By Water East Africa Magazine
India’s Varun Beverages Limited (VBL), one of PepsiCo’s largest bottling partners outside the United States, has expanded its footprint into Kenya through the acquisition of the dairy beverages, juices and packaged drinking water business of Devyani Food Industries Kenya Limited (DFIL Kenya). The transaction, valued at US$32 million (approximately KSh4.1 billion), is expected to strengthen the company’s presence in Kenya and the wider East African market.
The acquisition will be undertaken by VBL Industries (Kenya) Limited, a wholly owned subsidiary of Varun Beverages, which will take over DFIL Kenya’s beverage operations and associated assets as a going concern. The deal is expected to be completed on or before 1 August 2026, subject to the fulfilment of agreed conditions.
At the centre of the transaction is a 52-acre manufacturing facility in Nakuru, strategically located along a national highway. The plant, with a built-up area of approximately 17,500 square metres, produces value-added dairy beverages, fruit juices and packaged drinking water. It is equipped with key processing infrastructure, including a reverse osmosis (RO) water treatment plant, boiler, effluent treatment system, diesel generator and air compressor, and holds internationally recognised food safety and quality certifications.
Varun Beverages said the acquisition will provide immediate access to an established manufacturing base and distribution network, enabling the company to accelerate its expansion strategy in Kenya while supporting future growth across East Africa. The investment is also expected to enhance the company’s capabilities in the packaged drinking water segment, a market experiencing rising demand as consumers increasingly seek safe and convenient drinking water products.
For Kenya’s beverage industry, the acquisition represents another significant foreign investment in food and beverage manufacturing. Industry analysts note that the entry of a global bottling company with extensive operational experience could stimulate greater competition, expand consumer choice and encourage further investment in modern production technologies and distribution infrastructure.
The deal also highlights growing investor confidence in Kenya’s consumer goods sector, particularly in value-added beverages and bottled water. As urbanisation, population growth and changing consumer preferences continue to drive demand, investments in efficient manufacturing and reliable water treatment systems are expected to play an increasingly important role in supporting the country’s food and beverage industry while contributing to economic growth and employment.