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.

Congo bans cobalt exporters who breach quotas, enhancing transparency and stabilising global EV battery supply chains.

DRC Enforces Cobalt Export Quotas to Strengthen Market Control

KINSHASA, Oct 6 — The Democratic Republic of Congo (DRC), the world’s largest cobalt producer, announced new measures to regulate exports. President Félix Tshisekedi said any firm violating cobalt export quotas will face permanent exclusion. This policy aims to stabilise global markets and improve fiscal transparency.

“Those who disregard the rules will not have another chance,” Tshisekedi said. “We are building a system that benefits the Congolese people and earns global respect.”

Glencore, a major player in global mining, has cautioned that a cobalt ban by DRC would threaten global supply.

New Export Quota System

Starting October 16, 2025, the DRC will enforce a quota system. Exporters are limited to 18,125 metric tons for the remainder of 2025. Annual limits for 2026 and 2027 are 96,600 tons. The country’s strategic minerals regulator, ARECOMS, will oversee compliance.

The policy replaces temporary bans implemented earlier this year. Those earlier measures followed a sharp drop in cobalt prices to a nine-year low. The DRC produces roughly 70% of global cobalt, essential for electric vehicle (EV) batteries, renewable energy storage, and high-tech electronics.

Industry Reactions

Global mining firms have responded differently. Glencore PLC, a major commodities trader, welcomed the changes as a step toward market stability.

China’s CMOC Group, another large DRC producer, expressed concerns. It cited potential disruptions to production and export schedules. Analysts suggest that the predictable rules could enhance investor confidence. Firms operating in the DRC now have clear guidelines for planning exports and managing supply agreements.

Economic and Strategic Implications

By controlling cobalt exports, the DRC aims to prevent oversupply and price volatility. Stabilized prices ensure steady revenue for the government. The move also strengthens Congo’s credibility as a reliable supplier to the global market.

The DRC’s dominance in cobalt gives it strategic leverage. EV manufacturers, including Tesla (Tesla) and CATL (CATL), will need to adjust procurement strategies. Supply tightening may push London Metal Exchange (LME) (LME) cobalt prices upward.

Global Supply Chain Impact

The DRC’s new regulations could ripple across industries reliant on cobalt. Automotive, electronics, and energy-storage sectors may need to diversify sources. Some analysts predict short-term market disruptions but long-term benefits from a stable and transparent supply chain.

The quota system also aligns with ethical sourcing requirements in Europe and the United States. Global regulators increasingly demand traceable cobalt from conflict-free regions. By formalizing the quota system, the DRC enhances its compliance with these standards.

Transparency and Traceability

The DRC is integrating export data into a Digital Minerals Registry, developed in partnership with the African Development Bank and World Bank. This platform will allow real-time monitoring of production and exports.

“The digital system ensures ghost exporters are eliminated,” Finance Minister Nicolas Kazadi said. “All minerals will be traded transparently.” (World Bank)

Looking Ahead

If the DRC enforces the quotas consistently, it may serve as a model for other resource-rich African nations. The policy demonstrates a balance between national economic interests and global supply chain stability.

Experts believe transparent implementation will boost long-term investor confidence. The DRC’s strategic approach also highlights resource nationalism as a tool for sustainable development.

“Congo’s policy shows the world that controlling resources is essential for economic dignity,” said Eric Zheng, managing director of Shanghai Battery Materials Co. “Predictable regulation benefits both governments and investors.”