Brookside Dairy Limited, a Kenyatta family business, faces a significant challenge after Tanzanian President John Pombe Magufuli ordered the company not to collect milk from Tanzania.
Magufuli made the announcement while speaking to private investors in Tanzania, stating that Brookside's intention is not to help Tanzanians but rather to benefit the company's owners. He explained that when Brookside collected milk from Tanzania, it was supplied at low prices but later sold back to Tanzanians at high prices.
The President emphasized his desire to see no further association with Brookside in Tanzania. This decision comes after Brookside was initially banned from operating in Tanzania in 2009 by then-President Jakaya Kikwete. Despite expressing interest in re-entering the market in 2016, Magufuli's statement appears to be the final obstacle to the company's plans for expansion beyond Kenya and Uganda.
Brookside is managed by Muhoho Kenyatta, the younger brother of Uhuru Kenyatta, who also oversees CBA Bank. The company has acquired several local milk processing businesses, including Molo Milk and Delamere, resulting in control of over 60% of the market share.
