A private equity firm backed by Aliko Dangote is set to enter Kenya’s food and beverage market with the acquisition of Java House, a leading Kenyan coffee chain.
Africa’s richest man, Aliko Dangote, is among the key investors supporting Alterra Capital, an Africa-focused private equity fund. Alterra, alongside Phatisa Group—another Africa-focused private equity firm—is set to acquire the restaurant chain from UK-based investment firm Actis for an undisclosed amount.
According to a notice from the Malawi-based COMESA Competition Commission, Mauritius-based Alterra will hold a majority stake in the chain.
Alterra and Phatisa have stated that their acquisition will not lead to reduced competition as there are no overlaps between their existing operations, according to Verdict Food Service,
The acquisition marks the fourth ownership change for Java House since 2012.
Actis, which became part of US investment firm General Atlantic in October 2024, has been exploring options to divest from Java House since September 2023, including a potential initial public offering, according to media reports.
Founded in Nairobi in 1999 by American entrepreneurs Kevin Ashley and John Wagner, Java House has grown to operate 73 outlets across Kenya, Uganda, and Rwanda. It is part of the Java House Group, which also owns food manufacturer Foodscape and fast-casual brands like Kukito, Planet Yogurt, and 360 Degrees Artisan Pizza.
The chain’s investment history includes a 90% stake acquisition by Emerging Capital Partners in 2012 from its founders. Dubai-based private equity firm Abraaj Group later took over in a deal exceeding $100 million before Actis acquired Java House in 2019 following Abraaj’s liquidation.
