The Lower Eastern Times Opening The Third Eye
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The proprietors of Nairobi Flour Mills, known for processing Jimbi maize and wheat brands, have listed the business for sale at a price of Sh400 million.
This sale announcement reflects heightened activity in the packaged food industry, following closely after Kitui Flour Mills, trading under the Dola maize and wheat brand, acquired the assets of Rafiki Millers, which halted operations in April 2021.
Potential buyers of Nairobi Flour Mills will inherit its assets, including machinery, warehouses, offices, and two plots spanning 1.124 acres in Nairobi’s Industrial Area.
“The asking price is Sh400 million, open to negotiation. The owners have shuttered the milling facility. They find themselves too advanced in age to manage it, prompting the decision to sell,” a source familiar with the situation informed the media.
The facility, renowned for producing Jimbi maize and wheat products, comprises two production lines for two-kilogram flour packets and one line for one-kilogram packets, boasting a daily production capacity of 255 tonnes.
This sale follows closely after Kitui Flour Millers received the green light from the Competition Authority of Kenya (CAK) for the acquisition of Rafiki Millers.
Though the transaction value wasn’t disclosed by the regulator, it acknowledged that the merging entities possess combined assets exceeding Sh1 billion, necessitating regulatory clearance prior to finalizing the deal.
The industry has witnessed increased competition over the past decade, challenging established entities like Unga Group.
Kitui Flour Millers stands as the third-largest participant in the wheat milling sector, holding a 13 percent market share, trailing Mombasa Maize Millers with 22 percent and Grain Industries Limited with 15 percent.
Regulatory data indicates over 40 formal grain milling firms in Kenya, with a collective capacity to process more than 85 percent of the nation’s grain volume.
Other significant contenders in the wheat milling segment include Pembe Flour Mills (eight percent), Uzuri Foods Limited (seven percent), and Unga Limited (four percent).
Rising urbanization and the expansion of dining establishments fuel the demand for packaged maize and wheat products.
However, a significant portion of maize flour demand is fulfilled by informal and small-scale millers, predominantly in rural regions.
