The International Finance Corporation (IFC), which is the World Bank’s private lending arm, is set to acquire a minority stake in retail chain Naivas International Limited for $15 million (Sh1.5 billion).
The global financier is part of a consortium of investors, including PE fund Amethis Finance, that will provide billions of shillings to Naivas, which is controlled by the Mukuha family.
IFC, will enter Kenya’s retail sector where the collapse of one of the major players in recent years has left a gap.
“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. The Mukuha family will remain in the business as the main shareholders.”
The specific stakes to be held by IFC, Amethis and other investors was not immediately clear.
“Through the proposed investment, IFC is expected to help the company optimise business operations and further strengthen its corporate governance structures,” IFC said.
IFC will also help the company improve environmental and social (E&S) standards across its operations.”
Naivas has more than 60 stores nationwide.
