Vivo Energy, the pan-African seller of Shell and Engen-branded fuels and lubricants has signed a deal with the owners of the fast food franchise Kuku Foods East Africa Holdings to acquire a 50 percent stake in KFC in East Africa. The joint venture formed between Vivo and Kuku Foods East Africa Holdings, will manage and expand KFC restaurants in the region. Under the partnership, new KFC outlets will be opened at Vivo’s properties in Kenya, Uganda and Rwanda. The 50:50 joint venture will manage and operate the restaurants in these markets on behalf of Kuku Foods. Completion of the transaction will be subject to standard legal agreements and regulatory approval.
The deal is in line with the increasing trend of Oil marketers to attract small consumer-focused business to their premises, and grow its non-fuel business. The model is meant to bring them rental income apart from increasing fuel sales. Kuku Foods operates 22 restaurants in Kenya and eight in Uganda. It has plans to open the first KFC restaurant in Rwanda this year. Vivo adopted a similar partnership model in Botswana and Côte d’Ivoire to grow non-fuel revenue by tapping on customer demands.
