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Kenya’s standards body appoints Bernard Njiraini as managing director
KENYA – The Kenya Bureau of Standards (KEBS), the government agency responsible for governing and maintaining the standards and metreology has appointed Bernard Njiraini as its Managing Director, for a three-year term. Bernard Njiraini was serving as KEBS acting managing director since May this year, taking over from Mr. Bernard Nguyo – who was also in an acting capacity. Njiraini holds a BSc. degree in Mechanical Engineering from Jomo Kenyatta University of Agriculture and Technology and a Master of Science in Mechanical Engineering from the same University. He also holds Post Graduate Diploma in Strategic Studies from the University of Nairobi. He is also a member of the Institution of Engineers of Kenya (IEK). Mr. Njiraini is also the managing director of the Numerical Machining Complex for three years, a position he took early this year in January. Prior to his appointment, he was a Production Manager at the Kenya Ordnance Factory Corporation (KOFC). In his new capacity, Njiraini is expected to streamline the agency’s operations – that have come under scrutiny in the recent past. This has seen former managing directors ousted from office in unclear circumstances following claims of corruption. 30 OCTOBER 2019 | FOOD BUSINESS AFRICA
M&A
Kenya’s Quickmart Supermarket merges with Tumaini Self Service KENYA – Mauritius-based private equity firm Adenia Partners has concluded a deal to acquire majority stake at the emerging retailer Quickmart Supermarket through its special purpose vehicle Sokoni Retail Kenya, at an undisclosed amount. Sokoni Retail Kenya holds the controlling stake in Tumaini Self Service. The transaction will see Sokoni merge the operations of Quickmart and Tumaini Self to form a single retail operation under Quickmart brand name. The process has already been approved by industry regulator Competition Authority of Kenya (CAK) giving the investor a stronger footing in Kenya’s competitive formal retail space. Quick Mart Supermarkets has 11 branches operating in Nairobi, Nakuru and Kiambu counties while Tumaini has 13 branches in Nairobi, Kisumu and Kajiado counties. Through the merger, the company is set to create a network of 30 stores by the end of 2019 all located in the urban and peri-urban residential areas. Commenting on the merger, Quick Mart managing director Duncan Kinuthia and his Tumaini counterpart Moses Nditika issued a joint statement stating: “The RESEARCH
merger will bring together two emerging retail chains both undergoing rapid growth. The combined company will create a network of 30 stores at the end of 2019, all located in convenient neighbourhood locations,” the joint statement read. According to statement by CAK the transaction involved acquisition of over 50% of Tumaini’s shares. The combined turnover of the parties was over Ksh1 billion (US$10 million) for the year 2017, thus qualifying for the merger. Mr Peter Kang’iri has been appointed as Group CEO and managing director to steer the transition and implement business strategy and expansion. The operational tie-up will be implemented over a period of approximately 12 months after the legal merger takes effect. The merger is an indication that Kenya is still a promising spot for retail investments, benefiting from rising middle-class purchasing power and robust macroeconomic growth, even as the giants Carrefour and Shoprite take up their place as the leading international retailers in a market that was previously held by family owned retailers Nakumatt, Tuskys and Naivas.
SMEs control majority of food systems in Africa – AGRA study AFRICA – According to a recent report on 2019 Africa Agricultural Status by The Alliance for a Green Revolution in Africa (AGRA), 64% of food consumed across the continent is controlled by small and medium-sized enterprises (SMEs). The report indicates that the SMEs drive “quiet a revolution” across the continent’s agriculture sector by connecting smallholder farmers to markets. The businesses include food processors, wholesalers and retailers, service providers from transport and logistics to the sale of inputs, which are often women-led. The report indicates that only about 20% of the food consumed in Africa fits the notion of subsistence agriculture, meaning food is consumed directly by farming households growing it. The other 80% comprises of food which flows through private sector value chains managed by SMEs. The SMEs purchase commodities directly from smallholder farmers, process, package, transport and sell the food products to consumers. This has been due to the mushrooming of urban developments
leading to 80% of the total food basket of rural Africa to be purchased through supply chains. “This represents a shift from just decades ago. There has been a ‘quiet revolution’ in the agri-food private sector value chains, linking smallholder farmers to mushrooming urban markets. This has spurred farmers’ participation in food and farm input markets,” said Michigan State University’s Dr Thomas Reardon, a lead author of the report. He further added that over the past 25 years, there’s been an 800% increase in the volume of food being moved from rural areas to African cities. Describing how African farmers and SMEs are ready, waiting and willing to expand into new areas, Dr Agnes Kalibata, the President of Agra, noted that SMEs are the biggest investors in building markets for farmers today, and will likely remain so for the next 10-20 years. The report signals a renewed effort to bring SMEs into the light through investment and support to help them become vibrant and visible. FOODBUSINESSAFRICA.COM