While a significant number of Kenyan businesses are family-owned, a substantial portion of them struggle to extend beyond three generations.
Often, this phenomenon is linked to the absence of thorough succession strategies conceived by their originators.
The demise or incapacitation of principal founders frequently sparks internal conflicts within families, leading to the downfall of many enterprises.
However, amidst these challenges, some businesses have defied the odds, successfully weathering the exit of their founders and evolving into thriving entities.
In this article WOK looks at the 5 most powerful family businesses In Kenya
Chandaria Family
The Chandaria family, spearheaded by Mahesh Chandaria, 60, operates a diverse and thriving business empire.
Despite his inclination for privacy, Mahesh has allowed his uncle, Manu Chandaria, to assume the public spotlight throughout his business career.
Manu owns Comcraft Limited, a company focused on manufacturing steel and aluminum products like iron sheets and kitchenware.
Meanwhile, Mahesh oversees Chandaria Industries, which specializes in producing tissue paper and hygiene products.
Notably, Chandaria Industries has partnered with various companies, the United Nations, and even the US embassy to provide waste paper for recycling, while also disposing of sensitive documents for institutions like the Central Bank of Kenya (CBK).
Chandaria Industries’ success extends beyond recycling.
Over time, the family ventured into diverse sectors, including real estate, mining, banking, and car manufacturing.
Their real estate arm, Chandaria Properties, is flourishing, with holdings across Kenya, India, and Dubai.
They’ve partnered with Tatu City for new developments, and they’re planning a brokerage firm to facilitate property transactions.
Recently, the Chandaria family entered the venture capital sphere, investing in Mobius Motors, a Thika-based startup working on affordable vehicles for Africa.
In collaboration with Barclays Bank of Kenya, they also acquired First Assurance, a bancassurance model firm offering life insurance through Barclays.
Naivas Supermarket
Naivas Supermarket, often dubbed “Naivas,” reigns as Kenya’s largest supermarket chain, boasting over 84 stores and 8,000 employees as of June 2022.
The journey commenced in 1990, when Peter Mukuha Kago laid the foundation on July 27th. Upon his passing in 2010, the reins were passed to his heirs, including the director, David Mukuha, sustaining the family legacy.
The venture, generating around US$7.28 million (KSh 785 million) annually, has seen the Mukuha family divesting shares, differing from the fate of Nakumatt and Tuskys. Selling a 31.5% stake in 2020 for Sh6 billion, a consortium including IFC and DEG joined.
Amidst the competitive struggles, Naivas emerged triumphant where peers like Nakumatt Holdings, Uchumi Supermarkets, and Tuskys faltered due to overwhelming debt or management missteps.
Ramco Group
Ramco Group, a conglomerate of 50+ East African companies, spans print, hardware, manufacturing, office supplies, services, and property.
Established by Rambhai Patel in 1948, it began as a Nairobi hardware store, extending to Uganda, Tanzania, and Rwanda.
With 4,000+ employees, it yields USD300 million (Ksh34 billion) annually.
Managed by Rambhai’s six children, Kirit Patel leads as Chairman of this multinational enterprise.
ICEA Lion Group
The genesis of ICEA Lion Group traces back to 1974 when the late Philip Ndegwa, former Governor of the Central Bank of Kenya (CBK), founded First Chartered Securities.
This company went on to acquire the Insurance Company of East Africa (ICEA), evolving into the renowned ICEA Lion Group. With a footprint spanning Kenya, Uganda, and Tanzania, the conglomerate’s substantial investments encompass properties and shares valued in the billions across the continent.
A year ago, ICEA Lion Asset Management Limited bought five million units (shares) valued at Ksh32.5 million in property investment fund Ilam Fahari I-Reit which it manages.
The investment saw ICEA become the eighth largest shareholder of the Reit with a 2.76 percent stake.
Overseeing this vast enterprise are Ndegwa’s sons, James and Andrew, steering ICEA Lion Group’s legacy into the future.
Bidco Group
Founded in 1985 by Bhimji Depar Shah, Bidco Group has established itself as a significant player in various sectors including edible oils, fats, margarine, laundry bars and detergents, personal care products, animal feeds, and food and beverages.
A 2014 Forbes report underscored Bidco’s dominance, holding a 49 percent share of Kenya’s edible oils market.
Today, the legacy is in the capable hands of Shah’s sons, Vimal and Tarun, who lead the company into a new era of growth and innovation.
