This archive report was first published on 28 October 2019.
On October 28, 2019, the Competition Authority of Kenya (CAK) gave the green light to Vivo Energy's proposed acquisition of KUKU Foods, the operator of American fast food chain Kentucky Fried Chicken (KFC) in the country.
The approval was based on the fact that the combined turnover of the two companies exceeded Ksh.1 billion in the preceding year, meeting the threshold for a merger.
CAK also noted that despite Vivo Energy being an oil importer and marketer, and KUKU Foods being a restaurant franchise, their business activities do not overlap.
According to the authority, the lines of business between the two companies are complementary, as fast food outlets can be set up in petroleum retail outlets, providing convenience to motorists.
KFC, which has a 15% market share in Kenya, has at least 24 outlets across major towns in the country.
The proposed transaction is unlikely to have an impact on the market share of the merged entity and will unlikely raise competition concerns, according to CAK.
