Quickmart sets sights on NSE listing

Kenyans will get a chance to own a piece of Quickmart, the country's second-largest supermarket chain, after the retailer said on Wednesday it plans to list on the Nairobi Securities Exchange (NSE).

The deal will see its sole shareholder sell 50 per cent of the company, enabling the current owners to cash out part of their investment.

"Listing on the NSE will give Kenyans an opportunity to own a share of the business they already shop in, while raising our profile with suppliers and partners as we continue to deliver on our growth strategy," said the chain's CEO, Peter Kang'iri.

Quickmart, which made a profit after tax of Sh1.7 billion last year on revenue of Sh50.4 billion, is wholly owned by Sokoni Retail Kenya Limited (SRKL), a holding company or investment vehicle through which the owners hold their stake in Quickmart.

The people and firms behind Sokoni are funds managed by Adenia Partners, a Mauritius-based private equity firm that invests across Africa, the founders of Quickmart, the founders of Tumaini and Group Chief Executive Officer Peter Kang'iri.

Adenia was founded in 2002 and has raised more than $1 billion across six funds. It has offices in Mauritius, Madagascar, Cameroon, Côte d'Ivoire, Ghana and Egypt.

Martha Osier, a partner at Adenia Partners, said the listing "will broaden ownership of the Company, introduce a public free float and enable Kenyan and other eligible investors to participate in Quickmart's future growth."

"The existing shareholder group intends to retain a substantial interest in the company following the offer, reflecting our continued confidence in the company and its long-term prospects."

Quickmart was founded in Nakuru in 2006 by the late John Kinuthia, a businessman.

He passed away in 2016. His son, Duncan Kinuthia, is now the managing director and his family has run the chain.

Tumaini was founded in the same year, 2006, in Nairobi's Eastlands area by Moses Nditika, Joram Ngeruro and Elijah Okello.

Nditika, a former supermarket attendant who worked his way up to a manager for over 20 years, started the business with his brother and a third partner using Sh5 million in savings and a Sh5 million loan from a Sacco.

The two chains merged in 2020, after Adenia invested in Tumaini in 2018 and in Quickmart in 2019, and rebranded under the Quickmart name.

Quickmart said it intends to list on the Main Investment Market Segment of the NSE, the bourse's main board for larger companies. The listing is subject to market conditions and approvals from the Capital Markets Authority (CMA) and the NSE.

But the structure is important. "No new shares will be issued by Quickmart and Quickmart will not receive any proceeds from the Offer," the company said.

Instead, Sokoni will sell two billion existing shares, representing 50 per cent of Quickmart. This is called an offer for sale. That means the current owners are selling their shares. The company itself is not issuing new shares.

If demand is strong, Sokoni may sell an extra 15 per cent of the offer shares. If it does not sell them, Sokoni is expected to keep about 50 per cent of Quickmart. If it does sell them, Sokoni's remaining stake would fall to about 42.5 per cent. The seller also cannot immediately sell its remaining shares for a period, known as a lock-up.

The money from the share sale will not go to Quickmart. It will go to Sokoni. Sokoni is the investment vehicle for Adenia Partners, the founders of Quickmart and Tumaini, and CEO Peter Kang'iri.

So, when Sokoni sells shares, the cash goes to Sokoni and then to the underlying holders. The statement says the sale will result in a "pro rata partial exit by the shareholders of SRKL." That means each sells the same slice of their indirect stake, in proportion to their holdings. They are not cashing out completely. They are taking some money off the table.

Quickmart gets no money from the listing under the deal. The selling shareholder will get the proceeds and pay expenses. The company said this is not a fundraising for new stores.

"Quickmart expects to continue funding its organic growth and store expansion primarily through internally generated cash flows."So the listing lets Kenyans own a share of a business they already shop in and creates a public market for the shares.

Right now, Sokoni owns 100 per cent. After the offer, the public would own 50 per cent, or up to 57.5 per cent if the extra shares are sold.

The listing also gives existing shareholders a chance to sell part of their investment while raising the company's profile and improving governance.

Listed companies must disclose more and follow market rules. Quickmart says it has governance, risk and financial control frameworks appropriate for a listed company.

The offer is expected to launch on or around September 30 this year.

The chain has already filed its draft information memorandum and submitted its application to the CMA and NSE.

The information memorandum, the document which has full details, risks and financials, has not yet been published or approved.

The offer is expected to be made in Kenya to Kenyan retail and institutional investors, investors in other East African Community Partner States and foreign investors where participation is lawful.

Quickmart was formed through the 2020 merger of Quickmart and Tumaini, backed by Adenia Partners.

It now operates 72 stores across 16 counties, including 35 stores open 24 hours a day. It has an estimated 15 per cent share of Kenya's modern grocery retail market.

Its Q-Points loyalty programme has about 2.5 million members, who accounted for about 74 per cent of sales in the 2025 financial year and the first half of 2026.

For the year that ended on December 31, 2025, Quickmart generated revenue of Sh50.4 billion and adjusted profit after tax of Sh1.7 billion.

Revenue grew at an average annual rate of 18.4 per cent between the 2021 financial year and the 2025 financial year.

For the first half of 2026, revenue was Sh27.3 billion.

The company has paid dividends totalling about Sh3.7 billion for the 2022 to 2025 financial years.

It expects to distribute about Sh2 billion and Sh2.5 billion in the 2026 financial year and 2027 financial year, representing payout ratios of 95.1 per cent and 90 per cent.

Quickmart did not disclose an offer price. Based on adjusted profit after tax of Sh1.7 billion in the 2025 financial year, a 15x to 20x price-to-earnings multiple, a common way to value consumer retail stocks, would imply an equity value of Sh25.5 billion to Sh34 billion.

The 50 per cent stake would then be worth Sh12.75 billion to Sh17 billion, according to some analysts.

That is an analyst estimate, not company guidance.

The listing would be the first major supermarket IPO on the NSE since Uchumi Supermarkets listed in 1992.

Uchumi later collapsed, and Nakumatt and Tuskys also failed, shattering confidence in Kenya's formal retail sector.