Indian billionaire Ravi Jaipuria has joined Africa’s richest industrial players, Aliko Dangote and Mohammed Dewji, in intensifying the battle for Kenya’s fast-growing consumer market, following a $32 million acquisition by Varun Beverages.
Through its subsidiary, BL Industries Kenya, Varun Beverages has signed an agreement to acquire the dairy beverages, juices and packaged drinking water business of Devyani Food Industries Kenya, with the transaction expected to close by August 1, 2026.
The deal will hand Varun Beverages control of a 52-acre manufacturing facility in Nakuru—Kenya’s fourth-largest city—equipped with 17,500 square metres of built-up production space, modern machinery, advanced water purification systems, and key food safety certifications.
The acquisition significantly strengthens the company’s East African footprint and provides a ready-made platform to scale production in a market increasingly viewed as a gateway to regional expansion.
Jaipuria’s move comes on the back of a renewed and expanded partnership with PepsiCo, which recently extended Varun Beverages’ bottling rights in India through April 2049. The revised agreement also lifted restrictions that previously limited the company from pursuing non-PepsiCo product lines, giving it greater flexibility to diversify.
With the Nakuru facility, PepsiCo gains a second independent production base in Kenya, complementing existing operations in Nairobi and strengthening its ability to compete in a market long dominated by Coca-Cola.
Kenya’s beverage industry is rapidly becoming one of Africa’s most competitive, attracting deep-pocketed investors targeting its price-sensitive but expanding consumer base.
Dewji, through his MeTL Group, is investing $50 million in a new soft drinks plant in Mombasa, producing Mo Cola and other beverages designed to compete aggressively on price against global brands.
At the same time, Dangote is approaching Kenya from a broader industrial perspective, with plans to finance a large-scale refinery project in Lamu, further signaling confidence in the country’s economic potential.
These parallel investments highlight Kenya’s growing status as a strategic hub for both manufacturing and consumer goods in Africa, even as it continues to trail larger markets such as South Africa and Morocco.
For Varun Beverages, the Kenya deal represents a cleaner and more strategic entry point into East Africa after earlier attempts to acquire PepsiCo bottling assets in Tanzania and Ghana failed due to regulatory hurdles and unmet conditions.
Unlike those transactions, the Devyani Kenya deal is structurally simpler, as both companies are part of the Jaipuria family-controlled group, reducing execution risks.
Despite past setbacks, the company has continued to expand aggressively across the continent. It acquired South Africa’s Bevco for $158 million, securing franchise rights across multiple Southern African markets, and later moved to acquire local soft drinks producer Twizza.
In Central Africa, Varun Beverages is also developing new bottling plants in Kinshasa and Lubumbashi in the Democratic Republic of Congo, underscoring its long-term commitment to the region.
The latest deal reinforces a broader trend of rising interest from Asian and African billionaires seeking to capture Africa’s next wave of growth through consumer goods and industrial investments.
With increasing urbanisation, a youthful population, and rising demand for affordable products, Kenya is positioning itself as one of the continent’s most attractive entry points for multinational expansion.
For Jaipuria, the Nakuru acquisition is more than just a factory purchase—it is a strategic foothold in a rapidly evolving market where competition is intensifying and the race for consumer dominance is only just beginning.
Source: BIA
