Vivo Energy forms JV to accelerate growth of KFC in Africa

A new joint venture with Kuku Foods will see Vivo Energy increase the number of KFC restaurants in Kenya, Uganda and Rwanda, including at Shell stations.

Vivo Energy plc (Vivo Energy), the pan-African retailer and distributor of Shell and Engen-branded fuels and lubricants, has agreed to form a non-fuel joint venture to accelerate the roll-out of KFC restaurants in Kenya, Uganda and Rwanda.

The 50:50 joint venture will manage and operate the restaurants in the three markets on behalf of Kuku Foods East Africa Holdings (Kuku Foods), who will remain the local KFC franchisee.

The restaurants, 22 in Kenya and 8 in Uganda, are located in shopping malls, city centre locations, and service stations. Kuku Foods plans to open its first KFC restaurant in Rwanda in 2019.

The 5 KFC restaurants operated by Kuku Foods Tanzania, the KFC franchisee in Tanzania, will not form part of the transaction.

“This partnership further demonstrates our ambition to continue to offer more convenience to satisfy the evolving needs of our growing number of African customers,” said Christian Chammas, CEO of Vivo Energy.

Kuku Foods is KFC’s East Africa franchisee in Kenya, Uganda and Tanzania. It was established in 2011 in Kenya. The business has expanded over the last eight years to 35 restaurants across East Africa.