KWAL to invest US$30m in new manufacturing facility to expand operations

KENYA – Kenya Wine Agencies Limited (KWAL), leading wines and spirits manufacturer in Kenya, has unveiled plans of investing more than US$30 million (Ksh 3 billion) in a new state-of-the-art production plant.

The investment is part of the company’s expansion plan as it seeks to consolidate its market share in the region’s alcoholic beverage market.

Speaking while commemorating the company’s 50 years of presence in Kenya, Ms. Lina Githuka, KWAL Managing Director, unveiled that the facility will be located in Tatu City with plans of breaking ground in 2020.

“Our bold step into the future is to announce that we shall soon be finalizing plans for the construction of an ultra-modern manufacturing facility in TATU city with the view of breaking ground during early 2020.

“This planned investment of more than Ksh. 3 billion (US$30 million) in a new facility will enable KWAL to meet consumer demand for our portfolio of fast growing brands and continue to localize production of our imported brands,” she said.

Ms Githuka noted that KWAL, whose major shareholder is South Africa’s leading wine and spirits manufacturer, Distell, has invested more than US$12 million (Ksh 1.2bn) in its expansion plan over the past few year.

“The investment will mark the first new production facility opened by KWAL in more than two decades and alongside the expansion of the distribution and marketing of our products will result in increased employment opportunities for Kenyans.

“It represents significant Foreign Direct Investment into the country which aligns to government’s Big 4 agenda and is a vote of confidence in our brands and the positive outlook in the Kenyan market” added Ms. Githuka.  

Established in 1969, KWAL has over the years developed from the foundations of a state owned enterprise to a private institution following the government’s decision in 2013 to offer 26% of its shareholding of KWAL to a strategic investor.

In 2017 KWAL’s long term partner, Distell, acquired an additional 26.43% stake from Centum and Industrial and Commercial Development Corporation (ICDC) effectively increasing its stake to 55.37% as the major shareholder.

The company which enjoys distribution rights of globally reputable brands including Viceroy, Amarula, Cellar Cask and Nederburg currently boasts of a of well distribution system countrywide that has seen the firm significantly grow its footprint.

KWAL recently launched local production of ciders which include Hunters Gold and Hunters Dry cider with future plans for the local production of Savanna.

KWAL’s top imported brands that are distributed locally include: Amarula Cream, 4th Street Wine, Savanna Cider, Nederburg, Cellar Cask, Drostdy Hof wine, Viceroy, Scottish Leader and Chamdor white and red juice.

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