Kenafric Industries: Private equity firms eye US$100M stake sale

KENYA – Private equity firms Amethis Finance and Metier Private Equity Ltd. are reportedly seeking buyers for their 40% stake in Kenafric Industries Ltd., East Africa’s leading confectionery producer. 

The sale, valued at over US$100 million, is being managed by South Africa’s Nedbank Group Ltd., with additional advisory support from Kenya’s I&M Burbridge Capital, Bloomberg has reported.

Amethis and Metier initially acquired their stake in Kenafric’s confectionery and culinary business in February 2017. The potential sale mirrors a growing trend of private equity exits in Africa as economic prospects improve.

Kenafric’s evolution and regional footprint

Founded in 1987 by the Shah family, Kenafric Industries has evolved from a footwear manufacturer into a diversified enterprise producing confectionery, beverages, stationery, and spices. 

With a robust retail network that reaches 40,000 outlets across East Africa, the company exports approximately 45% of its products, including its flagship gum line, which produces over 40 million pieces monthly.

Kenafric’s operational reach extends to Uganda, Tanzania, Rwanda, the Democratic Republic of Congo, and Malawi, supported by a fleet of 200 motorcycles that serve informal traders and emerging mini-markets.

Data from IndexBox highlights Kenya’s significant role in the regional confectionery trade. 

In 2024, the country’s export value for candy, sweets, and non-chocolate confectionery rose to US$80.5 million from US$59.4 million in 2023, with top export destinations including Uganda, Tanzania, and Congo.

Strategic partnerships and market expansion

In August 2022, Kenafric partnered with India’s Britannia Industries to acquire Britannia Foods, a struggling Kenyan biscuit maker, for KSh 2.4 billion (US$18.5M). This move expanded Kenafric’s product portfolio and market presence.

The proposed sale by Amethis and Metier comes amid heightened activity in Africa’s private equity space. 

According to the 2024 Deloitte Africa Private Equity Confidence Survey, secondary sales and strategic investor transactions are expected to dominate exit routes as growth prospects across the continent improve.

“In light of an expected uptick in the growth outlook in the next 12 to 24 months, exit activity is expected to pick up across all regions,” the survey noted.

While Kenafric and Nedbank have not commented on the matter, Metier stated that it is evaluating its position, which may lead to its exit.