Pearl Dairy Farms Limited, the Ugandan company known for its Lato brand of milk, is in the process of acquiring a Kenyan milk company. This strategic move is intended to enhance its competitiveness in the local market and address challenges in the supply and distribution of its products within Kenya.
The acquisition is being pursued through Maziwa, a non-operating holding company incorporated in Mauritius. Maziwa has formally applied to the Comesa Competition Commission to secure a 100 percent stake in Highland Creamers & Food, a Kenyan milk company, as reported by The East African.
In Uganda, Maziwa operates through its subsidiary, Pearl Dairy Farms Limited, where it engages in the collection, processing, and sale of milk and related products. The acquisition of Highland Creamers & Food is expected to bolster the distribution network of Lato milk in Western Kenya.
This initiative comes in the wake of Kenya’s decision in March to permit Uganda’s Lato milk to invest in local dairy factories, a measure aimed at fostering competition within the dairy sector. The approval was granted following discussions between Moses Kuria, the Cabinet Secretary for Trade and Investments in Kenya, and Ramadan Ggoobi, the Permanent Secretary of Treasury in Uganda.
Pearl Dairy Farms, with its primary manufacturing facility located in Mbarara, currently stands as one of the prominent dairy exporters in the region. Its products are widely available in various markets, including Egypt, Kenya, Tanzania, DRC Congo, Zambia, Ethiopia, South Sudan, and Malawi.