Kenya’s Naivas opens Ruaka Mall outlet as store count reaches 114

KENYA – Naivas Supermarket has opened its 114th outlet at Ruaka Mall, adding a new store in one of Nairobi’s rapidly expanding residential and commercial zones and extending the retailer’s footprint within the capital.

The Ruaka opening comes weeks after the chain launched its 112th outlet in Mihango, Nairobi, as part of a rollout that has seen Naivas continue to enter growing neighbourhoods while maintaining a measured pace of expansion.

According to the company, the Ruaka store increases access to its full product range for local shoppers while contributing to job creation and strengthening links with suppliers operating within its distribution network.

Naivas’ recent store launches align with an expansion plan announced in November under which the retailer aims to open up to 10 new outlets each year as it works toward a long-term target of 200 stores across Kenya.

At the time the strategy was outlined, Naivas operated 111 outlets nationwide, showing its focus on a mix of large urban centres and emerging towns rather than concentrating solely on established retail hubs.

Financial performance

For the financial year ending 2025, Naivas reported a 43.4 percent increase in net profit to US$16.1 million, while revenue rose by 21.6 percent to US$751.4 million, indicating continued consumer spending despite inflationary pressures.

During the same period, the supermarket chain expanded its network to 108 stores, a move that management said helped the business reach additional customer segments across different regions.

Naivas is also in the process of rolling out a new Enterprise Resource Planning system, which is intended to improve coordination, stock management, and operational efficiency across its growing store base.

IBL Group context

Parent company IBL Ltd., which owns a 51 percent stake in Naivas, reported that East Africa now contributes 37 percent of its total revenue, with Naivas accounting for the largest share of that regional performance.

IBL’s retail division recorded a 79 percent rise in operating profit, with Group Chief Executive Officer Arnaud Lagesse attributing the increase to continued regional growth and wider market penetration.

Financial disclosures show that Naivas moved from a negative equity position of US$0.9 million to a positive US$202.2 million, a shift linked to internal changes in structure or valuation.

Over the same period, total expenses increased by 21.3 percent to US$735.8 million, reflecting the higher costs associated with operating a larger store network, while profit attributable to owners rose from a loss in the previous year to US$9.0 million.

Naivas Chief Executive Officer Andreas von Paleske said the expansion reflects sustained domestic demand and the retailer’s intention to deepen its presence in both urban areas and smaller towns as it continues to navigate Kenya’s economic environment.

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