Kitui Flour Mills Receives Approval for Rafiki Millers Acquisition

In a significant move within Kenya’s milling industry, Kitui Flour Mills Limited has received approval from the Competition Authority of Kenya (CAK) for its complete acquisition of Rafiki Millers. Rafiki Millers, which ceased operations in April 2021, was engaged in wheat milling and confectionery business, holding a 3% market share.

Kitui Flour Mills Limited, the third-largest miller in Kenya, commands a 13% share of the wheat milling market. Despite the acquisition, the market share of the merged entity is expected to remain unchanged, with competition expected from other players controlling 87% of the market. This acquisition places Kitui Flour Mills in a stronger position within the competitive landscape, following the closure of Rafiki Millers.

The CAK’s approval was granted after a thorough analysis, concluding that the transaction is unlikely to negatively impact competition in the wheat milling market and does not raise significant public interest concerns. The public interest considerations during merger analysis include the impact on employment opportunities, competitiveness of SMEs, impact on specific industries or sectors, and the ability of national industries to compete in international markets.

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With over 40 formal grain millers in Kenya, the Cereal Millers Association represents the majority, encompassing more than 85% of the total wheat milling capacity in the country. Notable members include Bakex, Baraka Maize Millers, Capwell Industries, ETG, Grain Industries Limited, Goldleafe Kenya Limited, Jamii Milling, Kenblest Group, and Kitui Flour Mills, among others.

This strategic acquisition positions Kitui Flour Mills to enhance its market presence and contribute to the continued growth and competitiveness of the milling industry in Kenya.

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Source: Kenya wall street