Retailer Naivas cites extortion in City Hall ‘health check’ row

A Naivas supermarket chain outlet in Nairobi. 

Photo credit: File | Nation Media Group

City Hall is split over a surveillance health check at Naivas Supermarket, as the giant retailer raised an alert over extortion and bribery.

The executive wing of Nairobi County dismissed claims made by the assembly’s health committee, alleging the retailer had stocked expired products and employed untested persons to handle food sold at its outlets.

Suzanne Silantoi, County Executive Committee (CEC) Member for health, wellness and nutrition, said the public health officers accompanying the Members of County Assembly returned a verdict of full compliance by the retailer.

This emerged as Naivas reckoned that it would not be a victim of extortion and bribery in a response aimed at the committee members.
“Naivas has a very strict anti-bribery and corruption policy and will not submit to extortionary tactics,” said the retailer.

Naivas maintained it was compliant with all regulatory requirements at the national and county levels, including standards set by the Kenya Bureau of Standards (Kebs) and the Ministry of Health.

“No expired products have been found on our shelves, and we maintain stringent internal quality control and stock management systems across all our branches to ensure product safety and compliance with health regulations,” said Naivas.

The County Assembly Health Committee had called for the immediate closure of Naivas outlets in the capital city, citing the stocking of expired goods and untested food handlers.

“We, therefore, as a committee, resolve that we close all the Naivas branches so that they can be tested and given certificates. We are urging the CEC, Madam Silantoi, to move with speed to make sure Nairobians are safe because most of these facilities have expired products,” said committee chairperson Maurice Ochieng.

Some of the products Mr Ochieng cited were Daima and Delite yoghurt.

While the legislative committee has oversight powers, only the executive can close a non-compliant premise.

“The committee was accompanied by our public health officers who confirmed that the branches they visited had met all our requirements and there was no need for closure,” said Ms Silantoi in a phone interview with the Business Daily.

Naivas is the largest supermarket chain in Kenya with 107 branches and over 10,000 employees spread across the country. It has 45 branches in Nairobi, as per its website, meaning a closure would adversely impact its operations.

“The circulating claims are entirely false, misleading, and potentially harmful, not just to our brand but to our valued customers who rely on us for daily essentials,” said Naivas.

The supermarket chain said it was taking legal advice on taking formal action against individuals or organisations spreading misinformation regarding it.

This is the first time a county has called for the complete closure of a retailer within its jurisdiction. Given its nationwide presence, a closure by Nairobi would raise queries on how the retailer would be handled by other counties.

Naivas recorded a profit after tax of Sh1.87 billion in the year ended June 2024, which was an 18.7 per cent drop from a year earlier. The drop was attributed to expansion expenses. Its annual sales were Sh92.7 billion placing the retailer’s daily sales at an average Sh254 million.

The supermarket is majority owned by a consortium of international fund managers including Mauritian conglomerate IBL Group, French fund Proparco and German fund DEG. This follows the progressive sale by the family of the retailer’s founder Peter Mukuha Kago.

Naivas has previously suspended sale of red meat in its outlets following health concerns arising from excessive use of preservatives.

The suspension in 2020 followed closure of its butchery section by Machakos county in a move that pushed the retailer to pull out the products from its offering.

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