The Kenyan government has decided to divest from several firms it owns substantial or full stakes in, including Kenya Wine Holdings East Africa Limited (KHEAL). Managed by the Kenya Development Corporation (KDC), the government's stake in KHEAL has increased significantly. The government plans to sell its 0.1 percent shareholding in Kenya Wine Agencies Limited (KWAL), a subsidiary of KHEAL, and has invited local and foreign investors to bid for the stakes through the Privatisation Authority.
This decision marks a departure from the government's previous partnership with Heineken Beverages, which holds the majority stake in KHEAL. Heineken Beverages emerged after Heineken acquired South Africa's Distell Group, which valued KHEAL lower than what KDC disclosed. KHEAL has a diverse portfolio of alcoholic beverages, including popular brands like Kibao Vodka, Hunter's Choice, and Amarula.
Interested bidders must meet specific eligibility criteria, including legal registration, financial capacity, and providing bid security of KES10 million or its equivalent in US dollars. The divestiture process is part of the government's strategy to raise funds and stimulate private sector participation in Kenya's wines and spirits industry, contributing to economic growth and development. KWAL has also received recognition for compliance amid governmental efforts to regulate the alcohol industry and address illicit brews.
