Pepsi bottler, Varun Beverages, to anchor East African expansion with new Kenyan plant

Varun Beverages Limited (VBL), a PepsiCo bottler, has announced its entry into the Kenyan market with a state-of-the-art manufacturing facility.

Following the official incorporation of its local subsidiary, VBL Industries (Kenya) Limited, the company has outlined an ambitious roadmap for the project:

• Construction Phase: Groundbreaking is scheduled for Q1 2026.
• Operational Goal: The plant is expected to be fully commissioned by Q4 2027.
• Production Capacity: Once operational, the facility is projected to produce between 12 and 15 million cases of beverages annually.

The investment follows a between President William Ruto and PepsiCo executives in late 2023, during which the Kenyan government pledged to create a conducive environment for foreign direct investment. By establishing a local manufacturing base, Varun Beverages aims to:

1. Reduce Logistics Costs: Transitioning from an import-dependent model to local production will significantly lower the cost of goods sold in the East African Community (EAC).
2. Brand Portfolio Expansion: The plant will bottle a wide array of global brands, including Pepsi, 7UP, Mirinda, Mountain Dew, and Aquafina water.
3. Job Creation: The project is expected to create hundreds of direct jobs and thousands of indirect opportunities within the local supply chain, from raw material sourcing to retail distribution.

The Kenyan expansion is part of a broader African Growth Engine for VBL. The company recently completed a $50 million facility in the Democratic Republic of the Congo (DRC) and has been active in South Africa through the acquisition of The Beverage Company (BevCo) and Twizza.

“Africa provides the next leg of scalable growth for VBL,” the company noted in its recent financial disclosures. With 2024–2025 seeing high double-digit volume growth in its international markets, the Kenyan facility is viewed as a critical piece in capturing the rising demand of the region’s youthful population.

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