakuru to his two nephews— David Kimani and Simon Mukuha—who teamed up with their father and sisters to grow the business into Naivas.
