Keroche brewery

[KenyanPlato]

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What market share does this company have?

[Georgesoros]

Enough to survive. Beer making is diversifying to the point top beer makers are losing.

[hk]

5% or below of the beer market. Keroche makes bulk of its profits from sale of cheap liquor in the rural areas. And also bottled water.

[KenyanPlato]

Wow they were aiming 20 percent..thank Hk. Are they still private. Tabitha husband started this company. Tabitha used her charm and education to expand it. Will they ever go public?

[Georgesoros]

Wow they were aiming 20 percent..thank Hk. Are they still private. Tabitha husband started this company. Tabitha used her charm and education to expand it. Will they ever go public?

They are not in the market to win rather survive. But they have a following

[hk]

Wow they were aiming 20 percent..thank Hk. Are they still private. Tabitha husband started this company. Tabitha used her charm and education to expand it. Will they ever go public?

Beer volumes growth in kenya has stagnated . The real money is in spirits. EABL growth engine is UDV which deals in spirits. Keroche is actually smaller than African Spirits owned by Humphrey maina, London distillers owned by Mohan Galot and KWAL now owned by south african distell co.

[KenyanPlato]

Wow they were aiming 20 percent..thank Hk. Are they still private. Tabitha husband started this company. Tabitha used her charm and education to expand it. Will they ever go public?

Beer volumes growth in kenya has stagnated . The real money is in spirits. EABL growth engine is UDV which deals in spirits. Keroche is actually smaller than African Spirits owned by Humphrey maina, London distillers owned by Mohan Galot and KWAL now owned by south african distell co.

Interesting. this company unleashed the packaging of local cheap spirits. In 1990s so many young kikuyu men got hooked to these cheap spirits. I lost my best friend at 23 years from alcohol poisoning. He drank too much on Easter weekend of 1993. He went to eep and never got up. He was to be followed by many more.

[RV Pundit]

There is a lot of foreign beers & spirits on the market. Taxes have made production nonsensical.

[gout]

Apart from EABL monopolising the beer distribution and logistics, Tabitha made a huge political blunder in 2012 by hyping Odinga's interest in Keroche from which it seems she won't recover from. Summit Lager had started eating into the EABL cash cow that is Tusker market share. The sugar free tag had roped in prized stinking rich old DDOs wazees facing high blood pressure and diabetes in Nairobi and Central Kenya. With the political blunder EABL non starter Balozi has now kicked Summit in the balls.

More delocalized manufacturing plants is the the way to go. Though this is impossible unless EABL monopolistic tendencies are reined on. Just like in energy sector with Kenya Power, EABL has led to us importing even spirit by their million cubic litres - basic alcohol which is made through simple applied science - a thing old women have been doing successfully all over Kenya since 1800s.

Alcohol just like leather and textiles are some low hanging fruits which can kickstart our manufacturing sector if we can say to hell with Diageo and few old money interests. The times when EABL was a prized taxpayer are long gone and the industry needs some demolition for innovation.

[GeeMail]

This dangerous industry should be left to stagger into economic suicide.

[RV Pundit]

Absolutely. But will all over-regulation and over-taxation it going to be tough to invest in it. We will see more imports coming in.

Apart from EABL monopolising the beer distribution and logistics, Tabitha made a huge political blunder in 2012 by hyping Odinga's interest in Keroche from which it seems she won't recover from. Summit Lager had started eating into the EABL cash cow that is Tusker market share. The sugar free tag had roped in prized stinking rich old DDOs wazees facing high blood pressure and diabetes in Nairobi and Central Kenya. With the political blunder EABL non starter Balozi has now kicked Summit in the balls.

More delocalized manufacturing plants is the the way to go. Though this is impossible unless EABL monopolistic tendencies are reined on. Just like in energy sector with Kenya Power, EABL has led to us importing even spirit by their million cubic litres - basic alcohol which is made through simple applied science - a thing old women have been doing successfully all over Kenya since 1800s.

Alcohol just like leather and textiles are some low hanging fruits which can kickstart our manufacturing sector if we can say to hell with Diageo and few old money interests. The times when EABL was a prized taxpayer are long gone and the industry needs some demolition for innovation.

[gout]

The regulatory capture is by EABL and Diageo. Mututho had the policy right - even going to a chang'aa brewery per county instead of getting Konyagi from TZ brewers. https://www.businessdailyafrica.com/corporate/Nacada-now-plans-to-set-up-changaa-plants-in-counties/539550-1845290-7fs3u0/index.html EABL couldn't have none of this.

