Naivas opens 110th store at Tatu City expanding retail presence

KENYA – Naivas Supermarket has opened its 110th outlet at Tatu City, strengthening its presence in Kenya’s retail sector.

The store is located in Eneo at Tatu Central, a mixed-use development designed to cater to both residents and businesses within the Special Economic Zone (SEZ).

The opening of the new Naivas store adds to the growing amenities in Tatu City, allowing customers to access a wide range of products without the need to travel far.

The store features fresh produce, household essentials, and ready-to-go meals from the Naivas deli, making it a convenient shopping destination for residents, workers, and visitors in the area.

“We are excited to enhance the Tatu City shopping experience for residents and surrounding communities,” said Andreas Von Paleske, Chief of Strategy at Naivas. “Our Tatu City branch is a direct reflection of our commitment to meeting the evolving needs of our customers. We achieve this by offering not only an outstanding product range but also by understanding the needs and preferences of those we serve.”

Von Paleske further added that as the retail landscape continues to evolve, the retail chain remains focused on delivering a world-class shopping experience synonymous to the Naivas brand.

Linda Nyaseda, Head of City Management at Tatu City, welcomed Naivas to the growing community, emphasizing the store’s role in improving convenience for those who live and work in the area.

“The opening of Naivas at Tatu City fulfills our vision of a fully integrated, sustainable city where people can live, work, and play. We are delighted to see trusted brands like Naivas recognizing the immense potential of Tatu City,” she said.

Eneo at Tatu Central was developed by Gateway Real Estate Africa and is home to multiple businesses, including CCI Global’s call center, Tamambo restaurant, and branches of major banks such as I&M Bank, Prime Bank, and NCBA Bank.

Other businesses in the development include Safaricom Shop, CleanFax dry cleaners, Optum Health Pharmacy, and Grand Reserve liquor store.

Tatu City continues to expand, with more than 25,000 people currently living, working, or studying within the area. Over 90 businesses have set up operations or are in the process of development, including major brands such as Heineken, Dormans, Kärcher, Cooper K-Brands, and Davis & Shirtliff.

Despite its continued expansion, Naivas has reported a 19.6% drop in profit in 2024, with net earnings falling to KSh1.9 billion (US$150 million) from KSh2.3 billion ($180 million) the previous year.

However, sales rose by 3.6% to KSh91.9 billion (US$710 million), indicating sustained customer demand.

Mauritian conglomerate IBL Group, the largest shareholder in Naivas, attributed the profit decline to restructuring costs, expenses tied to opening new stores, and competition from Carrefour and Quickmart.

“Naivas has shown strong growth, despite facing challenges such as the depreciation of the Kenyan shilling, some political unrest, and a very competitive retail landscape,” said IBL Group CEO Arnaud Lagesse in the company’s 2024 annual report.

The retailer’s total expenses increased by 4.2% to KSh90.2 billion (US$700 million), reflecting rising operational costs. Even with these financial pressures, Naivas continues to expand its footprint, reinforcing its role as a leading player in Kenya’s retail sector.

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