Lipton Teas and Infusions (Lipton Kenya) has scrapped plans to acquire full ownership of Limuru Tea.
In July 2022, Lipton Kenya, already holding a majority stake (51.99%), announced its intention to buy remaining shares.This followed a change in Limuru Tea’s ownership structure.
However, Kenya’s Capital Markets Authority (CMA) suspended the mandatory takeover process in July 2022.On May 9, 2024, Lipton Kenya formally withdrew its offer to acquire remaining Limuru Tea shares.
This coincides with a UAE firm, B Commodities ME (FZE), expressing interest in indirectly acquiring Lipton Kenya’s existing Limuru Tea shares.
Additionally, Browns Investments, a Sri Lankan company, recently acquired Lipton’s tea estates in Kenya, Rwanda, and Tanzania, subject to regulatory approval. This includes some estates previously held by Limuru Tea.
Notably, as part of the Browns Investments deal, local communities in Bomet and Kericho will receive a 15% stake in the newly acquired company.
Uncertain Future for Limuru Tea Ownership:
Lipton’s withdrawal leaves the future ownership of Limuru Tea uncertain.
While B Commodities ME (FZE) has expressed interest, the Kenyan government may also play a role through the stake offered to local communities.
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