Business

Kenya leads East Africa with merger and acquisition deals worth Sh79.2bn

Former Central Bank of Kenya (CBK) Governor Patrick Njoroge displays some of the new look Kenya shillings on June 3, 2019, during a press conference at his office in Nairobi. (Photo: Simon Maina/AFP)

By Amina Wako | Tuesday, April 2, 2024

East Africa reclaimed the top spot in merger and acquisition (M&A) deals activity among regions

Kenya has emerged as the frontrunner in merger and acquisition (M&A) deals in East Africa, recording transactions worth $600.3 million (Sh79.2 billion), according to a recent report.

The country's robust performance underscores its position as a key player in the regional economy.

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In 2022, Kenya ranked second in M&A activity, with transactions valued at $1.12 billion, trailing behind Sudan. However, Sudan dropped from the top spot in 2023 due to escalating civil unrest, paving the way for Kenya's resurgence as the leader in deal values, according to the DealMakers Africa report.

Last year, Kenya saw 95 deals, with notable transactions including the sale of James Finlay Kenya’s tea farms to Sri Lanka’s LOLC Holdings, valued at $23.6 million. Additionally, the sale of a 31.25 per cent stake in Lake Turkana Wind Power to asset manager BlackRock contributed to Kenya's strong performance.

Tanzania followed closely behind Kenya, recording M&A deals worth $284.9 million in 12 transactions. The joint venture between Taifa Gas and Delta Marimba, which established a $100 million liquefied petroleum gas (LPG) plant in northern Zambia, was one of Tanzania's most significant deals.

Uganda secured the third position with deals worth $245.5 million spread across 14 transactions, while Ethiopia recorded 10 deals valued at $181.7 million.

According to DealMakers Africa, East Africa reclaimed the top spot in M&A activity among regions, recording a total of 144 deals. Kenya and Nigeria stood out as powerhouses, with Kenya leading the region with 95 deals.

Ugandan conglomerate Sarrai Group and investment firm Rwimi Holdings made headlines with their acquisition of Hima Cement for $120 million, marking one of Uganda's top deals. The acquisition solidified Uganda's position in the regional M&A landscape.

Other countries in the region also witnessed notable M&A activity, with Eritrea sealing a major deal worth $166 million, Rwanda recording nine transactions valued at $116.6 million, Djibouti registering a single transaction worth $7.5 million, and Seychelles and Somalia each reporting a single undisclosed deal.