Kenya: Kenya Breweries will spend USD 33 mln to reposition itself in the market

Kenya Breweries, which a subsidiary of East Africa Breweries, will spend Sh2.5 billion (USD 33 mln) to reposition itself in the market and meet regulatory requirements, Allafrica announced on October 24. Although it dominates Kenya's beer and spirits market, the company's thirst for growth seems unquenchable. After reporting a Sh8.6 billion in pre-tax profit this year and being the biggest East African company in market capitalisation, EABL looks set for greater heights.

"The excellent results for the past year once again highlight that our strong focus on investing in all areas of our business, our people, our brands, innovation and our production continues to drive our success," says Mr Gerald Mahinda, the Group managing director, in a speech posted on the company's web site.

The brewery will spend the Sh2.5 billion to integrate its beers and spirits divisions by relocating UDV Kenya spirits production unit to the company's Ruaraka plant. This will make it possible for the company to maintain uniformity in its quality control standards, Mr Mahinda says.

The relocation, to be commissioned in November 2005 , will cost Sh500 million. The project will see the company install a state-of-the-art spirits bottling line.Of the total amount, Kenya Breweries has already spent Sh600 million on installing a new brew house, which has improved energy utilisation by 35 per cent.

To comply with environmental regulations, the company has invested Sh250 million in installing a new effluent treatment plant. The plant is designed to meet the National Environmental Management Authority (Nema) standards.

This suits the company's policy of maintaining the "ethics of environmental responsibility and undertakes to act in such a way as to protect and enhance both quality of life of the people of Kenya and environmental integrity of the communities in which they live and work," said Group chairman Jeremiah Kiereini in his annual report.

In order to keep up with the increasing demand, the company is investing in a new dual purpose vessel at a cost of Sh565 million and a yeast plant that will gulp Sh99 million.

A new production line is planned to cater for the new Senator Keg brand to meet increasing market. The new line will cost Sh500 million. Senator Keg is a lower market brand being positioned as an alternative to unlicensed liquors that continue to claim hundreds of lives in the slums and rural areas where people can't afford bottled beer. (1 USD = 74.01 KES)

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