Kenyan billionaire Naushad Merali has revealed that he is planning to build a Sh2.8 billion ($30 million) milk factory in Nakuru. The town is Africa’s fastest growing dairy market.
The investment will increase the competitiveness of Merali’s Sameer Group in the fast growing local dairy industry. It came as Sameer Agriculture & Livestock Ltd (SALL) disclosed its keenness to expand its production capacity. The company currently produces 180,000 litres of milk per day. In the last four years, Merali has invested Sh5.2 billion ($56 million) into his dairy business across East Africa. “The last five years have seen the company accomplish a number of projects in a bid to fight for a slice of local dairy products market and expand to East African Community,” said Mr Merali on Wednesday during the launching of its Creambell brand.
The dairy industry in Kenya has grown rapidly in recent times as demand for processed milk increase in the East African state. This expansion is being driven by a rapidly growing middle class with more disposable income and has attracted affluent investors like the Kenyatta family through its Brookside Dairy. Other investors include State-owned New Kenyan Cooperative Cremeries Ltd.
SALL owns a large market share in Kenya with its Daima brand of fresh milk and yoghurts. Merali also launched a Sh1.9 billion ($20 million) Ice-Cream production unit with a monthly production capacity of 500,000 litres.VENTURES AFRICA