Naivas Supermarket Records Ksh 2.42 Billion In Profits

By Robai Ludenyi

Naivas Supermarket has recorded a strong recovery in its financial performance, posting a profit of Sh2.42 billion for the year ended June 2025. This marks a major rebound from the previous year’s profit of about Sh1.68 billion. The impressive results come at a time when the retailer is pushing forward with an ambitious expansion plan that has seen it open new outlets across the country and strengthen its position as Kenya’s leading supermarket chain.

The company’s total revenue rose sharply by 21.6 percent to reach Sh113.48 billion, compared to Sh93.31 billion the year before. This growth was mainly supported by higher sales volumes and a wider network of stores that now reach more customers in both urban and rural areas. Naivas ended the year with 108 branches, up from 66 in 2020, showing the scale of its growth in just a few years. The retailer’s expansion strategy has focused on entering new towns while upgrading existing stores to provide better customer experiences.

The increase in sales was accompanied by higher operating expenses, which rose by 21.2 percent to about Sh111.06 billion. Despite the rise in costs, the company managed to maintain a healthy profit margin, showing that its expansion and operational efficiency measures are paying off. Naivas has been investing in technology to streamline operations, including the use of advanced management systems that help control costs and improve coordination across its many outlets.

Naivas is partly owned by a group of international and local investors led by the Mauritius-based IBL Group. The group owns its stake through Mambo Retail, which holds a majority interest in the supermarket chain. The injection of capital and expertise from the investors has helped Naivas strengthen its governance, improve supply chain management, and enhance its competitiveness in the retail market.

The profit rebound is particularly significant given the challenges that have hit Kenya’s retail industry in recent years. Several major supermarket chains have struggled to stay afloat, with some even closing their doors due to financial difficulties. Naivas has managed to buck this trend by maintaining strong customer loyalty, expanding strategically, and keeping prices competitive. Its focus on understanding consumer needs and offering convenience has also given it an edge in a fast-changing market.

Looking ahead, Naivas plans to continue its expansion drive while keeping a close eye on cost management. The retailer faces challenges such as rising inflation, higher utility costs, and increased competition from both local and international players. However, its track record of strong execution and ability to adapt to market trends suggest that it is well-positioned for sustained growth.

The company’s performance sends a strong message to investors and the broader retail sector: that with the right mix of strategy, innovation, and financial discipline, growth is still possible even in a difficult business environment. Naivas’ rise to a Sh2.42 billion profit is not only a win for the company but also a sign of renewed confidence in Kenya’s formal retail sector. The next few years will show whether this success marks the beginning of a long-term growth story for one of Kenya’s most recognizable homegrown brands.

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The author is Robai Ludenyi. Journalist and Media Innovator