Brookside to exit Tanzanian market

Brookside is set to exit the Tanzanian market after it was announced that...

Employee of Brookside Dairy

The Company, which already owns 40% of the Brookside Dairy, wrote to Tanzania’s Fair Competition Commission (FCC), making its intentions known.

Danone, failed to disclose the certain amount that they would be parting with, but the move will see the company, which is associated with President Uhuru Kenyatta’s family, lose its grip on the neighbouring country.

“The FCC has received notification that Brookside Holdings Limited of Dubai, United Arab Emirates, intends to acquire 100 per cent of the issued share capital in Brookside Dairy Tanzania Limited.

“Brookside Tanzania is in the business of purchasing, distributing and selling dairy products in Tanzania and the FCC is currently investigating the intended acquisition,” CFC said in a statement.

The Ruiru-based Brookside company has been having problems since it gained footing in Tanzania in 2014 after it acquired the Arusha plant of the defunct State-owned Tanzania Dairies.

According to Tanzanian authorities, Brookside was supposed to install an ultra-heat-treated (UHT) milk processing factory after the purchase but failed to adhere to the agreement.

“I would like to see all Tanzania’s milk being processed here. We can’t turn our factory into a mere collection centre for a Kenyan factory,” Tanzania official said back when the deal was signed between the countries.

Speculations have been rife that the difference between Kenya and Tanzania could have been the reason why the deal was brought to an abrupt end.

In 2015, Tanzania president John Pombe said that the two countries were reading from different scripts on the Brookside saga.

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