Kigali: Kenyan retail giant Nakumatt – owning the biggest supermarket here, says it will not stop expanding even after it failed to get about $25million in new capital.

The East Africa's largest retail chain in terms of branch network missed the Kenyan Sh2 billion it hoped to raise from sale of a 30 per cent stake, but says the expansion plans go on with three new branches across Kenya.

Mr Atul Shah, managing director, said attempts to raise more capital to bolster the aggressive expansion programme that saw it acquire a rival supermarket for Sh400 million in March failed because investors undervalued the supermarket.

"The offers for the purchase of the 30 per cent stake fell short of our expectations by a wide margin; we were not getting the right value. As a result we have shelved those plans for one year,” Shah told Business Daily.

“Our focus is to plough in earnings from our operations to increase our branch network," said Mr Shah, but declined to mention the offers that the investors had put on the table.

Ever since Nakumatt opened shop in Kigali, is has maintained the grip on the local supermarket business. It has the biggest supermarket in Rwanda, with plans to open more branches around Kigali and other places.

The retail chain's expansion programme comes on the heels of recent consumer confidence surveys indicating that most consumers have slowed down on expenditures.

A survey by private research firm TNS Research International last month indicated that consumer confidence index which had been on the rise for three consecutive months into March, declined into June.

The quarterly index now stands at 115 down from 120 points in March as a result of increasing uncertainty about the future prospects for business, labour market, crime and corruption.

Consumer confidence is an indicator for economic trends as the degree of optimism of consumers regarding the state of the economy is directly reflected in their spending and saving behaviour.