Vivo Energy, operator of Shell and Engen fuel brands, has finalized a 50% equity partnership with Kuku Foods East Africa Holdings to manage and expand KFC restaurants across East Africa. The joint venture will leverage Vivo's retail infrastructure to establish new outlets at its service stations and commercial properties in Kenya, Uganda, and Rwanda.
Kuku Foods will retain its role as the local KFC franchisee while the partnership focuses on increasing restaurant density. Vivo Energy CEO Christian Chammas stated the deal aligns with the company's strategy to diversify revenue streams through non-fuel retail ventures. The agreement includes 22 KFC locations in Kenya and eight in Uganda, with plans to open the first Rwandan outlet in 2019.
Notably, the transaction excludes Kuku Foods' five KFC restaurants in Tanzania and the country's franchise agreement. This marks Vivo's second regional joint venture after similar arrangements in Botswana and Côte d'Ivoire, where the model has been used to integrate food services with fuel retail networks.
