Kenyan retailer Naivas raises $55m from sale of stake to PE investors

Kenyan supermarket chain Naivas has raised Ksh.6 billion (about $55 million) from the sale of a 30% stake to a consortium of private equity investors, according to a report by Business Daily.

Earlier this year Africa Private Equity News reported that Amethis – alongside its partners DEG, MCB Equity Fund and IFC – acquired a minority equity stake in Naivas Group.

Naivas is the leading retailer in Kenya with 60 stores throughout the country.

Established in 1990 by the Mukuha family, Naivas started as a small family business in the village of Rongai, located on the outskirts of Nakuru town in rural western Kenya. From 2001, the company expanded to Nairobi where it opened its first branch on Ronald Ngala Street. The activity of Naivas then progressively migrated to Nairobi through subsequent openings and opportunistic acquisitions.

This investment, the fourth of Amethis Fund II, will support the strategy implemented by the family and the management team towards the emergence of a national leader in the retail sector. Naivas aims at continuously improving its supply chain, developing its private label segment and strengthening relationships with suppliers. The group will then be able to consolidate its position and to further expand with new openings in the country.

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