“Naivas is majority-owned by the Mukuha family who as part of this transaction will dispose part of their shareholding to a special purpose vehicle owned by IFC, Amethis and other co-investors,” IFC said ahead of the deal’s conclusion on February 25, “The Mukuha family will remain in the business as the main shareholders.”

According to a valuation by Massmart, a South Africa-based subsidiary of retail giant Walmart, the Sh 6 billion is nearly twice what an investor would have paid for a similar stake in 2013.

Massmart sought to buy a 51% stake in Naivas for Sh3 billion, but the deal collapsed following a shareholder row in the family-owned supermarket.

Massmart had valued Naivas at Sh 5.88 billion meaning the supermarket chain has increased its value nearly four times over the seven years. Naivas has managed to grow in a sector where top local chains such as Nakumatt and Choppies struggled to remain afloat.  

While Naivas has raised growth capital, its main rival Tuskys is fundraising to avoid bankruptcy.

Tuskys says it needs Sh2 billion to survive in the short term and that it has received interest from several unnamed investors, including a private equity firm that has existing operations in the retail business.