This archive report was first published on 17 December 2019.
December 17, 2019, marked a significant milestone in the decline of Nakumatt, Kenya's once-largest supermarket chain. The retailer recently closed its Prestige branch, leaving it with only three outlets. An employee revealed to Soko Directory that Nakumatt Highridge might shut down as early as December 31, 2019.
Naivas is reportedly in talks to acquire the remaining Nakumatt outlets by the end of the year. According to a source familiar with the deal, 'They have made a strategic exit with Naivas picking the branches at a consideration. A bank has also put up its Mombasa Road head office for sale. Basically, it is a done deal… a sad reality,' the source told Daily Nation.
As Nakumatt's slow exit from the market continues, many are left to bear the brunt of its demise. The supermarket giant once employed over 6,500 people, paying billions in taxes. Suppliers and creditors, however, might lose up to KSh 6 billion with its downfall. Additionally, Nakumatt still owes its landlords KSh 40 billion in rent payments.
Naivas, on the other hand, seems poised to fill the gap left by Nakumatt's decline. With 58 branches across the country, Naivas is well-positioned to take advantage of the market share left vacant by Nakumatt. Other small retailers, such as Tumaini and Quickmart, have also shown growth, evident by new branches. International players like The Game, Carrefour, and Shoprite are also expanding into Kenya.
