The Competition Authority of Kenya (CAK) has granted Del Monte Kenya Limited the greenlight to acquire a 100% stake in Mananasi Fibre Limited (MFL), a move poised to boost the country’s waste management and sustainable agriculture sectors. The approval, which aligns with sections 2 and 41 of the Competition Act Cap 504, confirms that the acquisition will not negatively affect market competition.
According to CAK, the transaction is unlikely to disrupt the current landscape for textile-grade pineapple fibre, compost, or biochar production in Kenya. Instead, the integration of the two firms is expected to unlock synergies, scale up operations, and create new employment opportunities across the value chain, especially for both skilled and unskilled workers.
Del Monte, known for its large-scale pineapple farming and processing operations, views the acquisition as a strategic move to enhance its environmental stewardship by adopting sustainable waste disposal solutions. With MFL’s specialization in transforming pineapple plant waste into valuable products such as fibre, compost, and biochar, the merger signals a shift towards a circular economy model in agribusiness.
“The transaction will enable the acquirer to bring on board a pineapple waste disposal solution,” CAK noted in its statement, highlighting the potential environmental and economic benefits of the acquisition.
Biochar, one of MFL’s key products, is gaining traction as a sustainable alternative to traditional fertilizers. Produced through pyrolysis burning organic material in a controlled, low-oxygen environment biochar not only enriches soil but also helps sequester carbon, playing a vital role in climate change mitigation.
MFL joins a growing list of biochar producers in Kenya, including Cookswell Jikos Limited, Biochar Life, Biosorra, and Tera Carbon. With Del Monte’s financial muscle and extensive agricultural operations, the acquisition could significantly increase the production and uptake of biochar and related eco-products in the country.
This acquisition marks a notable step forward for Kenya’s agribusiness sector, blending profitability with sustainability and opening avenues for green innovation in agricultural waste management.
