Muguku Family in Talks to Sell Sh9bn Waterfront Karen Mall

The family of the late billionaire poultry farmer Nelson Muguku is selling The Waterfront Karen Mall. The high-end Nairobi property sits at the centre of talks for a deal that could reach Sh9 billion.

A source close to the transaction says discussions are at an advanced stage. The move marks a clear pivot from real estate back toward other interests.

This reverses a 2014 strategy. The family then sold Nairobi bourse shares to fund property investments that produced the mall.

Ken Obimbo, the property manager, confirmed the family has been marketing the asset. “We have been in the market and we believe we have a serious buyer on the table,” he said.

Some conditions still need meeting before the sale closes, Obimbo added. He gave no further details, citing non-disclosure agreements with the prospective buyer.

The Waterfront opened in 2018 with a Sh3 billion valuation. The 200,000 square foot mall occupies 13 acres inside a larger 50-acre parcel. Naivas Supermarket now serves as anchor tenant after Shoprite’s exit.

Plans once called for high-end apartments, offices and a hotel on surrounding vacant land. A man-made lake and swampy zone cover nearly a third of the site, limiting easy development.

Earlier marketing materials highlighted the rarity of 50 contiguous acres in Karen. The profile described over 30 acres of undeveloped land as a major opportunity for mixed-use expansion.

Karen remains one of Nairobi’s most exclusive residential zones. It draws high-net-worth residents and visitors.

Broader retail trends have cooled returns. New malls built over the past decade increased supply and pressured rental yields. Foot traffic has slowed in larger centres.

Knight Frank reported 78 percent occupancy across prime retail space last year. The firm expects 2026 to favour neighbourhood centres and mixed-use projects over big regional malls. Supermarket chains are also pushing into middle-income neighbourhoods.

Nelson Muguku died in 2010 at age 78. He built a vast fortune from small-scale poultry farming in Kikuyu. His estate was valued around Sh10 billion at death, driven by Muguku Poultry Farm and a large Equity Bank stake.

The family later sold those shares. Had they held the original 6.08 percent position, it would now be worth Sh22.1 billion. Muguku also owned prime real estate including properties on Mfangano Street, in Kikuyu town, Stanbank House on Moi Avenue and nearby Cross Roads Shopping Centre.

The Waterfront sale would complete the family’s exit from its most prominent retail asset.