Healthcare outlets outpace supermarkets in retail expansion

Healthcare providers are emerging as the landlords’ favourite due to the fast growth of some outlets in the country, whose footprints have since surpassed those of supermarkets.

 A report from real estate consultancy Knight Frank has singled out Goodlife Pharmacy as one of these healthcare providers. The outlet closed the June 2026 period with a footprint of 150.

The other outlets growing their footprints at a fast pace are Gertrude’s Children’s Hospital and Equity Afia, a franchise of Equity Group Foundation under the Equity Group Holdings.

Just a month ago, Naivas supermarket, the country’s current largest supermarket chain by the number of outlets, opened its 114th store in Kamakis.

The Kenya Market Update by Knight Frank covering the first half of the year notes that as supermarkets are restrategising by moving closer to neighbourhoods and estates, healthcare retailers are emerging as the fastest-growing tenant segment utilising the same strategy of proximity.

“Healthcare retail continued to emerge as one of the fastest-growing occupier categories,” says Knight Frank in the report.

The report says pharmacy operators and outpatient healthcare providers accelerated branch expansion to improve accessibility within residential neighbourhoods and retail centres.

“Goodlife Pharmacy surpassed 150 outlets nationally during the review period, while Equity Afya and Gertrude’s Children’s Hospital continued expanding their outpatient clinic networks,” the report says.

It adds that during the period, online pharmacy platform MYDAWA also announced further investment to accelerate its omnichannel healthcare strategy, highlighting increasing convergence between physical retail space and digital healthcare delivery.

This omnichannel strategy of expansion has been informed by the evolving consumer behaviour amid rapid digital growth.

The report states that e-commerce penetration increased further during the review period, driven by improving internet access, widespread mobile money adoption

and increasing consumer preference for online shopping.

Rather than replacing physical retail, retailers are said to be increasingly adopting omnichannel business models integrating online ordering, click-and-collect services and home delivery alongside traditional store networks.

“This trend has increased demand for strategically located neighbourhood outlets capable of supporting last-mile fulfilment while maintaining convenient customer access,” the report says.

During the period, the report notes that local supermarket operators maintained an expansion strategy centred on convenience retail.

This saw QuickMart open its 67th and 68th branches at Basic Elgon View in Eldoret and along Ngong Road as Naivas established its 114th in Kamakis.

Jaza Supermarket, on the other hand, continued expanding its neighbourhood retail model by opening at least six new outlets targeting middle- and lower-income residential areas.

Uchumi also continued its turnaround strategy by reopening outlets at Lang’ata Hyper and Unicity Mall.

Even with the physical presence, Knight Frank notes that retailers have to go an extra mile to ensure footfall is sustained amid the current economic challenges.

“Footfall across established shopping centres remained healthy, supported by promotional campaigns, seasonal events and experiential offerings,” it says.

The report says although discretionary spending remained constrained by inflationary pressures during parts of the review period, grocery-anchored centres continued benefiting from consistent daily visitation driven by essential shopping.

“Retailers increasingly responded to consumer sensitivity by expanding value-oriented product ranges, promotional pricing and loyalty programmes to maintain market share,” it says.

Perhaps to improve footfall, malls are coming up with experiential shopping, which is also meant to increase the amount of time spent in the premises.

The report documents that during the review period, Promenade Mall introduced Smash & Play, further illustrating the growing importance of entertainment-led retail as landlords seek to differentiate shopping centres beyond traditional retail offerings.

“Experiential components including family entertainment centres, fitness facilities, children’s play areas and dining experiences continued to attract visitors and support

tenant performance, particularly during weekends and holiday periods,” the report says.

The report says convenience continues to define Kenya’s retail market, with developers and retailers increasingly prioritising neighbourhood and community-based retail formats in response to revealed consumer preferences.

This shift, it says, is also driven by intensifying competition to capture expenditure that continues to flow through the large informal retail sector, particularly within mid-and lower-middle-income residential areas.

“Consequently, the market has witnessed continued growth in smaller convenience malls within residential neighbourhoods and at petrol stations, with several supermarket chains partnering with fuel station operators to expand their footprint closer to consumers,” says Knight Frank in the report.