• Naivas plans to expand from 111 to 200 stores, adding 10 yearly
• FY2025 revenue rose 21.6% to $885M; net profit up 43% to $18.4M
• Focus remains on Kenya, avoiding Nakumatt-style regional expansion risks
  

Kenyan retailer Naivas is preparing a major expansion, with plans to eventually increase its store network to 200 locations from the current 111. The plan, disclosed by Managing Director Andreas von Paleske and reported by Bloomberg, is intended to strengthen the chain’s position in Kenya’s fast-evolving retail sector.

The company, which grew rapidly after the collapse of former market leader Nakumatt, is betting on rising consumer demand driven by urbanization. “If you look at the rate of urbanization, especially in Nairobi, the density of residential areas and the need for basic services such as retail, I suspect that number may grow over time,” von Paleske said. “We still see a lot of opportunity to grow in the market. Many areas are either unserved or underserved by Naivas.”

Naivas plans to add about ten stores per year and expects revenue to grow by 10 to 15 percent annually, according to von Paleske.

The chain has attracted customers in Nairobi and in cities such as Kiambu and Malindi by focusing on low-priced products in physical stores and operating 24-hour outlets that allow late-night shopping. Naivas also moved into digital services in 2024 with the launch of its mobile app.

For the fiscal year ending June 30, 2025, the company reported a 21.6 percent increase in revenue to 114.45 billion shillings (885 million dollars) and a 43 percent rise in net profit to 2.45 billion shillings (18.4 million dollars).

Analysts say Naivas is expanding cautiously and does not currently plan to enter other East African markets. The strategy contrasts sharply with Nakumatt’s regional expansion into Uganda, Rwanda, and Tanzania, which took place while the chain was taking on heavy debt.

Naivas does not yet match the 1 percent share of Kenya’s GDP that Nakumatt once held, but analysts note that Kenya is the second-largest retail market in Africa after South Africa and offers strong prospects for the chain’s continued growth.

Espoir Olodo