Kenya’s retail chains, Naivas, Quickmart, and Carrefour are changing their expansion strategies, moving away from traditional large mall locations to target middle-income neighbourhoods.
According to Knight Frank’s H2 2025 report, the shift comes as discount and budget retailers like China Village, China Square, Love Home Mart, and Panda Mart continue to expand.
The trend is expected to accelerate, driven by the continued growth of discount and budget chains.
“The outlook for Kenya’s retail real estate market in 2026 will be defined by a continued shift toward neighbourhood centres and mixed-use developments, with less emphasis on large regional malls,” read part of the report.
“This focus on middle income areas is expected to deepen, supported by the continued rollout of discount and budget retail chains such as China Village, China Square, Love Home Mart and Panda Mart, as consumers become more value conscious amid reduced disposable incomes.”
Carrefour, traditionally linked to premium locations, has started expanding into middle-income areas such as Ruai, illustrating a broader shift in Kenya’s retail sector toward community-based shopping.
Naivas, Quickmart and Carrefour New Outlets
Naivas solidified its position as Kenya’s largest supermarket chain by store count.
It opened several new outlets, including Westbay Mall in Gachie, OUR Mall on Magadi Road, the Mihango area on Kigwathi Road, and capped the year with its 113th store in Athi River in December 2025.
At the same time, Carrefour Kenya, operated by Majid Al Futtaim, continued its growth trajectory, reaching 34 stores nationwide by December 2025.
Major openings included outlets at Waris Mall in Ruai, Beacon Mall in Upperhill, Ayden Plaza in Ngara, and Parkview Mall in Parklands.
Also Read: Why Naivas Has Chosen a Non-Family CEO After 35 Years of Family Leadership
On the other hand, Quickmart expanded its footprint, opening its 63rd store at Basic Mall on Banana Road in Ruaka.
Global Supermart opened its first outlet at Crystal Rivers Mall in Athi River.
Also Read: List of QuickMart Supermarket Branches in Kenya
How Retail Market Performed in 2025
The report stated that the retail market performance in 2025 was a mixed outcome that balanced between resilient retailer expansion and ongoing pressure on consumers.
Customer flow rose across major centres during the festive season, confirming the continued relevance of physical retail for peak shopping periods.
“Footfall rose across major centres during the festive season, confirming the continued relevance of physical retail for peak shopping periods, but high taxes and constrained disposable incomes kept spending value driven,” read part of the report.
To increase customer flow, leading chains such as Carrefour and Naivas sharpened their focus on promotions, local sourcing, and value positioning.
According to the report, the mall performance increasingly relied on strong anchor tenants, like Naivas, Quickmart, Carrefour, and Chandarana Food Plus, to draw shoppers, which also benefited the other smaller shops in the mall.
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