Wal-Mart's move to get a strong presence in the East African retail industry had hit a hurdle. This was after Kenyan retailer Naivas said last Wednesday that it would no longer sell a controlling stake to Massmart, a subsidiary of the US company.

The strong economic growth in Africa had been attracting global retailers including Wal-Mart Stores Inc. Two years ago, Wal-Mart acquired Massmart for USD2.4 billion. According to the World Bank, the Sub-Saharan African economic growth would grow 4.9% this year. This was after last year's growth of 4.2%.

According to analysts, the scarcity of suitable land and high valuations had been hindering the ambitions of Naivas to expand around the rest of Africa. In August, Naivas Chairman Simon Mukuha said that the company had been looking to sell a majority stake to Massmart. Naivas had been looking to sell 50% plus one share, said a report from Reuters.

Naivas administration manager Gilbert Mwangi told Reuters, "We are fattening our cow. As and when we are ready we will do that (sell) but as it is now we are not.They (talks with Massmart) are off. We are not selling now."