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Naivas Supermarket, Kenya’s largest homegrown retail chain, now led by Mauritian tycoon Arnaud Lagesse’s IBL Group, has opened its 112th outlet in Mihango, a rapidly expanding Nairobi neighbourhood.
The store deepens the retailer’s footprint in the capital and aligns with a measured expansion plan that has seen the chain strengthen its presence in both mature urban centres and emerging population hubs.
A push into Nairobi’s expanding estates
The Mihango outlet now marks another step in Naivas’ milestone in Kenya’s retail landscape, especially in Mihango, an area that has seen an influx of new housing and, with it, demand for reliable access to groceries and everyday household supplies.
By moving in early, the retailer strengthens its hold on the wider Eastlands region, an important catchment area for supermarket chains targeting rising middle- and lower-middle-income consumers.
Naivas recently rolled out a new Enterprise Resource Planning system to streamline stock management and improve coordination across its outlets, a move intended to support its expanding scale.
Solid financial footing as competition heats up
The company’s latest opening follows a strong financial year, 35 years since its first store in Nakuru. Naivas revenue rose 21.6 percent to $751.4 million. Net profit increased 43.4 percent to $16.1 million, buoyed by steady consumer spending and the retailer’s continued push into neighbourhoods that have long been underserved by major chains.
Despite rising costs and intense competition for prime locations, Naivas has signalled that it intends to keep expanding — though at a pace it considers sustainable. The retailer plans to add up to 10 branches each year, aiming for measured growth rather than rapid, risky leaps.
IBL Group, which owns 51 percent of the supermarket through its Mambo Retail vehicle, says East Africa has become central to its portfolio. The region now contributes 37 percent of the group’s total revenue, with Naivas playing a major role. IBL’s retail division reported a 79 percent surge in operating profit, driven largely by the Kenyan chain’s performance.
A retail leader still widening its reach
Naivas began as a family-run shop in Rongai in 1990, founded by the late Peter Mukuha Kago. Its transformation into Kenya’s largest local retail chain continues under IBL, which has provided both capital and strategic pressure to sharpen systems and consolidate leadership.
With the Mihango branch now open, Naivas is pushing ahead to reach its long-term ambition of 200 stores, a strategy built on steady store rollouts, improved customer service, and tighter back-end operations that span Kenya’s major towns and growing suburbs.
