Quickmart, a leading supermarket chain in Kenya, has terminated several contracts with its founders worth hundreds of millions of shillings as it prepares for its initial public offering (IPO). The move aims to improve corporate governance and reduce potential conflicts of interest. The contracts terminated include management fees paid to Sokoni Retail Kenya Limited and Sokoni Holdings Limited, which amounted to Sh208.4 million in the year ended December 2025.
The terminated contracts also include advisory services provided by Basic Land Investment Limited, Resource Business Investments Limited, Acres Advisors Limited, WLL Valued Added Limited, Mondin Consulting Limited, and Elijah Okello. These companies were paid hundreds of millions of shillings in recent years for services such as strategic oversight, operational guidance, financial management, and site planning. Quickmart disclosed that the termination of these contracts was done to improve corporate governance and ensure a more diverse shareholder base.
Quickmart's IPO, which opened on Monday last week and closes on October 30, 2026, will see current owners sell two billion shares in the company at an offer price of Sh7.5, placing the value of their partial exit at Sh15 billion. The retailer reported a net profit of Sh1.5 billion last year, rising from Sh1.1 billion the prior year, with sales increasing to Sh50.4 billion from Sh46.7 billion. The growth was attributed to opening more stores and increased shopping at existing outlets.
Despite the termination of contracts with related parties, Quickmart disclosed that a significant number of properties are leased from its founders. The retailer stated that these transactions are on standard commercial terms and do not contain any unusual terms. The company has 18 store locations subject to leases with related parties, which are enterprises controlled by the founders and directors of the company.
Quickmart's management has assured that there are no known conflicts between their duties to the company and their private interests or other obligations that could materially affect the offer shares. The retailer has favourable terms with its suppliers, which has contributed to its growth. Once listed on the Nairobi Securities Exchange (NSE), Quickmart will be the second publicly-traded retailer after Uchumi Supermarkets.
The termination of contracts with related parties and the IPO are seen as positive steps towards improving Quickmart's corporate governance and transparency. The move is expected to attract more investors and provide a better understanding of the company's operations and financial performance. Quickmart's growth strategy has been focused on expanding its store network and improving its services.
The IPO is a significant milestone for Quickmart, marking a new chapter in its growth and development. The company's listing on the NSE will provide investors with an opportunity to participate in its growth and success. With its improved corporate governance and transparency, Quickmart is well-positioned to achieve its growth objectives and become a leading player in the retail sector.
Key points
- Quickmart terminates contracts with founders worth hundreds of millions of shillings ahead of IPO.
- The move aims to improve corporate governance and reduce potential conflicts of interest.
- Quickmart's IPO will see current owners sell two billion shares in the company at an offer price of Sh7.5.