Just like Monsanto has started losing despite its regulatory capture so will it happen in these industries and sectors. EABL/Diageo imports most of the stuff on our counters which are easily counterfeited at Kariobangi Light Industries. 

Absolutely. But will all over-regulation and over-taxation it going to be tough to invest in it. We will see more imports coming in.

Apart from EABL monopolising the beer distribution and logistics, Tabitha made a huge political blunder in 2012 by hyping Odinga's interest in Keroche from which it seems she won't recover from. Summit Lager had started eating into the EABL cash cow that is Tusker market share. The sugar free tag had roped in prized stinking rich old DDOs wazees facing high blood pressure and diabetes in Nairobi and Central Kenya. With the political blunder EABL non starter Balozi has now kicked Summit in the balls.

More delocalized manufacturing plants is the the way to go. Though this is impossible unless EABL monopolistic tendencies are reined on. Just like in energy sector with Kenya Power, EABL has led to us importing even spirit by their million cubic litres - basic alcohol which is made through simple applied science - a thing old women have been doing successfully all over Kenya since 1800s.

Alcohol just like leather and textiles are some low hanging fruits which can kickstart our manufacturing sector if we can say to hell with Diageo and few old money interests. The times when EABL was a prized taxpayer are long gone and the industry needs some demolition for innovation.

[hk]

The regulatory capture is by EABL and Diageo. Mututho had the policy right - even going to a chang'aa brewery per county instead of getting Konyagi from TZ brewers. https://www.businessdailyafrica.com/corporate/Nacada-now-plans-to-set-up-changaa-plants-in-counties/539550-1845290-7fs3u0/index.html EABL couldn't have none of this.

Just like Monsanto has started losing despite its regulatory capture so will it happen in these industries and sectors. EABL/Diageo imports most of the stuff on our counters which are easily counterfeited at Kariobangi Light Industries. 

EABL monopoly is on beer not on overall alcohol sector. Imported quality beer is chipping away at that monopoly, namely heinken,turborg bavaria etc. For the millennials their first drink is most likely a spirit not a tusker lager unlike earlier generations.
Mututho law actually exacerbated the situation by coming up with regulations that forces local manufacturers to package alcohol using glass bottles. This raised the cost of alcohol which in turn forced manufacturers to increase potency. The regulators are biased against local distillers and brewers. Its far much easier to get cheap Indian liquor than to setup a local distillery. Its been hell trying to get a coffee liqueur license.   

[RV Pundit]

Precisely.Manufacturing is going to dogs thanks to such policies...now 8% of GDP..and probably reducing. Taxes & electricity are killing industries. Cement industry seem to be also on it's knees.

EABL monopoly is on beer not on overall alcohol sector. Imported quality beer is chipping away at that monopoly, namely heinken,turborg bavaria etc. For the millennials their first drink is most likely a spirit not a tusker lager unlike earlier generations.
Mututho law actually exacerbated the situation by coming up with regulations that forces local manufacturers to package alcohol using glass bottles. This raised the cost of alcohol which in turn forced manufacturers to increase potency. The regulators are biased against local distillers and brewers. Its far much easier to get cheap Indian liquor than to setup a local distillery. Its been hell trying to get a coffee liqueur license.   

[hk]

Precisely.Manufacturing is going to dogs thanks to such policies...now 8% of GDP..and probably reducing. Taxes & electricity are killing industries. Cement industry seem to be also on it's knees.

That's why uhuru big 4 manufacturing is a cruel joke. Without addressing the fundamentals i.e policy and energy cost manufacturing will keep on shrinking as a percentage of GDP. Manufacturers don't need new industrial estates(buildings) ,they need change in policy.

[MOON Ki]

That's why uhuru big 4 manufacturing is a cruel joke. Without addressing the fundamentals i.e policy and energy cost manufacturing will keep on shrinking as a percentage of GDP. Manufacturers don't need new industrial estates(buildings) ,they need change in policy.

Everything about the "Big 4" is a joke, especially if one considers Jubilee's "Big Ones" from 2013.   GoK appears to be run like some university research project, where some egghead says "this is a really great idea, and with just this amount of money we'll do Great Things A, B, and C"; n years later, nothing is there, except for "the initial results look promising, and if we gen even more money we'll do X, Y, and Z, which are even greater than the A, B, and C we initially had in mind"; dot, dot, dot.   Manufacturing to reach 20% of GDP by 2020?    http://www.president.go.ke/

OK, the guy smokes some stuff, but still!

