World Bank Buys Naivas Supermarket Stake Worth Ksh1.5 Billion

The World Bank private lending arm, the International Finance Corporation (IFC) have announced that it is on the process of buying a stake at Kenya’s Naivas Supermarket worth 1.5 billion shillings.

The World bank’s IFC is an affiliate of the World Bank and a member of the World Bank Group which is the World’s largest global development institution that focuses on the private sector in developing countries such as Kenya

The IFC will now be joining a group of investors such as the Private Equity Fund Amethis in financing the Kenyan Naivas Supermarket at a time when the COVID-19 is paralyzing businesses and causing losses to retailers.

“IFC seeks to make an equity investment alongside Amethis which will result in a minority stake in the company,” a statement from IFC reads adding that Naivas Supermarket is a majority-owned retailer by the Mukuha family who as part of their transaction will dispose part of their shareholding to a special purpose vehicle owned by IFC, Amethis and other co-investors.

The IFC statement continues to read revealing that the Mukuha family will remain in the business as the main shareholders and that the investment will be aimed at optimizing business operations and strengthening governance structures at Naivas Supermarket.

“IFC will provide a food safety advisory program that will ensure that the company complies with the Global Good Agriculture Practice (GGAP) that is more stringent than local standards. IFC will also help the company improve environmental and social (E&S) standards across its operations,” IFC notes in their statement.

Amethis Finance acquired a 30 percent stake of Naivas Supermarket in 2020 which had 62 outlets by then and has been registered for the last three decades. Naivas which first began as Rongai Self Service Stores Limited in Nakuru County changed later to Naivasha Self Service Stores Limited, before re-branding to the current Naivas Limited, in 2007.

Naivas Supermarket was rebranded and registered on 24 July 1990 and is a source of livelihood and employment to thousands of Kenya.

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