Kenya’s Naivas aims to grow its store network to 200 outlets amid rising consumer demand
.Naivas plans major expansion as profits rise in 2025
KENYA – Naivas Ltd., Kenya’s largest supermarket chain, intends to open up to 10 new stores each year to reach a total of 200 outlets, expanding beyond its current 111 locations.
The expansion plan comes as the company reports strong financial results, with net profit climbing 43.4% to US$16.1 million for the financial year ending 2025.
Revenue for the same period increased by 21.6%, reaching approximately US$751.4 million, reflecting consistent consumer spending despite ongoing inflationary pressures in the country.
Naivas expanded its footprint to 108 stores during the year, extending its presence in both major cities and mid-sized towns to capture a wider customer base.
The retailer is introducing a new Enterprise Resource Planning system aimed at streamlining operations and enhancing efficiency across all its outlets.
Parent company IBL Ltd., which holds a 51% stake in Naivas, reported that East Africa now accounts for 37% of the group’s total revenue, with Naivas driving most of that regional contribution.
The retail division’s operating profit grew by 79%, with IBL Group CEO Arnaud Lagesse attributing the improvement to the company’s regional growth strategy.
Financial statements indicate a significant change in Naivas’ equity, shifting from a negative US$0.9 million to a positive US$202.2 million, suggesting possible restructuring or revaluation of ownership by IBL.
Total expenses for Naivas rose by 21.3% to about US$735.8 million, while profit attributable to owners moved from a prior-year loss to US$9.0 million, signaling improved profitability.
The company’s performance is being closely watched as it continues to expand its operations while navigating economic pressures in Kenya, positioning Naivas as a central part of IBL’s East African strategy.
Andreas von Paleske, Naivas’ CEO, emphasized that the expansion reflects both strong domestic demand and the company’s aim to increase market penetration across urban and smaller towns.
The developments highlight a period of restructuring and growth for Naivas, indicating that the chain is strengthening its financial and operational foundations while preparing for further regional expansion.
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