The Competition Authority of Kenya (CAK) has cleared the US$40.1 million acquisition of Transglobal Cargo Centre Ltd, the operator of Africa Flight Services (AFS) at Jomo Kenyatta International Airport (JKIA), by German air cargo company Celebi Cargo GmbH.
- •AFS, owned by Kenyan businessman Peter Muthoka, handles about a third of export cargo at Kenya’s main airport including flowers, vegetables, and other time-sensitive goods.
- •The company also manages warehousing and ground handling, making it a key link in Nairobi’s logistics chain.
- •The JKIA handles roughly 400,000 tonnes of cargo a year, and it is slated to grow about 5% annually over the next five years, outpacing global growth.
On the import side, AFS accounts for roughly 20% of volumes, with Kenya Airways Cargo leading at 32%. Other major competitors include Swissport and Signon Group.
Celebi is active at the Frankfurt Airport in Germany and handles approximately 200,000 tonnes annually. It had no operations in Kenya before the deal and the acquisition establishes a foothold in East Africa as it positions to expand regionally.
The regulator noted that the deal meets Kenya’s mandatory notification threshold, as the parties’ combined turnover exceeds KSh 1 billion shillings. Because Celebi was previously absent from the local market, the acquisition is not expected to alter competitive dynamics. The authority also said the transaction poses no risk to employment or small businesses.
“With regard to the proposed transaction, Post-merger, the market share of the target will not change as the acquirer has no business presence in Kenya. Therefore, the structure and concentration of the market for cargo handling will not be affected. As such, the proposed transaction is unlikely to raise competition concerns,” CAK said in a statement.
The deal signals growing foreign interest in Kenya’s air cargo sector, where speed and reliability are critical to exports.
