UK government invests Sh1.94 billion in Quickmart ahead of NSE listing

UK government invests Sh1.94 billion in Quickmart ahead of NSE listing

The investment, made through the Foreign, Commonwealth and Development Office (FCDO)’s MOBILIST programme, represents about 13 per cent of the Sh15 billion offer and an estimated 6.5 per cent stake in the retailer.

The United Kingdom government has committed Sh1.94 billion to Quickmart’s planned initial public offering (IPO), seeking to acquire 260 million shares in the retailer as it prepares to list on the Nairobi Securities Exchange (NSE).

The investment, made through the Foreign, Commonwealth and Development Office (FCDO)’s MOBILIST programme, represents about 13 per cent of the Sh15 billion offer and an estimated 6.5 per cent stake in the retailer.

MOBILIST joins the International Finance Corporation (IFC), the World Bank’s private sector investment arm, which has made a conditional commitment to purchase up to $15 million (Sh1.94 billion) in shares, subject to approval by its board.

The two investors’ commitments provide support for the IPO, which values Quickmart at approximately Sh30 billion.

Peter Kang’iri, Quickmart’s Group Chief Executive Officer, said the investment would support the company’s plan to widen ownership and create long-term value.

“We welcome MOBILIST as an investment partner as we broaden QuickMart’s ownership. We have built QuickMart around a straightforward proposition: to make fresh food and everyday essentials accessible, run our stores efficiently and reinvest the cash the business generates in disciplined growth,” he said.

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“With MOBILIST’s support, our proposed listing will help to realise QuickMart’s ambition to create long-term shareholder value while expanding opportunities for our suppliers, creating jobs, impacting the economy, and bringing convenient, affordable shopping to more communities.”

MOBILIST is the UK government’s flagship public-markets programme, investing capital, providing technical support, conducting research and building partnerships to encourage new investment products to list on public markets.

Its investment in Quickmart builds on a 2024 partnership with the NSE aimed at widening investment opportunities and encouraging participation by Kenyan institutions, including pension funds.

Earlier in 2026, MOBILIST invested $9 million in the listing of Africa Logistics Properties Industrial Real Estate Investment Trust (ALP REIT). It also invested about Sh1.2 billion in the Spearhead Africa Infrastructure Fund, Kenya’s first listed infrastructure fund, which raised Sh3.4 billion to provide long-term infrastructure financing in local currency.

Another account of the ALP REIT transaction reported that the fund raised Sh3.82 billion.

Cornerstone investors agree in advance to purchase shares in an IPO, signalling confidence in the offer to other potential investors. However, the IFC has clarified that its participation in Quickmart’s share sale does not amount to an endorsement or recommendation for other investors to take part.

The IFC previously participated in a consortium that bought and later sold a 31.5 per cent stake in Naivas between 2020 and 2022.

Quickmart operates 72 stores across 16 counties and is Kenya’s second-largest retail chain behind Naivas by store count and turnover, with an estimated 15 per cent market share.

In the year ended December 2025, the retailer recorded revenue of Sh50.43 billion, up 9.3 per cent, while net profit increased by 33 per cent to Sh1.51 billion. It paid shareholders Sh1.65 billion in dividends, representing a payout ratio of 109 per cent, and plans to distribute at least 80 per cent of its earnings to shareholders in the coming years.

The company’s growth plans include opening more stores, increasing sales at existing outlets, expanding digital channels and improving operational efficiency. Most of its organic growth is expected to be funded through cash generated by its operations.

The IPO involves the sale of two billion existing ordinary shares, representing 50 per cent of Quickmart’s issued share capital, at Sh7.50 each. The shares are being offered by Sokoni Retail Kenya Limited (SRKL), through which the current owners hold their investment.

These include Mauritius-registered private equity firm Adenia Partners, the founders of Quickmart and Tumaini supermarkets, and Chief Executive Officer Peter Kang’iri.

No new shares are being issued by Quickmart.

Kenyan institutional investors have been allocated 35 per cent of the offer, equivalent to 17.5 per cent of the company’s issued shares if fully taken up. Local retail investors and foreign investors have each been allocated 20 per cent, while East African Community investors have 12 per cent and the IFC 13 per cent. The allocations may change depending on subscription levels in each category.

The offer closes at 5:00 p.m. East Africa Time on October 30, 2026, with trading expected to begin on the NSE on November 12, subject to the offer conditions and any announced changes to the timetable.

Investors can consult the approved Information Memorandum at ipo.quickmart.co.ke for the full offer terms, risks and application procedures.