The Competition Authority has given a green light to oil retailer Vivo Energy to form a joint venture with Kuku Foods Kenya Limited.
Vivo is responsible for the distribution and marketing of Shell-branded fuels and lubricants to retail and commercial customers in Africa.
The deal will see Vivo Energy manage and operate restaurants on behalf of Kuku Foods Kenya Limited, which remains the local franchise holder of the KFC brand.
In a Gazette notice dated 3rd September, 2019, the Competition Authority authorised the proposed Investment in Kuku Foods Kenya Limited by Vivo Energy Investments.
“Pursuant to the provisions of section 46 (6) of the Competition Act, 2010, it is notified for general information that in exercise of the powers conferred upon the Competition Authority by section 46 (6) (a) (ii) of the Competition Act, the Competition Authority has authorized the proposed transaction,” said the notice signed by CAK.
Vivo Energy has a network of over 1,800 service stations in 15 countries and exports lubricants to a number of other African countries. It distributes and markets one of the most sought-after fuel and lubricant brands, operating an extensive retail network; major bulk oil storage terminals in Nairobi and Mombasa; aviation services at Jomo Kenyatta International Airport, Wilson Airport, Mombasa International Airport and Malindi Airport; and a lubricant blending plant in Mombasa.
Its entry into the fast foods business is expected to re-energize Kuku Foods East Africa Holdings, targeting improved customer satisfaction and market saturation.
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