Mauritian tycoon Arnaud Lagesse's Naivas lifts profit 41.7% to $26 million

Naivas, Kenya's largest homegrown supermarket chain, increased its net profit by 41.7% to KSh3.37 billion ($25.9 million) in the financial year ended June 2026, extending a run of strong growth under the control of Mauritian tycoon Arnaud Lagesse's IBL Group.

Profit rose from KSh2.38 billion ($18.3 million) in the previous financial year and has more than doubled from KSh1.66 billion ($12.8 million) in the year to June 2024. Sales reached KSh123.66 billion ($952 million). In Mauritian rupees, the currency IBL reports in, profit rose to 1.22 billion rupees from 861.69 million rupees.

The results come as rival chain Quickmart prepares to list on the Nairobi Securities Exchange on Nov. 12, after an initial public offering that drew bids worth KSh18.4 billion ($142 million).

A steady expansion

Naivas has been opening stores at a steady pace. The chain had 108 branches at the end of 2025, opened its 112th store in Nairobi's Mihango in December and had 114 stores by May. Managing Director Andreas von Paleske has said the retailer plans to add about 10 stores a year and eventually reach 200.

"We still see a lot of opportunity to grow in the market," von Paleske has said, adding that "many areas are either unserved or underserved by Naivas."

How IBL took control

IBL took control of the business in stages. In 2022, an IBL-led consortium that included development lenders Proparco and DEG bought 40% of Naivas International through Mambo Retail in a deal valued at $145 million. A year later, IBL funded the purchase of a further 11% for $41.7 million, giving Mambo Retail a controlling 51% stake.

IBL holds 73.2% of Mambo Retail, which gives it an effective indirect interest of about 37% in Naivas. Von Paleske runs the chain on IBL's behalf, ending the founding Mukuha family's control of day-to-day operations.

The late Peter Mukuha Kago founded Naivas as a single shop in Rongai in 1990. Today it sits in IBL's retail cluster, alongside Winners in Mauritius and Run Market in Reunion. The cluster generated about $1.4 billion in revenue in IBL's last full financial year.

Lagesse leads IBL, Mauritius's largest conglomerate, and drove the 2016 merger of two family holding companies that created it. He and his brothers hold a combined 16.8% stake in the group. Under his "Beyond Borders" strategy, East Africa now supplies about 37% of IBL's turnover.

Figures were converted at KSh129.9 to the dollar.