Kwal yet to complete sale of shares to staff a year after deal was mooted

Kenya Wines Agencies Ltd (Kwal) is yet to complete the sale of shares to employees more than a year after the deal was announced, owing to delayed paperwork.

The Privatisation Commission said the employee stock ownership plan will now be completed by the end of June with workers buying 3.84 million shares in the wines and spirits maker at Sh34.46 apiece.

The staff share sale deal was due to close in May last year, after the government disposed of a 26 per cent stake in Kwal to South African firm Distell for Sh860 million.

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“There have been delays with the paperwork. We followed up and the new timetable shows we’ll finish this in two months’ time,” said a source at the privatisation agency who did not wish to be named.

Felix Kariuki is now acting managing director at Kwal following the exit of long-serving boss Edwin Kinyua who completed his term in February.

“His contract came to an end. He wasn’t pushed out by Distell,” said our source who is not authorised to speak on behalf of the government. State-owned ICDC remains Kwal’s biggest shareholder with a 42.65 per cent stake, Centum (26.43 per cent), Distell (26 per cent) and employees four per cent.

The government, through the Industrial and Commercial Development Corporation (ICDC), previously owned a 72.65 per cent shareholding in Kwal, before selling part of its stake to the South African firm and employees.

The Treasury has so far earned Sh992.3 million from the privatisation of Kwal and stands to earn at least Sh1.4 billion when it disposes the remaining stake in the wines, spirits and flavoured alcoholic beverages producer and marketer.

Kwal’s iconic brands include Kingfisher, Kibao Vodka, Hunters Choice, Simba Cane, Beehive Brandy, Yatta Grape Juice and Yatta Wines.