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IFC eyes Sh1.3bn equity investment in Pollman’s owner
An elephant passes in front of a tourist van in Maasai Mara game reserve. IFC plans a $10 million equity investment in Safari Holdings to boost tour operations across Kenya and Tanzania.
The International Finance Corporation (IFC) is proposing to make an equity investment of $10 million (Sh1.29 billion) in Safari Holdings, the parent firm of ARP Africa Travel, Pollman’s Tours & Safaris, and Tanzanian tour company Ranger Safaris.
In a disclosure published on Wednesday, IFC – a member of the World Bank Group – said it would be making the investment alongside a Mauritian firm known as Alterra Africa Accelerator Fund, which will also manage the co-investment.
The tour companies are expected to use the funding to expand their share of the market in the two countries, where they have operated for more than four decades.
“IFC proposes an equity co-investment in Safari Holdings, which is the holding company that owns 100 per cent of the shares in ARP Africa Travel, Pollman’s Tours & Safaris, and Ranger Safaris. The co-investment will be made through a Mauritius investment vehicle alongside Alterra Africa Accelerator Fund,” said the IFC in the disclosure.
ARP Africa Travel, Pollman’s and Ranger Safaris, while integrated at the group level, operate as independent subsidiaries of Safari Holdings, according to the IFC disclosure.
UK-headquartered ARP Africa Travel handles business-to-business tour package sales to Kenya for Pollman’s and to Tanzania for Ranger Safaris, which then deliver on the packages sold by ARP through services such as guided tours and safaris, ticketing, hotel reservations and related transport services.
In May, the Competition Authority of Kenya (CAK) approved the tie-up between ARP Africa Travel and Pollman’s, where the former acquired 100 per cent of the issued shares of the local firm.
The CAK said the transaction did not raise any competition concerns, given the low concentration of firms in the local tour operator market, which had 322 active players at the time of the approval.
The CAK also noted that Africa Travel did not have any commercial activities in Kenya.
“With regard to the proposed transaction, post-merger, the market share of the merged entity will not change as the target and the acquirer is not in similar business and, therefore, the structure and concentration of the markets for tour operators in Kenya will not be affected,” the regulator said in a statement.
The investment by the IFC comes in a period of rising visitor numbers and revenue for Kenyan tourism.
Ministry of Tourism data show that in 2024, international visitor numbers rose by 15 percent to 2.4 million, resulting in earnings going up by 19.8 per cent to Sh452.2 billion.
Pollman’s Tours & Safaris has operated in Kenya since the 1950s, making it one of the oldest tour firms in the country, while Ranger Safaris has been in Tanzania from 1978.
The two companies run a fleet of more than 280 vehicles that include customised safari vans, coaches, minibuses and saloons for staff and tourist transfers and tours.
