The Competition Authority has approved five investors' acquisition of KEL Chemicals Ltd by five investors.

The approval followed a determination that the takeover will have no negative impact on competition or attract negative public interest.

The five investors include; Jeetendra Kumar Somchand, Mahendra Kumar Somchand Haria, Pankaj Somchand Haria, Pradip Somchand Haria, and Deveshkumar Bhupendrabhai Patel.

“The proposed transaction involves the acquisition of all shares in Kel Chemicals Limited by the aforementioned five (5) individuals,” read part of the statement by CAK.

“The transaction, therefore, qualified as a merger within the meaning of Section 2 and 41 of the Competition Act No. 12 of 2010. The Act stipulates that a merger, or takeover, may occur when an undertaking directly or indirectly acquires control over another business within Kenya.”

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KEL manufactures phosphate fertilisers, water treatment products, and sulfuric acid-based industrial chemicals.

Kenya's economy is dominated by agriculture, which in 2021 will account for 22.4% of the nation's GDP.

Nitrogen, phosphorus, and potassium (NPK), three essential components in plant nutrition, are present in several modern chemical fertilisers.

Commodity NPKs still account for most fertiliser use in Kenya, although new products are being developed to address crop-specific nutrient requirements based on perceived nutrient deficits.

Diammonium phosphate (DAP) according to research by the International Fertiliser Development Centre (IFDC), Diammonium phosphate (DAP) accounts for 46% of the fertilisers traded locally.

With a 35 per cent market share, ETG Kenya Ltd. dominates the fertiliser industry, followed by YARA Kenya Ltd. (25 per cent) and Supply & Service Ltd. (15 per cent).

The remaining companies include Elgon Kenya Ltd. (9%) MEA Ltd. (4%) Amiran Kenya Ltd. (3%) Toyota Tshusho (3%) Minjingu Mining Ltd. (2%) Athi River Mining Ltd. (1%) Kel Chemicals (0.40%), and others (2.6%).