Kenya Breweries unveils US$9.2m fund to boost sorghum production

KENYA – Leading alcoholic brewer Kenya Breweries Limited (KBL), has unveiled a KSh1 billion (US$9.2 million) fund to promote commercial production of a traditional sorghum variety that has been found a suitable alternative for brewing Senator Keg brand. The Nairobi Securities Exchange-listed brewer is targeting to recruit more than 15,000 farmers in western Kenya in its latest efforts to ramp up production volumes and the funds will be used in the promotion and provision of seeds and for buying sorghum from the farmers. According to KBL western regional agribusiness manager Eliud…

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EABL ups its stake in Serengeti Breweries with acquisition of an additional 30% stake

TANZANIA – East African Breweries Limited, majority-owned by British multinational alcoholic beverage company Diageo, has increases its ownership in its Tanzanian subsidiary, Serengeti Breweries to 85% following the acquisition of additional stake. The deal comes more than a year after the brewer had revealed its intentions of acquiring an additional 30% stake in the Tanzanian unit in March 2020, after identifying the booming beer and spirits market in East Africa’s largest country. “We got one minority shares. We decided to buy them out and they also wanted to sell. The…

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Diageo seeking to aggregate its share holding in East Africa Breweries Limited through intra-group share transfer

KENYA – Diageo plc, multinational alcoholic beverages company, holding 50.03% stake in East African Breweries Limited (EABL) through three of its wholly owned subsidiaries i.e. Diageo Kenya Limited, Guinness Overseas Limited and Diageo Holdings Netherlands B.V is seeking to transfer all its EABL shares to Diageo Kenya. According to a statement by EABL, Diageo plc holds 395,608,434 ordinary shares of the company with Diageo Kenya Limited having 338,618,340 shares (42.82%); Guinness Overseas Limited holding 20,628,804 shares (2.61%) and Diageo Holdings Netherlands B.V. securing 36,361,290 shares (4.6%). The move is part of…

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East African Breweries to raise stake in Serengeti Breweries by 30%

EAST AFRICA – East African Breweries Limited (EABL) seeks to acquire an additional 30 percent stake in its Tanzanian subsidiary, Serengeti Breweries Limited, in a deal that will deepen its grip. The deal comes barely a year after the brewer spent Sh313 million (US$2.9m) last July to acquire four percent additional stake in Serengeti. “EABL intends to enter into a conditional transaction to purchase an additional 30 percent shareholding in Serengeti Breweries. Completion of the transaction is subject to various regulatory approvals in Kenya and Tanzania,” EABL said in a…

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East African Breweries reports a 9% rise in profit after tax to US$71.6m

KENYA – East African Breweries Limited (EABL), has reported a 9% increase in profit after tax to Kshs 7.2 billion (US$71.6m) for the half-year period ended 31 December 2019. The company’s performance was boosted by increased investment and operational efficiencies across markets and segments, despite increases in alcoholic beverage taxes. Net sales rose 10% to Kshs 45.9 billion (US$456m), driven by higher volumes which rose by 5% across the Group and categories, and better price mix across all brands. Net sales in EABL’s largest market, Kenya, grew by 8%, with…

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East African Breweries Limited appoints Martin Oduor-Otieno as the new Chairman

KENYA – East African Breweries Limited (EABL) has announced the appointment of Martin Oduor-Otieno, currently an independent non-executive director of the firm’s board as its new chairman, effective January 1, 2020. He takes over from Charles Muchene who successfully completed his maximum tenure of nine years allowed for independent directors under the Corporate Governance Code issued by the Capital Markets Authority. Muchene, the former Country Senior Partner at PricewaterhouseCoopers joined EABL board as an independent non-executive director in February 2011. He has served as chairman since February 2012. Under his…

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