All Twists in Naivas Supermarket’s Tussle With Nairobi County

Hello Moneymakers, Kubasu here. In this newsletter, we are covering the Naivas Supermarket shutdown order and the twists that followed, senators opposing the lease of sugar mills, and the government's nod to view suppliers' bank accounts.

Naivas Supermarket Shutdown Order & the Aftermath

Yesterday evening was a rough time for Naivas Supermarket managers after the Nairobi County Assembly's Health Committee ordered the retail giant to shut down all its Nairobi retail outlets.

Mid-day – Order to Shut Down: The Health Committee accused the supermarket chain of selling expired products, thereby risking the lives of city residents.

“We are here at Naivas Moi Avenue, and we have realised that there are expired products on the shelf, putting Nairobians at risk,” the committee, led by MCA Maurice Ochieng, stated at a press conference. Specifically, the spot check revealed expired yoghurt still on shelves, while some products lacked expiry dates.

“Also, we found out that the people handling these products have not been tested. Therefore, as a committee, we resolve to close all Naivas outlets in Nairobi so that the handlers can be tested and issued certificates to serve Nairobians,” he added.

4:00 PM – Naivas Retaliates: The retail giant remained adamant that it would defy the shutdown order, terming the claims as "false, misleading, and potentially harmful."

“We would like to reassure our customers, partners, and the general public that no expired products have been found on our shelves. Naivas is taking legal advice regarding formal action against the individuals or organisations spreading misinformation,” Naivas said, further accusing City Hall of extortion and bribery.

6:00 PM – Kuria Wades In: President William Ruto's Senior Economic Adviser, Moses Kuria, castigated the county government for issuing the closure order against Naivas, noting that the move would have serious economic repercussions.

"We will not create jobs when county governments wake up and close Naivas and Carrefour arbitrarily. You don't attract investors by acting whimsical," he stated.

7:00 PM – MCAs React: The Nairobi City County Assembly Health Committee issued a scathing response to the giant retailer over the bribery allegations leveled against them. The strongly worded letter reprimanded Naivas, noting that the lawmakers had inspected the Moi Avenue branch and found expired products.

"Naivas Supermarket's statement is noted, but we must remind you of the duties of Members of the County Assembly (MCAs) under the Constitution of Kenya (2010), Article 185, and the County Governments Act (2012), Section 9, which mandate MCAs to oversee and ensure compliance with health and safety standards, including food safety, for the welfare of county residents," the committee's statement read.

7:00 PM – Sakaja Team Distances Itself from MCAs: The Nairobi County Government, headed by Governor Johnson Sakaja, issued a statement clarifying that it had not ordered Naivas to shut down its stores, "as stated during a press conference held by the County Assembly Health Committee."

"On 13th May 2025, the Nairobi County Assembly Health Committee, led by Chairperson Hon. Maurice Ochieng, conducted an oversight visit to Naivas Supermarket (Moi Avenue branch) and other premises. The Committee recommended the closure of the said premises and instructed officers to issue notices," Sakaja explained.

"The Director of Environmental Health, Mr. Anthony Muthemba, conducted an independent follow-up assessment of the premises and concluded that the issues identified did not meet the legal threshold for immediate closure, as outlined in the Food, Drugs and Chemical Substances Act, Cap 254. Based on the Director of Environment's report and technical guidance, the Nairobi County Executive determined that the premises should remain operational while the necessary documentation and compliance matters are reviewed administratively.

"As such, the Nairobi County Executive reiterates that any decision to suspend or close food establishments must be guided strictly by law, technical standards, and due process, which is the mandate of the County Executive," City Hall added.

Of Note: Most Naivas outlets remained operational despite the closure order.

Here are other top business stories this morning;

Treasury to Monitor Suppliers' Bank Transactions via e-Procurement System

Starting in July, the National Treasury will begin monitoring suppliers’ bank transactions through a newly integrated electronic procurement platform, in a bid to eliminate tax evasion, fronting, and inflated financial claims by firms competing for government contracts, a report by Business Daily shows.

According to Treasury Principal Secretary Chris Kiptoo, the electronic Government Procurement system (e-GP) will be directly linked to banks and the Kenya Revenue Authority (KRA). This integration will enable real-time access to financial data and tax compliance records of firms bidding for state tenders.

Senators Demand Answers Over 30-Year Lease of Public Sugar Mills

Senators have opposed the government's plan to lease four public sugar milling companies for 30 years, according to a report by the Daily Nation. They demand that the administration led by President William Ruto explain its rationale.

The legislators argued that strengthening public ownership through the appointment of capable management was a viable option, but the State instead opted to lease the companies.

Chemelil Sugar Company, Muhoroni Sugar Company, Nzoia Sugar Company, and Sony Sugar Company are the firms affected by the leasing plan.

Nairobi County Begins Clamping City Buildings Over Land Rates

The Nairobi County Government has begun clamping down on city buildings that have defaulted on remitting land rates, despite a penalty waiver.

According to a report by Kenyans.co.ke, one of the affected properties is the Grand Lodge of East Africa’s Freemasons’ Hall, which was accused of failing to remit Ksh19 million.

Earlier, the county government revealed that 206,000 landlords and property owners had consistently defaulted, and that the crackdown would begin with those who owe the most.

KPA Targets Port Expansion to Handle 47 Million Tonnes by 2029

The Kenya Ports Authority (KPA) is pushing forward with a multi-billion-dollar expansion and modernisation plan to accommodate an anticipated 47 million metric tonnes of cargo within five years. In 2024, KPA handled 41.1 million tonnes—up 14.1% from 36.0 million tonnes in 2023.

Central to the plan is the construction of Phase Three of the Second Container Terminal, which will boost capacity by 500,000 TEUs, according to a report by the Standard. A feasibility study has greenlit a 350-metre berth with a 15-metre draught, with KPA partnering with the Japan International Cooperation Agency (JICA) for implementation.

While the exact cost of phase three remains undisclosed, Phase One cost Ksh26 billion, and Phase Two—with three berths—was valued at about Ksh32 billion.