EABL Kisumu brewery ‘to create 110,000 jobs’

Business Daily Kenya:  East African Breweries Limited (EABL) is set to open a new brewery in Kisumu at a cost of Sh15 billion to help incre...

Business Daily Kenya: 

President Uhuru Kenyatta (right) and Diageo Global Chief executive Ivan Menezes (left) look on as Industrialisation Cabinet Secretary Adan Mohamed (sitted right) and Kenya Breweries Limited (KBL) Managing Director Jane Karuku sign agreements for Sh15 billion investment by Diageo Global in Kisumu. Photo/SAMUEL KARIUKI

East African Breweries Limited (EABL) is set to open a new brewery in Kisumu at a cost of Sh15 billion to help increase production capacity of Senator Keg beer.

Plans to construct the plant, which will be launched on July 16, were announced yesterday by Ivan Menezes, chief executive of Diageo – of which EABL is a subsidiary.

The meeting was also attended by Diageo Africa President John O’Keeffe, EABL Group Managing Director Andrew Cowan and Kenya Breweries Ltd Managing Director Jane Karuku, among others.

Kenya Breweries is subsidiary of EABL, others are Uganda Breweries , Serengeti Breweries , United Distillers Vintners, East African Maltings and East African Breweries International.

The plant, which will be operational in the next 18 to 24 months, is the single largest investment in decades in that region and is expected to open a significant socio-economic lifeline for the Nyanza region and Kenya at large.

Once operational, it will create 110,000 direct and indirect jobs to support its expansive value chain. Further, the plant will offer ready market to millet and sorghum farmers across the country.

During the function President Kenyatta said millet and sorghum farmers have collectively been earning about Sh2.2 billion a year from supplying beer-making raw materials. The new plant will increase their earnings further.

“According to projections, this plant will lead to increased utilisation of sorghum from the current 20,000 tonnes to around 40,000 tonnes in the next five years. Increased demand for sorghum will see the number of contracted farmers grow from 30,000 to around 45,000.

As a result, gross additional farmer earnings are expected to reach more than Sh6 billion annually over the next decade,” the President said. KBL has contracted about 30,000 smallholder farmers across the country in areas such as Kisumu, Siaya, Migori, Homa Bay as well as Tharaka Nithi, Kitui and Makueni.

Menezes said that the investment of the new brewery underlines the brewer’s long-standing commitment to Kenya. “This announcement now brings our incremental capital investment to Sh30 billion over the last five years and further deepens our relationship with Kenya which has now spanned 95 years,” he said.

The President also complimented EABL for introducing the low-end Senator Keg, a brand seen as an alternative to illicit brews. He noted that to help and encourage production of the safe and affordable brew, Treasury has introduced an 80 per cent remission for beers made from sorghum, millet and cassava.

“Quality brews such as Senator Keg will remain affordable for wananchi and the makers and sellers of illicit brews will find life ever harder,” he noted.

The post EABL Kisumu brewery ‘to create 110,000 jobs’ appeared first on Mediamax Network Limited.

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