Manufacturers don't need new industrial estates(buildings) ,they need change in policy.

Exactly.   And concrete support to go with the change in policy.

[RV Pundit]

Not all the Big 4s are hollow.Universal Health care will happen - this basically getting everyone on NHIF and we are half way there. Housing will happen - we just have to take advantage of Chinese construction machine. Now Manufacturing and Food Security are two tough ones - but I won't Uhuru for dreaming big.

That's why uhuru big 4 manufacturing is a cruel joke. Without addressing the fundamentals i.e policy and energy cost manufacturing will keep on shrinking as a percentage of GDP. Manufacturers don't need new industrial estates(buildings) ,they need change in policy.

Everything about the "Big 4" is a joke, especially if one considers Jubilee's "Big Ones" from 2013.   GoK appears to be run like some university research project, where some egghead says "this is a really great idea, and with just this amount of money we'll do Great Things A, B, and C"; n years later, nothing is there, except for "the initial results look promising, and if we gen even more money we'll do X, Y, and Z, which are even greater than the A, B, and C we initially had in mind"; dot, dot, dot.   Manufacturing to reach 20% of GDP by 2020?    http://www.president.go.ke/

OK, the guy smokes some stuff, but still!

Manufacturers don't need new industrial estates(buildings) ,they need change in policy.

Exactly.   And concrete support to go with the change in policy.

[RV Pundit]

I think we need to make tough choices...we have largely sorted out transport issues...but what remain is high cost of energy (we need to subsidize big customers), high cost of labour  and then regional competition where countries like Ethiopia or TZ or Uganda are dishing out crazy incentives to manufactures - free land, 10yr tax holiday and name it.

The way I see we need to get SEZ - special economic zones along SGR -  where we can create mini-ethiopias- subsidize power to 6 usd cent per unit, suspend all labour laws, allocate free land to manufactures and give them 10 yr tax incentive.

That's why uhuru big 4 manufacturing is a cruel joke. Without addressing the fundamentals i.e policy and energy cost manufacturing will keep on shrinking as a percentage of GDP. Manufacturers don't need new industrial estates(buildings) ,they need change in policy.

[hk]

I think we need to make tough choices...we have largely sorted out transport issues...but what remain is high cost of energy (we need to subsidize big customers), high cost of labour  and then regional competition where countries like Ethiopia or TZ or Uganda are dishing out crazy incentives to manufactures - free land, 10yr tax holiday and name it.

The way I see we need to get SEZ - special economic zones along SGR -  where we can create mini-ethiopias- subsidize power to 6 usd cent per unit, suspend all labour laws, allocate free land to manufactures and give them 10 yr tax incentive.

That would be the wrong approach . Why subsidize big customers at the expense of small customers? Kenya can lower cost of energy for everyone. The key is get the small cottage industries to grow to be big companies. To that extent what's needed is to help micro and small manufacturers to increase productivity by zero rating capital goods. Reducing regulations to access markets.  Kenya industrial estate  centres can be turned into manufacturing hub with necessary equipment, industrial kitchens etc that small manufacturers can access to manufacture goods. KPLC is already offering cheaper rate at night for the big boys. However the small guys are screwed, you have to wonder why government is against the small entrepreneurs. Small companies grow to big companies eventually. FDI shouldn't get special incentives that the small local investors wouldn't get. 

[RV Pundit]

That organic kind of growth will take quite sometime to get us where we want. We need to attract Chinese and other mega-industries & factories - and hope they can spread happiness (jobs, sub-contracts, etc) around. Gov should aim to attract say 10 or 20 big industries..willing to invest 500M-1B dollars -- and we have to be ready to make big concessions.

hat would be the wrong approach . Why subsidize big customers at the expense of small customers? Kenya can lower cost of energy for everyone. The key is get the small cottage industries to grow to be big companies. To that extent what's needed is to help micro and small manufacturers to increase productivity by zero rating capital goods. Reducing regulations to access markets.  Kenya industrial estate  centres can be turned into manufacturing hub with necessary equipment, industrial kitchens etc that small manufacturers can access to manufacture goods. KPLC is already offering cheaper rate at night for the big boys. However the small guys are screwed, you have to wonder why government is against the small entrepreneurs. Small companies grow to big companies eventually. FDI shouldn't get special incentives that the small local investors wouldn't get.