The number of Kenyan mergers and acquisitions sealed in the first nine months of 2024 declined 51 percent to 47 deals according to a review of continental transactions by South Africa-based DealMakers Africa magazine.
The report shows that there were 71 deals closed in the country in the same period the year before, including in agriculture and financial technology (fintech).
The value of the deals in the review period was $523.8 million (Sh67.7 billion), beating the value of the prior year's transactions which stood at $407.7 million (Sh52.7 billion).
This shows that the more recent buyouts and mergers were larger in value, with Tanzania's Amsons Group eventually taking a 96.4 percent stake in Kenya's Bamburi Cement for Sh22.7 billion.
Amsons had announced its bid for a 100 percent buyout of Bamburi in July 2024, originally seeking to spend up to Sh23.5 billion in the deal that was priced at Sh65 per share.
The report says that transactions across the continent were lower last year, partly due to higher cost of financing deals.
“Deal flow remains below the level seen in 2023. This is attributed largely to global economic pressures; particularly rising interest rates, which have stymied leveraged buyouts and reduced the availability of debt financing,” Ms Marylou Greig, a director at DealMakers Africa said in the report.
In the review period, there were 25 private equity (PE) deals recorded in Kenya compared to 46 deals the year before. The value of the PE deals also dropped to $129.8 million from $319.6 million.
Private equity deal activities in Kenya were prevalent in technology with four deals, three in agritech, two in agriculture, healthcare, insurtech and energy and one each in automotive, beverages, e-commerce, packaging, services among others.
Amsons' buyout of Bamburi was the largest deal in Kenya. Other transactions included Sri Lanka-based Browns Investments Plc purchase of tea estates in Kenya, Tanzania and Rwanda from Lipton Teas & Infusions.
In East Africa, trailing Kenya was Uganda with 12 deals in 2024 valued at $225 million from 10 deals worth $123.1 million in the year before.
Tanzania followed with nine deals worth $59.2 million from 10 deals worth $264.9 million.
There were more deals continentally in the prior year (383) compared to the review period (282).
Deal activity in the review period was highest in West Africa at 83 led by 48 in Nigeria. A year earlier, more deals were closed in East Africa (110 deals) led by 71 in Kenya.
“The value of deal activity for 2024 to end-September, was down 10 percent year-on-year at $7.25 billion off 282 deals, compared with 2023’s figure of $8 billion (388 deals),” Ms Greig said of the continental deal performance.
