Olufemi Adeyemi
A private equity firm supported by Aliko Dangote is gearing up to dive into Kenya’s food and beverage scene by acquiring Java House, a popular coffee chain in the country.
Aliko Dangote, known as Africa’s wealthiest individual, is one of the main investors backing Alterra Capital, a private equity fund focused on Africa. Alterra, along with Phatisa Group—another private equity player in Africa—is set to take over the restaurant chain from the UK-based investment firm Actis for an undisclosed sum.
As per a notice from the COMESA Competition Commission based in Malawi, Mauritius-based Alterra will own a majority share in the chain.
Both Alterra and Phatisa have assured that this acquisition won’t stifle competition since their current operations don’t overlap, according to Verdict Food Service.
This marks the fourth time Java House has changed ownership since 2012.
Actis, which merged with US investment firm General Atlantic in October 2024, has been looking into options to sell its stake in Java House since September 2023, including the possibility of an initial public offering, as reported by the media.
Java House was founded in Nairobi in 1999 by American entrepreneurs Kevin Ashley and John Wagner and has expanded to 73 locations across Kenya, Uganda, and Rwanda. It’s part of the Java House Group, which also includes food manufacturer Foodscape and fast-casual brands like Kukito, Planet Yogurt, and 360 Degrees Artisan Pizza.
The chain’s investment journey includes a 90% stake purchase by Emerging Capital Partners in 2012 from its founders. Later, Dubai-based private equity firm Abraaj Group took over in a deal worth over $100 million before Actis acquired Java House in 2019 after Abraaj’s liquidation.