Maize and wheat flour manufacturer Kitui Flour Mills Limited will acquire a 100 percent stake in Rafiki Millers Limited after the Competition Authority of Kenya (CAK) approval.

 Kitui Flour Mills is among Kenya’s producers of home products such as Premium Maize Flour, Dola Wheat Flour, Dola Chapati Flour, Atta Flour, and Baba Lao Maize Flour, among others.

“The proposed transaction involves the acquisition of 100% of the issued shares in Rafiki Millers Limited by Kitui Flour Mills Limited. The transaction, therefore, qualified as a merger within themeaning of Section 2 and 41 of the Competition Act No. 12 of 2010,” CAK said in a statement.

“The Act stipulates that a merger or takeover may occur when an undertaking directly or indirectly acquires control over another business within Kenya. This may happen through, among others, purchase/lease of shares, exchange of shares, or vertical integration.”

“Kitui Flour Mills Limited commands 13% of the wheat milling market and is the third largest firm behind Mombasa Maize Millers (22%) and Grain Industries Limited (15%),” CAK added.

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Before Rafiki Millers Limited shut down in 2021, it was involved in the wheat milling and confectionery business.

The acquisition is set to increase Kitui Flour Mills' capacity and market share after the takeover.