7 March 2018

Kenya: SA Firm Buys Sh404 Million Shares in Kenyan Chain Big Square

A South-African based private equity fund has invested Sh404 million ($4 million) to acquire an undisclosed stake in Kenyan fast food chain Big Square.

Uqalo says its investment will expand its footprint from the current nine stores to 30 over the next four years.

This anticipated expansion will see Big Square take the fight for customers to the likes of Burger King, Kentucky Fried Chicken (KFC) and Domino's Pizza who have increased their presence locally in recent years.

"We're pleased to bring Uqalo into our business as a new partner so that we can bring our fresh, high quality and affordable dining-out experience to an increasing number of Kenyans," said Morne Deetlefs, Big Square's chief executive.

Big Square, which Mr Deetlefs founded in 2011, has branches in Westlands, Karen, Lavington, Gigiri, Kilimani, Thika Road, Lang'ata, Ngong Road and Mombasa Road.

Uqalo, which targets investments located in Kenya, Ethiopia and Nigeria, is primarily funded by Hong Kong-based supply chain and logistics conglomerate Fung Group.

According to the Uqalo's website, its strategy is to acquire minority stakes by investing between Sh202m and Sh506m ($2m and $5m) in "mature businesses" through equity or convertible debt.

The Fund has a five-year investment target. It currently owns a five per cent stake in business-to-business food supplier Twiga Foods, having invested separately in May 2016 and July 2017.

"We are delighted to support the team at Big Square in their expansion and the development of their offering to serve an ever increasing number of customers," said Sebastian McKinlay, Uqalo's East African representative.

Global brands have set up a local presence in recent years and are now expanding aggressively, attracted by an expanding middle class population.

The attractiveness of any location around the globe to fast-food chains is often seen as an acknowledgement of the rise in the number of people with high disposable incomes, a shift that investors in the outlets say has occurred in Kenya.


Obado to Face Murder of Sharon's Unborn Baby - Prosecutors

The State on Tuesday said it will amend charges facing Governor Okoth Obado to include the murder of a seven-month old… Read more »

See What Everyone is Watching

Copyright © 2018 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.