Kenyan businessman Peter Muthoka has sold his airport cargo handling company at Jomo Kenyatta International Airport after the transaction received approval from the Competition Authority of Kenya. The buyer is Celebi Cargo GmbH, marking the group's entry into the East African market.
The authority said it cleared Celebi Cargo GmbH's acquisition of 100 per cent of the issued share capital of Transglobal Cargo Centre Ltd, owned by Peter Muthoka, without conditions. According to the regulator, the transaction is not expected to reduce competition or raise public interest concerns.
Transglobal operates at Nairobi's main airport under the business name Africa Flight Services, commonly known as AFS. The company provides ground and cargo handling services, including warehousing, and plays a role in the export flow of fresh flowers, vegetables, and other time-sensitive produce from Kenya.
Celebi Cargo GmbH operates at Frankfurt Airport and handles around 200,000 tons of cargo per year, according to the regulator. The authority noted that Celebi had no existing operations in Kenya prior to the acquisition, which supported its approval decision.
The parent company, Celebi Aviation, disclosed a purchase price of US$40.1 million, equivalent to about 5.2 billion Kenyan shillings. In a statement, the company said the acquisition provides a base for expansion in Kenya's aviation services market and the wider region.
Regulatory filings show that AFS is the largest export cargo handler at JKIA, accounting for 33 per cent of export volumes. Kenya Airways Cargo handles 22 per cent, while the remainder is shared by other operators, including Signon Group and Swissport. On the import side, Kenya Airways Cargo leads with 32 per cent, followed by AFS with 20 per cent.
Because Celebi had no prior market presence in Kenya, the authority said market shares are not expected to change immediately following the takeover. The deal met Kenya's mandatory notification threshold, as the parties' turnover or assets exceeded 1 billion Kenyan shillings.
Celebi said Kenya's aviation market is forecast to grow at about 5 per cent per year over the next five years, compared with a global average of 3.3 per cent cited from the International Air Transport Association. The company estimates that JKIA accounts for roughly one-fifth of Kenya's annual air cargo volumes of around 400,000 tons.
According to the competition authority, the transaction is not expected to result in job losses or directly affect small businesses operating at the airport. Industry participants will be watching how operations at JKIA evolve following the ownership change, particularly in relation to cargo throughput and handling efficiency for perishable exports.
Source: Billionaires Africa
