Naivas Supermarket has reported an outstanding 43% year-on-year surge in its net profit, which reached KES 2.4 billion for the year ended June 2025. This impressive growth marks a significant rebound from an 18% decline recorded in the previous year. The performance was primarily driven by 22% growth in sales to KES 114 billion. This turnaround also marks a bright spot for Kenya’s retail sector which has seen the collapse of former giants like Nakumatt and Tuskys in recent years.
The retailer’s success is firmly rooted in its aggressive expansion strategy. Naivas concluded the financial year with 108 branches, a substantial increase from the 66 branches it operated in 2020. With KES 114 billion in revenue, a textbook calculation shows that each store generated an average of KES 1 billion in sales.
“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. It continued investing in technology to support its growing network and operational goals. An ERP (Enterprise Resources Planning) is optimizing cost and aligning operations across Naivas’ branches, allowing it to deliver faster, more personalized shopping experiences.” – IBL Group.
As a result, Naivas sales have more than doubled since 2020, cementing its position as a Kenyan corporate leader and its revenue would place it as the seventh-largest firm by revenue on the Nairobi Securities Exchange were it a listed firm.
The ownership of Naivas has also undergone a major transformation, moving from family control to a consortium led structure. IBL Group, which holds an indirect 37.33% stake through the investment vehicle, Mambo Retail, leads this consortium alongside French and German funds. They first acquired a significant stake in August 2022, followed by an additional purchase in July 2023 for an estimated USD 41.7 million, ultimately securing a controlling 51% ownership. This transition culminated in a landmark leadership change, with co-founder and managing director, David Kimani stepping down in October. He was replaced by Andreas von Paleske, the company’s former chief of strategy.
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