Naivas not up for sale yet, family owners say

The family that owns Naivas Supermarkets Tuesday said the retail chain is not up for sale despite growing interest from foreign investors.

Naivas chairman Simon Mukuha said a number of international investors had expressed interest in the retail chain but the shareholders were not ready to strike a deal with any of them. “Currently, we are not ready for that. We want to fatten the cow before selling it... if ever,” he said.

Mr Mukuha and his siblings are the main shareholders of the retail firm.

EXPRESSED INTEREST

During a court case last month, it emerged that South African retail giant MassMart had expressed interest in acquiring a significant stake in Naivas.

Although Mr Mukuha admits that MassMart had approached Naivas, he said the two firms had not engaged in any formal discussions on the offer.

“It is not just MassMart that has actually expressed interest in us. Many others have done the same but these discussions have not gone very far because we are not ready to sell,” added Naivas business development manager Willy Kimani.

They were speaking after Naivas launched a prepaid card that will double up as a loyalty card under a partnership with Visa and Chase Bank.

COIN SHORTAGE

In a bid to tackle coin shortage in supermarkets, Naivas wants its customers to save change on the prepaid card.

The money can then be used in any Visa branded merchant outlets. Naivas currently has 29 retail outlets and is planning to open three more by the end of the year.

Mr Kimani said the company would seek expanding for growth, in the banking sector or the capital markets, provided that such investments protect the interests of the family.