Kenyan President Uhuru Kenyatta is set to earn millions of dollars from the sale of a family-owned stake in Brookside, Kenya’s largest dairy company.
On Friday, French food group Danone announced that it is acquiring a 40% stake in Brookside, as it seeks to expand its business outside Europe.
Brookside, which was founded in Kenya in 1993, produces and markets fresh milk, yoghurt and butter in Kenya, Tanzania and Uganda. The deal will see the Kenyatta family, of which Kenyan President Uhuru Kenyatta is its most prominent member, cut down its stake in the company from 90% to 50%. In 2009, the family sold off a 10% stake to an African-focused private equity firm Aureos Capital for a reported $18.7 million, valuing the company at $187 million at the time. Abraaj Capital, a Dubai-based emerging markets-focused investment firm subsequently acquired Aureos Capital in 2012 and will retain its 10% stake in the company. While the financial terms of the Danone deal has not been disclosed, analysts believe the French food company will be acquiring the stake in Brookside at a significant premium to its 2009 valuation, which means the Kenyatta family would earn an 8-figure windfall from the transaction, which could in turn mean millions in earnings for President Uhuru Kenyatta.
President Uhuru Kenyatta featured in FORBES’ inaugural ranking of the richest Africans in 2011. Apart from a controlling stake in Brookside, the Kenyatta family owns extensive land holdings across Kenya, as well as controlling stakes in Heritage Hotels, media firm Mediamax and Commercial Bank of Africa.