Naivas posts US$16.1M profit in FY2025 as revenue hits US$751M

KENYA – Naivas Supermarket, Kenya’s biggest retail chain, reported a 43.4% rise in net profit to about US$16.1 million (KSh 2.45 billion), driven by a 21.6% increase in revenue to roughly US$751.4 million (KSh 114.45 billion) for the financial year ending 2025.

The retailer achieved this growth despite ongoing inflation and fiscal pressures in Kenya, which its parent company, IBL Ltd, highlighted as major risks in its annual report.

Naivas expanded its network to 108 stores across the country and deepened its reach in both urban and mid-sized towns during the year.

The company is also rolling out a new Enterprise Resource Planning (ERP) system aimed at improving operational efficiency across its outlets.

According to IBL’s integrated report, East Africa now contributes 37% of the group’s total revenue, with Naivas serving as the primary driver of that performance.

The retail cluster’s operating profit climbed 79%, with IBL Group CEO Arnaud Lagesse saying the company’s regional expansion strategy is delivering tangible results.

IBL credited Naivas with playing a key role in transforming the group from a Mauritius-based business into a regional leader.

Ownership and Financial Shift

A review of IBL’s financial statements shows a major restructuring within Naivas, with equity attributable to owners moving from a negative US$0.9 million (KSh 0.13 billion) to a positive US$202.2 million (KSh 30.77 billion).

This shift suggests IBL may have consolidated its control through a revaluation of its existing stake or a related ownership transaction.

Overall expenses rose by 21.3% to around US$735.8 million (KSh 112.05 billion), while profit attributable to owners improved from a loss the previous year to US$9.0 million (KSh 1.38 billion).

Expansion and Leadership Transition

In October, Naivas opened its 111th store at OUR Mall along Magadi Road in Nairobi, marking another phase of its ongoing expansion.

During the launch, Operations Manager Stanley Kariuki said the new outlet was designed to meet the community’s growing need for affordable and convenient shopping options.

The store opening coincided with Naivas’ 35th anniversary celebrations and the launch of its annual Kikwetu Campaign, which rewards shoppers with home appliances, motorcycles, and vehicles.

Naivas continues to source more than 90% of its products locally, supporting domestic manufacturing, small businesses, and job creation.

The company also announced a leadership change, appointing Andreas von Paleske as Chief Executive Officer to replace long-serving head David Kimani Mukuha.

Von Paleske, who joined Naivas in 2017 as Chief Strategy Officer, has been instrumental in securing investment from Amethis Private Equity and IBL Group, partnerships that funded the retailer’s rapid expansion and reinforced its position in Kenya’s competitive retail market.

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