The Competition Authority of Kenya has given a nod for Sokoni Retail Kenya, a company incorporated in Mauritius on 23 August 2018, to take over Tumaini Self Service Limited.
The price tag pegged on the proposed acquisition of control of Tumaini has not been made in public.
Details of Tumaini’s revenues since it started its operations in 2008 has not be made available. Market estimates show that it grosses Ksh200 million annual turnover from its six branches.
“Pursuant to the provisions of section 46 (6) of the Competition Act, 2010, it is notified for the general information that in the exercise of powers conferred upon the Competition Authority by section 46 (6) (a) (ii) of the Competition Act, the Competition Authority has authorised the proposed transaction as set out herein,” said CAK’s director general Wang’ombe Kariuki on 13 November 2018 in a gazette notice.
Sokoni Retail Kenya’s registered address is on 2nd Floor, The Country Side, Vivea Business Park, Saint Pierre Mauritius.
The retail sector in Kenya is benefitting from rising middle-class purchasing power, robust macroeconomic growth and a surge of investment in high-end formal retail space, with a host of foreign retailers, brands and producers entering the market.
Although well-entrenched local players remain dominant in the supermarket segment, says Oxford Business Group, the entrance of France’s Carrefour in 2016 marked an increase in competition between local and foreign outlets for new market share. Other new entrants are Shoprite, Massmart Holding’s Game and Bostwana’s Choppies.
“ With urbanisation indicating strong potential for expansion into smaller cities and formal retail space in Nairobi approaching saturation, retailers will be looking to reorganise value chains,” read the retail market outlook in The Report: Kenya 2017.
According to Oxford Business Group, Kenya’s retail market Africa’s second most developed after South Africa, and the fastest growing sector within the continent.
Kenyans still dominate the $7 billion sector with 25 key players controlling 98.1 per cent of the market share, while foreign firms have a 1.79 per cent.