Naivas marks 110-store milestone, looks ahead

KENYA – Naivas Supermarket continues to strengthen its position as Kenya’s top retail chain, reflecting on its journey after reaching 110 outlets.

While the company has grown significantly, executives emphasize that stability and responsible expansion remain their priorities.

Chief of Operations Peter Mukuha highlighted that success is not just about opening more stores but ensuring a solid foundation. “Retail isn’t just about adding numbers. It’s about keeping our commitments to suppliers and supporting our employees,” he said.

Naivas employs 12,000 permanent staff, making it one of Kenya’s largest private-sector employers. Chief Human Resources Officer Tim Kajume stated that the company is committed to career growth, ensuring employees have long-term development opportunities rather than just jobs.

Naivas’ newest outlet at Tatu City in Kiambu County represents another step in its growth. However, some observers question whether the expansion pace is sustainable, citing past collapses of major retailers like Nakumatt and Tuskys.

Chief of Strategy Andreas von Paleske reassured that Naivas is taking a careful approach. “We have strong ambitions, but our main focus remains Kenya. Every expansion decision is deliberate,” he explained.

The supermarket chain traces its beginnings to a small family-run store in Rongai, Nakuru County, over 35 years ago. Early experiences in Nairobi’s competitive retail space led to a shift in strategy, targeting smaller towns with limited shopping options. “Many areas were underserved, which made us rethink where to grow next,” Mukuha said.

With shifting consumer habits, Naivas is prioritizing smaller, strategically located convenience stores instead of large supermarkets. “The demand for large stores is shrinking. Now, nine out of ten new outlets we open are smaller, making shopping more accessible,” Mukuha added.

This aligns with broader industry trends. A 2024 Knight Frank market report shows supermarkets adapting by launching compact stores in residential areas and high-traffic locations.

Retail competition heats up

Naivas isn’t the only retailer making major moves. Quickmart, founded in 2006, has been growing rapidly since merging with Tumaini Self Service Limited in 2019. It now operates 84 stores and was recognized among Africa’s fastest-growing companies by the Financial Times in 2022.

Carrefour, which entered Kenya in 2016, has also expanded significantly. Now the country’s third-largest supermarket chain, it operates 25 stores in cities such as Nairobi, Mombasa, and Kisumu.

With a strong online presence and strategic supplier partnerships, Carrefour remains a key player in the market.

As competition in Kenya’s retail sector intensifies, Naivas remains focused on maintaining its local dominance while keeping an eye on future opportunities.

Expansion beyond Kenya is not off the table, but for now, the retailer’s priority is strengthening its operations and ensuring steady, sustainable growth.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.