The value of deals closed in Kenya in the first quarter of the year fell 41.3 percent to $25.83 million (Sh3.34 billion) attributed to uncertainty in the America-Africa investment relationships owing to the return of US President Donald Trump to the White House.
According to a review of continental transactions by South Africa-based DealMakersAfrica magazine, Kenyan deals fell to 12 deals valued at $25.83 million (Sh3.34 billion) in the first three months of the year.
The drop was from 19 deals posted in a similar period last year, valued at $44.05 million (Sh5.69 billion).
“The return of Donald Trump to the US presidency early in the quarter introduced uncertainty and recalibration in US-Africa investment dynamics, which is clearly reflected in the data captured by DealMakers Africa,” said Ms Marylou Greig, a director at DealMakersAfrica.
“Kenya remains the anchor for deal activity (12 deals) in the East African region, with the focus on financial services, healthcare and agritech.”
The mergers and acquisitions in Kenya in the review period included Alterra Capital and Phatisa's purchase of Java House from Actis for an undisclosed amount. The deal was announced on January 23.
CFAO Mobility Kenya’s acquisition of the remaining stake in Tyre Distribution Africa from JV partners Michelin was another major transaction, although the amount was not disclosed.
In the review period, there were five private equity (PE) deals recorded in Kenya compared to 12 deals the year before. The value of the PE deals also dropped to $8.5 million (Sh1.1 billion) from $44.025 million (Sh5.68 billion).
Other activities include a $100 million (Sh12.9 billion) financing from the British International Investment (BII) to KCB Bank Kenya for a tier 2 capital facility and a $10 million (Sh1.29 billion) loan by International Finance Corporation (IFC) to Royal Apparel EPZ to support expansion strategy that includes the construction of a new factory.
In East Africa, trailing Kenya was Uganda with four deals in 2025 valued at $10 million (Sh1.29 billion) from five deals for an undisclosed amount in the year before. Tanzania followed with three deals worth $2.075 million (Sh267.69 million) from two deals last year.
“Tanzania and Uganda saw increased investor interest in infrastructure, manufacturing and logistics. East Africa’s energy transition saw an increase in M&A deals in the solar, wind and hydro sectors,” added Ms Greig.
There were more deals continentally in the prior year (102) compared to the review period (75).
Deal activity in the review period was highest in North and East Africa at 21, led by 14 in Egypt.
“On a regional level, East and North Africa were the most active, accounting for 55 percent of deals captured in the quarter,” Ms Greig said of the continental deal performance.
