Simbisa Takes Full Ownership of Kenya Delivery Firm Kutuma

Simbisa Brands has taken full ownership of Kutuma Kenya, the delivery company supporting its fast-food operations, after buying out the minority shareholder.

The group recorded a net cash outflow of KES 85.8 million ($663,882) for the remaining 25% stake, according to Simbisa’s annual accounts. Simbisa owned 100% of Kutuma at the end of June, compared with 75% the previous year.

Delivery becomes a larger part of Kenyan business

Kutuma operates Dial a Delivery, which handles orders for Simbisa’s restaurant chains, including Pizza Inn, Chicken Inn, Galito’s, Creamy Inn and Bakers’ Inn. It also runs Yum, a platform listing restaurants and grocery stores in Nairobi, and Swyft, a delivery service for businesses.

Simbisa completed 3.23 million deliveries in Kenya during the year to June, up from 2.03 million in the previous year. The company said delivery orders increased by 59% over the period.

The net value of goods sold through delivery accounted for 27.4% of Kenyan turnover, compared with 21.7% in the prior year. In Zimbabwe, the equivalent measure was 5.1%.

Simbisa said delivery orders in Kenya grew more than four times as quickly as overall customer volumes. The group also reported that Kenyan revenue rose by 11%, while operating profit increased by 16%. Average spending declined by 3% in dollar terms.

“Delivery channels continued to gain momentum, with delivery orders increasing by 59% compared to the prior year, further extending our customer reach and providing convenience,” Simbisa said in its annual report.

Expansion of digital delivery operations

Kutuma’s services compete with platforms including Glovo, Uber Eats and Bolt Food. The Kenyan market also lost Jumia Food in December 2023, according to the supplied report.

A 2024 study by the Competition Authority of Kenya found that about 85% of surveyed retailers had no exclusive agreement with delivery platforms. The study’s findings were reported without details on the number of retailers surveyed.

Kutuma has said it wants to develop a marketplace built around Dial a Delivery, Yum and Swyft. The company has not specified that the marketplace has reached a particular launch or operating milestone.

Simbisa said it would continue investing in delivery and digital ordering where it expects sufficient returns. The company had 257 outlets in Kenya at the end of the reported period, compared with 352 in Zimbabwe.

The acquisition gives Simbisa direct control of the delivery operations at a time when home delivery is contributing a growing share of its Kenyan business.