By Rawlings Otini

American investment firm Texas Pacific Group (TPG) has deepened its stake in Kenya’s thriving milk sector after the government approved its acquisition of 33.9 per cent stake in local milk distributor Maziwa.

TPG acquired Maziwa through its fully-owned subsidiary Pledge Holdco Ltd. TPG is a private  fund that invests in firms through acquisitions and restructurings.

Regional player

Maziwa which is fully-owned by Bainne Holdings has a significant stake in Musty Distribution Ltd, a Kenyan firm whose main business is milk and its products distribution in Kenya, Uganda and Zambia under the brand ‘Lola’.

“The proposed transaction involves the acquisition of 33.9 per cent of Maziwa by Pledge Holdco, resulting in a joint control with other shareholders,” said the Competition Authority of Kenya.

Maziwa has a turnover of more than Sh1 billion.

Data from Kenya Dairy Board shows that Kenya produces about five billion litres of milk annually. About 2.3 billion litres is sold through milk bars and direct sales while another 500 million liters is sold as processed milk and its products.