Yaya Centre Sold: Biwott Family to Kantaria
The consortium of investors has purchased Nairobi’s iconic Yaya Centre shopping complex in a private transaction for a substantial sum, reportedly worth billions of shillings. The sale was conducted by the family of the late former influential Cabinet Minister, Nicholas Biwott.
Yaya Centre, situated in Kilimani, is among Kenya’s longest-standing high-end shopping malls. It has been linked with Mr. Biwott, the deceased billionaire politician and businessman, who was a trusted ally of former President Daniel Moi for many years.
Mr. Biwott departed in July 2017 following an extended period of illness, and he left behind valuable assets both within the country and overseas.
The affluent Kantaria family, known for their wealth, has recently acquired ownership of Yaya Centre, further expanding their interests in the hospitality sector.
“Commercial details of the purchase are bound by confidentiality agreements,” the Yaya Centre property manager Edna Fernandes said in response to GossipA2Z.Com queries.
The Yaya Centre shopping mall and the luxurious Yaya Apartments and Hotel were acquired by the Kantaria consortium in a confidential deal.
Insiders knowledgeable about the deal and information accessible to the public suggest that the Yaya Centre transaction was worth billions of shillings, despite the involved parties choosing to keep the specific amount undisclosed.
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In 1997, the Yaya Centre was awarded to H.Z. Engineering and Construction Company, which was under the ownership of Mr. Biwott, by the High Court. This came after a legal dispute where the company sought ownership of the shopping complex from the Deposit Protection Fund Board of the Central Bank of Kenya.
The legal proceedings originated from the downfall of Trade Bank, an institution linked to Mr. Biwott. During that period, Yaya Centre was estimated to be worth Sh3 billion.
A source familiar with the deal, but who spoke in confidence, told GossipA2Z.Com: “The transaction was valued not just based on the land but on the worth of the running business which has recorded a high occupancy rate for many years and is therefore priced at a premium, certainly in the billions of shillings.”
According to Ms. Fernandes, Yaya Centre has maintained a consistent occupancy rate of approximately 95%. This suggests that its appeal of being close to Nairobi’s central business district continues to be influential in attracting customers despite fluctuations in the overall economic performance.
The market for shopping malls in Kenya experiences infrequent takeover deals, resulting in challenges when attempting to assess the relative value of a buyout.
Yaya Centre stands as one of the original shopping complexes in Nairobi, renowned for its enduring presence and excellent central location, akin to the Sarit Centre and The Mall in Wetlands.
The sale represents a notable transfer of wealth to the heirs of the Biwott family. In 2020, they also sold the shares owned by the former minister in the oil marketing company KenolKobil to the French multinational Rubis, in a separate transaction worth billions of shillings.
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Wells Petroleum Holdings Limited, representing the Biwott estate, made a significant revenue of Sh8.4 billion by selling their 24.99 percent stake in KenolKobil.
The Kantarias, led by Rasik Kantaria, are renowned for their control of Prime Bank, which primarily caters to a dedicated clientele of medium to large businesses.
In 2020, during the Covid-19 pandemic, the discreet acquisition of the Yaya Centre marked a significant expansion into the hospitality sector for the company. This move was complemented by another collaboration with three investor families to launch the Radisson Blu Arboretum Hotel in February of the same year.
The strategic placement of Radisson Blu Arboretum, directly across from State House Nairobi, provides it with the unique benefit of enhanced security from the ever-present presidential guards. This additional layer of security is particularly appealing to discerning international guests, making it a preferred choice for hosting business conferences.
The Kantarias are proprietors of the Capital Centre Mall situated on Mombasa Road. This shopping complex is designed to cater to the middle class and hosts over 60 retail outlets and dining establishments, such as Absa Bank, Artcaffe, Bata, Java, and Urban.
One of their upscale investments includes the plush West End in Nairobi.
Beyond the main city, the Kantaria family possesses the Leisure Lodge Beach and Golf Resort in Diani. They have recently changed its name to Diamonds Leisure Beach and Golf Resort following the establishment of a management agreement with the renowned international brand, Diamonds Resorts.
In a manner reminiscent of their previous move in acquiring Radisson Blu Arboretum in 2020, the Kantaria family once again joined forces with a consortium of investors to successfully purchase Yaya Centre from the Biwott family.
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Ms. Fernades, a former executive at Knight Frank, was sought for her management expertise. With a wealth of experience in overseeing 13 malls in Kenya and handling mixed-use developments, she brought valuable skills to the team.
For more than forty years, Yaya Centre has served as a renowned shopping mall catering to Kenya’s affluent community, boasting consistently high occupancy rates due to its strategic location near Nairobi’s central business district.
Recently, there has been an emergence of more modern and stylish shopping centers, such as The Hub in Karen, The Junction, Westgate, and the Two Rivers Mall. These malls fall into the category of shopping centers with an area of 20,000 square meters or more.
Currently, the Kantaria consortium faces the task of maintaining the Yaya Centre’s advantageous position amidst growing competition.
The Village Market, which is one of the older high-end shopping centers, has recently made a significant investment in a renovation and expansion project. This initiative aims to enhance the variety of options available to its affluent clientele.
“Yaya Centre is a landmark which has been a popular shopping and hospitality destination for over 40 years, and we’re excited about its future,” says Ms Fernandes.
She mentions that Yaya has recently renovated its hotel, featuring 70 serviced apartments, to distinguish it from other five-star residences in the market.
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“We will be making announcements in due course about our additional plans for Yaya and how they will expand and spur more economic growth,” says Ms Fernandes.
One of the primary concerns for the recent investors is the long-standing issue of the Yaya Centre’s “West Wing” construction, which has been at a standstill for more than thirty years due to a documented dispute with the contractor.
According to Ms. Fernandes, the new management is currently examining strategies to ensure the towers become profitable. Additionally, there are discussions about forming a fresh franchise agreement with the well-known hotel brand, Courtyard by Marriott. However, Ms. Fernandes is cautious and reserved about revealing specific details at this point.
“No franchise agreement has been signed with Marriott or any other brand yet,” she says.
Yaya Centre Sold: Biwott Family to Kantaria
