The family of the late billionaire poultry farmer Nelson Muguku is selling The Waterfront Karen Mall in Nairobi in a multi-billion shilling deal, marking a pivot from real estate.
A source familiar with the deal reckons that the family is at the tail end of talks to sell the high-end mall in a transaction that could go as high as Sh9 billion.
This marks a shift from a 2014 strategy that saw the family offload shares at the Nairobi bourse to build a property portfolio, giving birth to the mall.
With traffic in malls slowing and increased pressure on rental yields following the construction of additional retail space in the past decade, high-net-worth investors are cutting their property exposure.
The sale of The Waterfront has been in the cards for months.
“We have been in the market and we believe we have a serious buyer on the table,” said Ken Obimbo, the property’s manager.
“There are some covenants that the buyer needs to meet to confirm the transaction is ongoing,” he added.
He declined to provide fine details of the deal, citing non-disclosure agreements inked with the potential buyer.
The Waterfront was valued at Sh3 billion during its launch in 2018.
The 200,000 square feet property sits on 13 acres and has Naivas Supermarket as its anchor tenant following the acrimonious exit of South African retailer Shoprite.
The 13 acres are part of a 50-acre parcel, which was meant to host a high-end residential apartment, offices and a hotel on the vacant land surrounding the mall.
Sources close to the family, however, reckon a man-made lake and related swampy area take nearly a third of the land.
“Utility of the land is dependent on the existing mall and the fact that there is a man-made lake and swampy area,” said a source who spoke anonymously.
The profile document released five years ago billed the property as attractive to investors, noting the undeveloped land offers major development opportunities.
“The Waterfront is the only 50-acre bulk of land at the centre of Karen and its prestigious environs,” the profile read.
“The property features over 30 acres of undeveloped land; a goldmine that can be converted into an ultra-modern mixed-use development featuring high-end residential, commercial and recreational facilities - creating immense value for an investor,” it added. Karen is considered an exclusive residential area that attracts Kenya’s wealth.
At the time, the Muguku family joined a growing number of private equity (PE) investment firms and private developers seeking to tap Kenya’s burgeoning middle class with growing disposable incomes.
At least seven malls were under construction or opened their doors to the public, including Greenspan Mall, Garden City Mall, Thika Road Mall and Mountain Mall located on the Thika Superhighway.
But analysts reckon that returns from malls have ebbed in recent years on shifting consumer tastes and additional space.
Knight Frank, a leading realtor in the country, last year reported an occupancy rate of 78 percent across the prime retail space it manages. “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,” said Knight Frank in its 2025 annual real estate report.
“Supermarket chains such as Carrefour, traditionally associated with higher-end locations, have begun expanding into middle income areas such as Ruai, underscoring the sector’s pivot toward community-based retailing,” it added.
The family patriarch, Nelson Muguku, who died in 2010 aged 78, built a multi-billion shilling business empire from humble beginnings as a poultry farmer based in Kikuyu on the outskirts of Nairobi.
At the time of his death, his estate was valued at approximately Sh10 billion, mainly generated from Muguku Poultry Farm, a modern hatchery, and his stake at Equity Bank, where he was among the top shareholders whose wealth multiplied rapidly following the lender’s listing at the Nairobi Securities Exchange (NSE).
Mr Muguku held 6.08 per cent of Equity Bank shares at the time of his death — a stake that earned him the enviable distinction of being the bank’s largest individual shareholder.
His family has since his death sold off the shares.
Had the stake remained intact as it was during the bank’s listing, it would now be worth Sh22.1 billion.
The renowned philanthropist also dabbled in real estate, owning prime property on Nairobi’s Mfangano Street as well as becoming the dominant property owner in Kikuyu Town.
The family’s other real estate holdings include Stanbank House on Nairobi’s Moi Avenue and Cross Roads Shopping Centre, which is 850 metres away from The Waterfront.
