Naivas plans an 80% rise in outlets as strong consumer demand powers Kenya’s biggest retail expansion.

Retail Growth Driven by Consumer Demand

Kenya’s largest supermarket chain, Naivas, is targeting a major expansion of up to 80% more outlets, reflecting strong nationwide consumer demand. According to a Bloomberg report and corroborated by Business Daily Africa, the retailer aims to increase its footprint from 111 stores to nearly 200 over the next several years.

The chain has benefited from Kenya’s rising disposable income, urbanisation, and growing preference for modern retail formats. Analysts say this expansion positions Naivas as a dominant player in a market still recovering from the collapse of legacy chains such as Nakumatt, Uchumi, and Tuskys.

Leadership Transition Marks New Era

Naivas’ aggressive growth coincides with a leadership change. Long-serving CEO David Kimani stepped down in October 2025 after guiding the company through a transformative decade. Kimani will remain as an adviser to the board and the founding Mukuha family, according to Business Daily.

He said at the time:

“Naivas was built for Kenyans, and our mission has always been to bring modern retail closer to every household. The fundamentals are strong, and this is the right time to scale.”

Succeeding him is Andreas von Paleske, Naivas’ first non-family CEO. Von Paleske highlighted the retailer’s strong foundations:

“Naivas has built an unmatched bond with Kenyan households. Our priority now is to scale this trusted model with discipline and ambition.”

Business Daily noted that von Paleske’s appointment signals a professionalisation of management aimed at sustaining long-term growth.

Investor Backing Enables Expansion

The planned growth is supported by IBL Group, IFC, and Proparco, who have all invested in Naivas’ recent funding rounds. Bloomberg and Business Daily report that IBL Group chairman Arnaud Lagesse described Naivas as:

“A remarkable retail success story rooted in strong values, operational excellence, and deep understanding of the Kenyan consumer.”

IFC emphasised that Naivas supports “thousands of direct and indirect jobs” and plays a critical role in local supply chains, from farmers to logistics providers.

Targeted Store Rollouts

Naivas will focus expansion on second-tier towns and rapidly growing urban corridors. Target counties include Nakuru, Kiambu, Uasin Gishu, Machakos, and Mombasa, while urban neighbourhoods in Nairobi such as Ruiru, Ruai, Kamulu, and Athi River are also on the shortlist.

Business Daily reports that these areas are experiencing strong population growth and rising middle-class income, creating ideal conditions for modern retail.

Supply Chain and Jobs Impact

Naivas is one of Kenya’s largest private-sector employers with more than 10,000 staff. Analysts project that the expansion could generate an additional 7,000–8,000 jobs, spanning retail operations, logistics, merchandising, and distribution.

FMCG executives praise Naivas’ reliability, noting that it is “more predictable and data-driven than almost any other chain in East Africa,” according to Business Daily. Local suppliers also benefit from the chain’s growing footprint, which strengthens regional supply chains and improves market access.

Outlook for Kenya’s Retail Sector

Despite macroeconomic challenges such as inflation and rising logistics costs, Naivas’ leadership remains confident. Von Paleske told Bloomberg:

“Retail demand in Kenya remains robust. Our focus is to execute with excellence, invest prudently, and deliver consistent value to customers nationwide.”

Analysts predict that if executed effectively, Naivas’ 80% expansion will cement its position as Kenya’s leading retailer and potentially a regional powerhouse in East Africa.

Kenya’s Gulf Energy to begin oil output from South Lokichar Basin by 2026 after securing government approval.

Gulf Energy to Begin Kenya Oil Production by 2026

Kenya’s long wait to produce its own oil may soon end. Gulf Energy Ltd. has received government approval to launch production from Tullow Oil’s South Lokichar fields by the end of 2026.

Happening five months since Tullow oil exited kenya,the endorsement from the Ministry of Energy and Petroleum marks a new phase in Kenya’s journey toward energy independence. It also reflects the government’s determination to attract private investment into the extractive sector, especially through local partnerships.

