The family of late Kenyan billionaire and poultry entrepreneur Nelson Muguku is in advanced talks to sell The Waterfront Karen Mall in Nairobi in a deal valued at about Ksh9 billion ($69.6 million), according to a person familiar with the negotiations.

The proposed sale would mark a shift in the family’s investment strategy, returning its focus to other business interests after years of investing in commercial real estate.

The move also represents a reversal of a decision made more than a decade ago. In 2014, the family sold part of its shareholding in Equity Bank to finance property investments that led to the development of The Waterfront Karen Mall.

Ken Obimbo, the property’s manager, confirmed the asset is on the market.

“We have been in the market and we believe we have a serious buyer on the table,” Obimbo said. He said several conditions must still be met before the transaction can be completed and declined to identify the prospective buyer, citing confidentiality agreements.

Premium mall faces changing retail market

The Waterfront opened in 2018 with an estimated value of Ksh3 billion ($23.1 million). The 200,000-square-foot shopping centre sits on 13 acres within a 50-acre property in Karen, one of Nairobi’s most affluent suburbs. Naivas Supermarket is the anchor tenant following Shoprite’s exit from Kenya.

The wider property was originally earmarked for luxury apartments, office buildings and a hotel. However, a man-made lake and wetlands occupy nearly one-third of the land, limiting the amount available for development.

Marketing documents for the property have long highlighted the rarity of a contiguous 50-acre site in Karen, with more than 30 acres of undeveloped land offering potential for future mixed-use projects.

Kenya’s retail market shifts

The planned sale comes as Kenya’s retail property market adjusts to years of rapid expansion. A wave of new shopping malls has increased competition, putting pressure on rental income and slowing foot traffic at some large retail centres.

Knight Frank said prime retail occupancy reached 78% last year and expects neighbourhood shopping centres and mixed-use developments to outperform large regional malls in 2026 as supermarket chains expand into middle-income estates.

From poultry empire to property

Nelson Muguku, who died in 2010 at the age of 78, built his fortune from poultry farming before expanding into banking and real estate. His estate was estimated at about Ksh10 billion ($77.2 million), supported by Muguku Poultry Farm, prime commercial properties and a major stake in Equity Bank.

The Muguku family was once among Equity Bank’s largest shareholders but sold shares worth an estimated Ksh4 billion ($30.9 million) in 2016. Had it retained its original 6.08% holding, the stake would now be valued at about Ksh22.1 billion ($170.7 million).

The family also owns landmark commercial properties, including Stanbank House on Moi Avenue, Cross Roads Shopping Centre, Mfangano Street properties and real estate in Kikuyu.

If completed, the Waterfront Karen Mall transaction would mark the family’s exit from its best-known retail property investment.