Category Archives: Almasi

Kenya Development Corporations Merged

July 2021 saw the announcement of the conclusion of merger plans for a Kenya Development Bank. In a gazette notice, the Government announced the creation of the Kenya Development Corporation in June 2021, which comprises the Industrial and Commercial Development Corporation (ICDC), the Tourism Finance Corporation (TFC) and IDB Capital (formerly known as the Industrial Development Bank).

Industrial & Commercial Development Corporation:

ICDC owns 89% of Development Bank of Kenya, 27% of East African Fisheries, 17% of Eveready Batteries, 18% of Funguo Investments, 20% of General Motors East Africa, 4% of IDB Capital, 46% of KWA Holdings (KWAL) 27% of Mountain Region Poultry, 28% of Sisibo Tea, 2% of Uchumi Supermarkets, 31% of Almasi Beverages, 20% of Aon Minet Insurance and 23% of Centum Investments. Through a defunct subsidiary also 5% of Panpaper Mills, and 100% of Kenatco Taxis and 100% of Kenatco Transport.

ICDC also owns Uchumi House and Finance House in Nairobi and plots in Mombasa, Eldama Ravine, Eldoret and Embu, with another next to Malindi airport.

Tourism Finance Corporation:

TFC has subsidiaries including the Bomas of Kenya, Kabarnet Hotel (98%), Sunset Hotel at Kisumu (95%). Also Kenya Safari Lodges (82%), Mt Elgon Lodge (73%), Buffalo Springs (41%), Golf Hotel at Kakamega (40%), Mountain Lodge at Nyeri (39%) as well as 9% of Mararal Lodge and 5% of the Ark. Also Kenya Hotel Properties i.e. Nairobi’s InterContinental Hotel (33%) and International Hotels Kenya i.e Nairobi’s Hilton Hotel (41%). It also owns 52% of African Tours & Hotels (in liquidation).

TFC, previously known as the Kenya Tourist Development Corporation, owns Utalii house, a building on Moi Avenue Nairobi and a plot on prime Nkrumah avenue in Mombasa

IDB Capital:

IDB owns 0.3% of Consolidated Bank, 0.9% of Nzoia Sugar and 0.3% of South Nyanza Sugar Company (Sony) and a sliver of the Africa Export-Import Bank (AfrExIm)

Other:

All assets, securities and systems of the three institutions are now vested in the new corporation.

Coca-Cola in Kenya 2017

Last night, Coke Studio Africa, the musical show from Coca-Cola had performances by Bebe Cool of Uganda and Falz the Bad Guy of Nigeria. They were amazing performances by top performers and I was fortunate to be at the earlier taping of the show. The production was very impressive to see live, the crowd at the taping was enthralled and it would not be a surprise if the two stars continue to perform together for many years after their first meeting in Nairobi. Coke Studio Africa, now in showing its 2017 edition, has done a lot to introduce musicians from different parts of Africa to new audiences in other parts of the continent – and the rest of the world through the Coke Studio Africa show clips which are available on YouTube and the new songs from each of the seasons that can be downloaded on a Coke Studio Africa app.

Bebe & Falz: Image from Coke Studio Africa

Besides the filming and production of Coke Studio Africa in Nairobi, Coca-Cola has had a busy year in Kenya. In the last few weeks, despite the Kenya election which usually sees a slowdown in corporate activities, they have had two major product launches – one for Minute Maid Pulpy Orange, and another for Coca-Cola Zero Sugar (formerly Coke Zero) which is now available in a wider variety of bottles.

At the same time, the acquisition of Coca-Cola Beverages Africa Proprietary (CCBA) by Coca-Cola was completed – for continues production of Keringet bottled water brand at Molo. CCBA  also bought out Equator Bottlers at Kisumu, the third largest Coca-Cola bottler in Kenya which supplies products in the Western Kenya.

At the same time Centum Investments which owns 27% of Nairobi bottlers, and 53.9% of Almasi Beverages – both bottlers of Coca-Cola products, also moved to increase their stake in Almasi by offering other shareholders Kshs 7 per share. Almasi had Kshs 7.8 billion of sales in 2016, and a pre-tax profit of Kshs 1.05 billion. Alamasi, the second largest bottler in Kenya behind Nairobi bottlers, and according to Centum – accounts for 28% of the volumes sold in 2016, which puts Coca-Cola sales in the country at  ~Kshs 28 billion.

Almasi Gets Juicy

A year after Centum took control of K-Rep Bank, Almasi Beverages and Genesis Kenya, they are now seeking more shares of Almasi.

In December, they were reported to have made an offer of Kshs 6 per share to minority shareholders of Almasi, a sum that they term as a 20% premium to when the company was formed in 2013. Payment will be within 10 days of the closing date f the offer to shareholders who accept and provide original share certificates.

This came after Centum shareholders had ratified the acquisition of an additional shareholding of  3% in Almasi (for Kshs 182 million) – resulting in Almasi Beverages becoming a subsidiary in which Centum holds an aggregate of 50.95% of the issued share capital.

$1 = Kshs 102.

Almasi & Coca-Cola

Almasi, the holding company for three Coca Cola bottling plants (Mt. Kenya Bottlers, Rift Valley Bottlers, Kisii Bottlers), had 2014 revenue Kshs 6.7 billion (up from 5.8 billion) and a pre-tax profit of Kshs 516 million (up from 256M). The company, which is 51% owned by Centum Investments, will pay out a dividend of 0.12 per shares (total Kshs 92 million) to shareholders.

The company has installed a new, and faster, glass bottling line and will launch a plastic bottling one at Nyeri in 2016, in line with trends in the beverage business where plastic, not glass bottles, are the preferred buy choice by consumers.

Almasi distributed about 29% of the Coca Cola products in Kenya, equally spread by the three plants and they see the governments plans for Northern and Eastern Kenya where improvements in infrastructure (around LAPSSET) and security over the next few years as an opportunity to open up new markets for their products.

The company also has a few tax claims from the Kenya Revenue Authority, but the directors don’t feel they will materialize.

$1 = Kshs 102