Naivas Limited

Naivas Supermarket, often referred to simply as "Naivas", is the largest supermarket chain in Kenya, with 62 outlets as of March 2020.[2]

Naivas Supermarket Limited
Private Family Owned
IndustryRetail
FoundedJuly 27, 1990 (1990-07-27)
HeadquartersSameer Industrial Park
Nairobi, Kenya
Number of locations
62 (February 2020)
Key people
  • Simon Gashwe Mukuha (Chairman)
  • David Kimani Mukuha (Director)
  • Willy Kimani (Chief Commercial Officer)
  • Peter Mukuha (Chief Operations Officer
ProductsFood and Non Food Grocery
Number of employees
5,000+ (October 2019)[1]
WebsiteHomepage

Location

The company headquarters, as well as the company's warehouses, are located in Sameer Business Park, in the Industrial Area of Nairobi, the capital and largest city of Kenya.[3] The coordinates of the headquarters of Naivas Limited are: 01°19'36.0"S, 36°52'04.0"E (Latitude:-1.326667; Longitude:36.867779).[4]

Overview

Naivas is headquartered in Nairobi, with retail outlets in many urban centres in the country. The chain is the country's largest supermarket chain followed by competitors Tuskys. Naivas recently opened a state of the art food market store, the first in East Africa. In July 2018, the company hired Andreas von Paleske, as an advisor to assist the business with its strategy and operations. This culminated in bringing experienced African private equity firm Amethis on board for a minority stake.[5] At that time, Naivas Limited maintained 47 stores in Kenya.[6] The supermarket chain opened its 53rd store in Kenya in July 2019 at Rongai, Nakuru County, with plans to open two more stores the same year.[7]

History

Naivas Limited was registered on 24 July 1990. It previously traded as Rongai Self Service Stores Limited, serving mainly in Rongai in Nakuru County. The company name was changed later to Naivasha Self Service Stores Limited, before re-branding to the current Naivas Limited, in 2007.[3][8][9]

In August 2013, the Johannesburg Stock Exchange-listed Massmart, a subsidiary of retail giant Walmart, offered to acquire a 51 per cent stake in Naivas at a cost of KSh3 billion, giving Massmart a controlling interest in the retail chain.[10] The bid triggered a feud at family-owned Naivas, and some family members asked a court to block the sale.[11] In October 2013, Naivas management stated that they were no longer selling a controlling stake to Massmart.[12] On 16 July 2014, Naivas opened a store in Garissa, making it the first major retailer to open an outlet in the town. This was Naivas' 31st branch in Kenya.[13]

Ownership

Naivas Limited is a privately owned company, whose shares are held by the descendants of its founder Peter Mukuha Kago, who died on 6 May 2010.[14] The table below depicts the shareholding as of November 2014:[15]

Naivas Limited Stock Ownership As of November 2014
RankName of OwnerPercentage Ownership
1David Kimani25.0
2Simon Gachwe25.0
3Linet Wairimu15.0
4Grace Wambui15.0
5The Estate of Peter Mukuha Kago20.0
Total100.00

In February 2020, the Competition Authority of Kenya (CAK) approved the acquisition of 30 percent of Naivas shareholding by the French equity firm Amethis Finance at an undisclosed sum.[16] In April 2020, Business Daily Africa reported that the International Finance Corporation had acquired a minority state in the company for US$15 million (KSh1.5 billion). As of that date the new shareholding in Naivas Limited, is as illustrated in the table below:[17]

Naivas Limited Stock Ownership As of April 2020
RankName of OwnerPercentage OwnershipNotes
1Mukuha Family
2Amethis Finance30.0
3International Finance Corporation
4Others
5The Estate of Peter Mukuha Kago
Total100.00

Branches

As of December 2017, the supermarket chain maintained forty-three branches across Kenya with the Nairobi south c branch being the latest.[18] By February 2018, that number had risen to 45, with the latest addition being the Capital Centre Mall Branch, along Mombasa Road in Nairobi.[19] In February 2020, the supermarket chain is expected to open its 64th store as the anchor tenant in the mega city mall, in Kisumu.[20]

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See also

References
  1. Annie Njanja (16 October 2019). "Naivas to open four new stores". Business Daily Africa. Nairobi. Retrieved 23 March 2020.
  2. Claudia Lacave (23 March 2020). "Kenya's Naivas: Setting up shop for foreign investors". Paris, France: The African Report. Retrieved 23 March 2020.
  3. Naivas Limited (2 November 2016). "Naivas Limited: Company History". Nairobi: Naivas Limited. Retrieved 2 November 2016.
  4. Google (2 November 2016). "Location of the Headquarters of Naivas Limited" (Map). Google Maps. Google. Retrieved 2 November 2016.
  5. Otieno, Bonface (26 July 2018). "Naivas hires expert to guide expansion". Business Daily Africa. Nairobi. Retrieved 27 July 2018.
  6. Otieno, Bonface (15 July 2018). "Naivas Mombasa branch increases count to 47 stores". Business Daily Africa. Nairobi. Retrieved 27 July 2018.
  7. Annie Njanja (7 July 2019). "Naivas opens Rongai branch in expansion spree". Business Daily Africa. Nairobi. Retrieved 29 February 2020.
  8. "Company Overview of Naivas Limited". BusinessWeek Investing. 2 November 2015. Retrieved 2 November 2016.
  9. Eric Matara (27 August 2019). "How Naivas grew from a village shop to a supermarket chain". Daily Nation. Nairobi. Retrieved 23 March 2020.
  10. Kiragu, Peter (23 August 2013). "Massmart Confirms Naivas Bid, Targets Fastfood Entry". The Star (Kenya). Retrieved 13 October 2014.
  11. Reuters, and Business Daily Reporter (16 October 2013). "Confusion Stalks Naivas Buyout Talks With South Africa's Massmart". Business Daily Africa (Nairobi). Retrieved 13 October 2014.
  12. Miriri, Duncan (16 October 2013). "Kenyan Retailer Naivas Says Talks With Wal-Mart Unit Are Off". Reuters. Retrieved 13 October 2014.
  13. Mutegi, Mugambi (16 July 2014). "Naivas Opens New Front With Garissa Outlet". Business Daily Africa. Nairobi.
  14. James Kariuki (7 August 2013). "Naivas In Family Feud Over Sale To South Africa's Massmart". Business Daily Africa. Nairobi. Retrieved 13 October 2014.
  15. Wanjiru Macharia (3 November 2014). "Big Brother Loses As Court Battle for Naivas Ends". Business Daily Africa. Nairobi. Retrieved 3 November 2014.
  16. Jon Mutua (28 February 2020). "Competition watchdog approves sale of Naivas stake". Business Daily Africa. Nairobi. Retrieved 29 February 2020.
  17. Victor Juma (15 April 2020). "World Bank arm buys Sh1.5bn Naivas stake". Business Daily Africa. Nairobi. Retrieved 15 April 2020.
  18. Mutegi, Mugambi (26 December 2017). "Naivas moves for Nakumatt clients at rival's vacated space". Business Daily Africa. Nairobi. Retrieved 24 December 2017.
  19. Ngugi, Brian (8 February 2018). "Naivas takes over Uchumi space at Capital Centre Mall". Business Daily Africa. Nairobi. Retrieved 10 February 2018.
  20. Ngugi, Brian (19 April 2018). "Naivas takes space at new Kitengela mall in expansion drive". Business Daily Africa. Nairobi. Retrieved 21 April 2018.

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