Kenya’s retail sector continues to show resilience and growth, with Carrefour Kenya expanding its store network to 34 outlets nationwide and Naivas opening its 112th store in Mihango, Nairobi.
These developments highlight the steady rise of modern retail operators amid a recovering supermarket industry.
Carrefour Kenya’s Growth to 34 Stores
Carrefour, operated by Majid Al Futtaim, has reinforced its position as one of the fastest‑growing retailers in Kenya. In 2025, the chain opened eight new stores across Nairobi, the Coast, and Watamu.
Since its first Nairobi store in 2016, Carrefour has shifted from mall‑based outlets to community locations, increasing accessibility for everyday shoppers. Under the leadership of Christophe Orcet, Regional Director – East Africa, Carrefour has invested in:
- Local sourcing: 99% of products are sourced from Kenyan farmers, SMEs, and manufacturers.
- Customer engagement: Promotions such as the Brand Festival (March 2025) offered discounts of up to 50% and prize draws worth Ksh10 million.
- Sustainability: The ‘Choose Better’ programme encourages healthier, eco‑friendly shopping choices.
- Talent development: The Retail Business School in Nairobi aims to upskill 1,500 professionals annually.
- Digital innovation: Self‑checkout, mobile engagement, and digital pricing tools to enhance convenience.
By September 2025, the opening of the 30th store at Waris Mall in Ruai added 1,500 square metres of retail space and created over 40 direct jobs. Carrefour now directly employs more than 2,800 people, with thousands more supported indirectly.
Naivas Expands to 112 Stores
Naivas has extended its reach into Nairobi’s rapidly growing Mihango neighbourhood with its 112th outlet, giving shoppers broader access to its product range.
The launch caps a year of steady rollout and ties into Naivas’ plan to open up to 10 new stores annually, targeting 200 outlets nationwide.
This strategy builds on the 111 stores it operated at the time of the November 2025 announcement, reflecting its focus on both major urban centres and emerging towns.
Naivas Financial Performance (FY 2025)
| Metric | FY 2025 Result | Change (%) |
|---|---|---|
| Net Profit | US$16.1m | +43.4% |
| Revenue | US$751.4m | +21.6% |
| Expenses | US$735.8m | +21.3% |
| Equity Position | US$202.2m | Shift from –US$0.9m |
| Profit Attributable to Owners | US$9.0m | From prior year’s loss |
Naivas Posts Sh2.39 Billion Profit as Expansion Fuels Growth
Naivas grew its footprint to 108 stores during the financial year, tapping into more customer segments nationwide. The retailer is also implementing a new Enterprise Resource Planning (ERP) system to improve efficiency and coordination across locations.
IBL Group Outlook
IBL Ltd., which owns 51% of Naivas, reported that East Africa now contributes 37% of its total revenue, with Naivas driving most of that performance.
The group’s retail division posted a 79% increase in operating profit, with CEO Arnaud Lagesse linking the improvement to regional expansion. Financial disclosures show Naivas’ turnaround from negative equity to a strong positive position, underscoring its improved financial footing.
Naivas Ushers in New Era as Andreas von Paleske Becomes CEO, Succeeding David Kimani
Challenges Facing Retail Chains
Both Carrefour and Naivas operate in a competitive environment marked by:
- Rising inflation and cost-of-living pressures.
- Increased energy, transport, and production costs are affecting supplier margins.
- Aggressive expansion by rivals such as Quickmart and Chandarana.
