Kenya’s renowned coffee and casual dining chain, Java House, is set for a new chapter as Actis, its current owner, exits the company, selling it to Africa-focused private equity firms Alterra Capital and Phatisa Group. This marks Java House’s fourth ownership change in 12 years, reflecting the continued investment interest in East Africa’s food and beverage industry.
According to a notice from the COMESA Competition Commission, Mauritius-based Alterra Capital will hold a majority stake in the company, though financial details of the deal remain undisclosed.
Java House’s Journey Through Multiple Owners
Java House’s success story began in 1999 when American entrepreneurs Kevin Ashley and John Wagner launched the brand in Nairobi. Over the years, it has grown to operate 73 stores across Kenya, Uganda, and Rwanda and expanded into a diversified food group, managing brands like:
- Foodscape – A food manufacturing company
- Kukito – A fast-casual chicken restaurant
- Planetyogurt – A frozen yogurt chain
- 360 Degrees Artisan Pizza – A gourmet pizza brand
The chain’s history of ownership changes reflects its growing value:
- 2012: Emerging Capital Partners (ECP) acquired a 90% stake from the founders.
- 2018: The now-defunct Abraaj Group purchased Java House for over $100 million.
- 2019: Actis took over Java House after Abraaj’s liquidation.
- 2024: Actis exits, selling to Alterra Capital and Phatisa Group.
Actis had been looking to exit Java House since September 2023, even considering an initial public offering (IPO) before finalizing the sale to the two African investors.
New African Investors, New Strategy
Unlike previous owners, Alterra Capital and Phatisa Group bring an African-focused growth strategy to Java House.
- Alterra Capital, founded in 2020, primarily invests in financial services and telecommunications but is now expanding into food and beverage with Java House as its first coffee brand.
- Phatisa Group has a strong presence in Africa’s food value chain, with investments in agribusiness and FMCG brands such as Goldenlay (Zambia), Lona Group (South Africa), and Continental Beverage Company.
The acquisition is expected to drive regional expansion, operational efficiency, and market penetration across East Africa and beyond.
What’s Next for Java House?
Java House operates in a competitive yet growing casual dining market. However, Alterra and Phatisa have assured that the acquisition will not reduce competition, as their existing investments do not overlap with Java House’s operations.
With Kenya being a key coffee-producing country, the new owners could leverage local sourcing, digital transformation, and supply chain efficiencies to strengthen Java House’s market position.
While specific expansion plans have yet to be announced, the acquisition signals a new era for Java House, one that could see it evolve from a regional success story to a global African brand.
With Actis exiting the scene, the big question remains: Can Java House’s new African owners take it to even greater heights?