Unlocking a Long-Stalled Project

Located in Turkana County, the South Lokichar Basin was discovered in 2012 by Tullow Oil plc. It contains an estimated 560 million barrels of recoverable crude. However, years of uncertainty, poor infrastructure, and financing setbacks delayed progress.

With Gulf Energy now stepping in, optimism has returned. The company — a member of the Gulf Energy Group — plans to inject fresh capital, local expertise, and renewed confidence. The move aligns closely with President William Ruto’s Bottom-Up Economic Transformation Agenda (BETA), which emphasizes domestic investment and industrialization.

Target Output and Funding

Production is expected to begin with a pilot phase in late 2026, followed by full-scale operations targeting about 60,000 barrels per day (bpd).

To achieve this, Gulf Energy plans to invest roughly US$3.4 billion in field development, crude gathering systems, and an export pipeline connecting Turkana to the Lamu Port through the Lamu Port–South Sudan–Ethiopia Transport (LAPSSET) corridor.

This pipeline will finally allow Kenya to export crude directly from its coastline. Energy Cabinet Secretary Davis Chirchir praised the approval, noting its importance to national development.

“We are converting discovery into value. This initiative will create jobs, attract investors, and boost energy security,” Chirchir said.

Economic Impact and Job Creation

The project is expected to create over 2,500 direct jobs and stimulate thousands of indirect opportunities. Moreover, new roads, schools, and water systems will enhance living standards in Turkana County.

Kenya currently spends more than KSh 640 billion (US$5 billion) each year on fuel imports, according to Central Bank of Kenya data. Local oil production could reduce that burden while easing pressure on the shilling.

Energy economist George Muchiri from the University of Nairobi believes this project will reshape Kenya’s economy.

“Local production improves the balance of payments and builds investor confidence,” he said. “It shows Kenya’s capacity to run complex energy ventures.”

Local Ownership and Policy Alignment

Gulf Energy’s participation highlights a deliberate policy shift. Under the Petroleum Act 2019, Kenya promotes domestic participation in natural resource projects.

While Tullow Oil retains technical oversight, Gulf Energy provides the financial muscle and implementation capability. Regional lenders and sovereign wealth partners are also expected to join, deepening local ownership.

According to Muchiri, this collaboration signals progress.

“Allowing a Kenyan company to take the lead builds credibility,” he explained. “It’s a strong step toward energy self-reliance.”

Challenges Along the Way

Despite the positive outlook, the project faces key hurdles. Building the export pipeline could take at least three years, and negotiations with international financiers are ongoing. In addition, community compensation and environmental assessments must be concluded before construction begins.

Nevertheless, global oil prices above US$80 per barrel make Kenya’s reserves commercially viable. Analysts from Wood Mackenzie say African frontier producers can achieve profitability if they manage logistics and costs efficiently.

Regional Context and Opportunity

Kenya’s oil push coincides with Uganda’s plans to start output in 2026 through the Lake Albert Development Project, led by TotalEnergies SE. Together, both countries could transform East Africa into a key oil-producing hub.

Furthermore, the development may accelerate growth around the LAPSSET corridor, connecting inland oil fields to the Indian Ocean and linking Kenya, Ethiopia, and South Sudan through trade and energy.

Strategic Importance for Kenya

If Gulf Energy delivers on schedule, Kenya will join the ranks of Africa’s oil producers for the first time. The project could generate hundreds of millions in annual revenue and attract renewed confidence in Kenya’s resource potential.

Cabinet Secretary Chirchir emphasized the broader vision behind the project.

“This venture is about transformation, not just extraction,” he said. “It represents Kenya’s readiness to compete regionally and globally.”

Conclusion

Gulf Energy’s approval to develop the South Lokichar fields revives a project that once seemed lost. It brings Kenya closer to realizing its petroleum ambitions and diversifying its energy base. With the right execution, the initiative could redefine Turkana’s economy, strengthen national revenues, and place Kenya firmly on the global oil map.

EABL will redeem its $83 million bond early, ending Kenya’s top debt deal and showing strong investor trust in the brewer’s stability.

