Kitui Flour Mills, Kenya’s third-largest flour producer, has received approval from the Competition Authority of Kenya (CAK) to fully acquire Rafiki Millers, which closed its doors in 2021.
This move aims to strengthen Kitui Flour’s position in the wheat milling market while raising concerns about potential long-term competitive impacts.
Market Share Shakeup
While Rafiki held only a 3% market share, the combined entity still claims 13%, solidifying Kitui Flour Mill’s position behind Mombasa Maize Millers (22%) and Grain Industries Limited (15%).
“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for wheat milling nor elicit negative public interest concerns—the two key considerations during merger analysis,” noted CAK.
