KFC franchisee Kuku Foods partners with Vivo Energy

Vivo Energy, which operates Shell service stations across Africa, and KFC franchisee Kuku Foods East Africa Holdings have formed a 50:50 joint venture “to accelerate the roll out of KFC restaurants in Kenya, Uganda, and Rwanda.”

The first KFC in East Africa opened during 2011, and there are currently 22 in Kenya and eight in Uganda (located in shopping centres, city centres, and service stations), with the brand due to debut in Rwanda before the end of this year. While this joint venture will manage and operate KFC outlets in these three markets (the five KFCs operated by Kuku Foods Tanzania are excluded), Kuku Foods who will remain the sole holder of the KFC franchise.

As previously discussed, forecourt retail is a good fit with African markets, and this deal is line with Vivo Energy’s ongoing expansion of its “non-fuel retail offer.” According to Vivo Energy, this deal “will enable a significant increase in the number of KFC restaurants in the coming years. It is envisaged that many of the new restaurants will be opened at Vivo Energy’s network of service stations across Kenya, Uganda and Rwanda.” Christian Chammas, CEO of Vivo Energy, added: “We are delighted to be partnering with Kuku Foods to replicate the KFC joint venture model we pioneered in Botswana and Côte d’Ivoire.”

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