EABL to Redeem $83m Bond Early, Strengthening Investor Confidence

NAIROBI, Oct 14 (Reuters) – East African Breweries PLC (EABL) will redeem its KSh 11 billion (≈ $83 million) bond a year before maturity, underscoring its strong cash flow and disciplined debt management. The brewer will delist the note from the Nairobi Securities Exchange (NSE) after the payout on October 29, 2025.

EABL triggered an early-redemption clause under its 2021 Medium-Term Note (MTN) Programme, allowing it to repay both the principal and accrued interest before the original October 2026 maturity.

“The decision reflects our robust liquidity position and confidence in future growth,” an EABL executive said in a background briefing.

Record Demand Showed Market Trust

When EABL issued the bond on October 29, 2021, investor demand far exceeded expectations. The five-year note, paying a 12.25% fixed coupon, attracted bids worth KSh 37.96 billion (≈ $285 million) against a target of KSh 11 billion. That represented a 345% subscription rate—the highest for any Kenyan corporate bond.

The offer, arranged by Absa Bank Kenya PLC and Absa Securities Limited, carried a semi-annual coupon and set a benchmark for corporate debt pricing. At issuance, the bond priced roughly 80 basis points above Kenya’s five-year Treasury yield, reflecting strong investor appetite rather than risk.

“Such high uptake proved investors believed in EABL’s credit quality,” said David Mwangi, a Nairobi-based fixed-income analyst. “Now, the early redemption confirms the company remains financially healthy.”

Market Trading Supports Early Payback

By October 9, 2025, the bond traded at 101.14 on the NSE, slightly above par, implying a 10.85% yield to maturity. That pricing signaled investors already expected early repayment.

Holders registered with the Central Depositories and Settlement Corporation (CDSC) by October 14, 2025, will receive full payment on the next coupon date, October 24, 2025. Once payments conclude, the issue will be formally delisted, closing one of Kenya’s most successful corporate debt programmes.

EABL said the original bond proceeds financed short-term debt refinancing and working capital across its regional operations in Kenya, Uganda, and Tanzania.

Why the Move Matters

The early redemption strengthens EABL’s balance sheet by cutting interest costs and lowering leverage. Analysts estimate it will save the company about KSh 1.34 billion (≈ $10 million) in coupon payments.

Moreover, the move comes at a time when many African corporates struggle to meet debt obligations. EABL’s early repayment sets a positive example for regional issuers navigating high borrowing costs and currency volatility.

“This shows how strong governance and liquidity can build investor trust,” said Mary Gichuru, investment banker at Sterling Capital Kenya. “It’s a reminder that sound management still attracts capital even in tough markets.”

Broader Market Context

Kenya’s corporate bond market has been slowly recovering after years of weak issuance and defaults. According to Kenya Wall Street, EABL’s 2021 MTN issue revived investor interest, while Safaricom’s Sh20 billion (≈ $150 million) sustainability bond in 2024 strengthened momentum.

By redeeming early, EABL reinforces that revival and enhances market credibility. The move also reduces refinancing risk amid a tight monetary environment. The Central Bank of Kenya (CBK) has kept benchmark rates high to curb inflation and stabilize the shilling, which has depreciated nearly 9% year-to-date.

EABL, majority-owned by Diageo PLC, operates in seven East African markets and produces brands such as Tusker, Guinness, and Smirnoff. The group remains East Africa’s largest listed beverage company by market capitalization.

Looking Ahead

With debt costs falling, EABL may consider a fresh bond once conditions ease. Analysts believe early redemption will lower its debt-to-equity ratio and open room for new investments in innovation and sustainability.

Economist James Kariuki noted, “Redeeming this bond early signals to global investors that Kenya’s corporate sector can manage capital efficiently. It could attract more foreign portfolio flows to the NSE’s fixed-income segment.”

After the October 2025 redemption, EABL’s 2021 MTN Programme will officially close. It will be remembered for record subscription, timely repayment, and renewed confidence in Kenya’s capital markets.