The family of late billionaire businessman and poultry farming pioneer Nelson Muguku is in advanced discussions to sell Nairobi’s Waterfront Karen Mall in what is expected to be one of Kenya’s largest commercial property transactions in recent years. The deal is estimated to be worth as much as Sh9 billion, signaling a strategic shift away from retail real estate investments.
According to individuals familiar with the negotiations, the family is close to securing a buyer, although the transaction remains subject to the fulfilment of several conditions before it can be concluded.
Ken Obimbo, the property manager of The Waterfront, confirmed that discussions with a potential investor are underway but declined to reveal further details due to confidentiality agreements.
“We have been in the market and believe we have a serious buyer. There are still certain conditions that need to be met before the transaction is completed,” he said.
The proposed sale represents a significant change in direction for the Muguku family, which invested heavily in commercial real estate after disposing of substantial holdings on the Nairobi Securities Exchange (NSE) more than a decade ago. The Waterfront Karen Mall, launched in 2018 with an estimated value of Sh3 billion, became one of the family’s flagship property investments.
Located on approximately 13 acres within a larger 50-acre parcel in Karen, the shopping complex spans about 200,000 square feet and is currently anchored by Naivas Supermarket, which replaced South African retailer Shoprite following its exit from the mall.
The remaining land was initially earmarked for an ambitious mixed-use development featuring luxury residences, office space, hotels and recreational facilities. However, sources close to the project note that a substantial portion of the land is occupied by a man-made lake and surrounding wetlands, limiting its development potential.
Despite these constraints, the property has long been marketed as one of Karen’s most attractive investment opportunities due to its prime location and the availability of undeveloped land for future expansion.
The sale comes at a time when Kenya’s retail property sector is undergoing significant changes. Rapid construction of shopping centres over the past decade has increased competition, leading to softer rental yields and slower foot traffic in many malls. Investors have increasingly shifted their focus toward neighborhood shopping centers and mixed-use developments that cater to growing residential communities.
A recent report by Knight Frank noted that Kenya’s retail market is evolving away from large destination malls in favour of community-based retail spaces. The report also highlighted the expansion of major supermarket chains into middle-income neighborhoods, reflecting changing consumer behaviour and retailer preferences.
Nelson Muguku built one of Kenya’s most successful business empires through poultry farming before his death in 2010. His estate, valued at around Sh10 billion at the time, included extensive investments in agriculture, banking and real estate.
He was also one of the largest individual shareholders in Equity Bank, holding a 6.08 percent stake when the lender listed on the NSE. Although the family later disposed of those shares, the stake would today be valued at more than Sh22 billion had it been retained.
Beyond The Waterfront, the Muguku family owns other prominent commercial properties, including Stanbank House along Moi Avenue and Cross Roads Shopping Centre, both located in Nairobi.
Should the Waterfront sale proceed, it would mark one of the most notable commercial property disposals in Kenya this year and underscore the changing investment preferences of high-net-worth investors as the country’s retail real estate market continues to evolve.
