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KFC plans to open 4 new stores in East Africa by end-year

Thursday September 03 2015

American fast food chain KFC is set to increase its footprint in East Africa to 21 stores by the end of the year.

Its franchise holder, Kuku Foods East Africa, currently operates eight stores in Kenya, five in Uganda and four in Tanzania.

It plans to open an additional two branches in Kenya and one in Uganda and Tanzania each, growing the number to 21 from the current 17.

“Our members of staff, who now total over 300 people in Kenya, will double by the end of 2016,” said Kuku Foods East Africa managing director Derrick Van Houten on Wednesday during the opening of KFC’s Mama Ngina Street store in Nairobi.

The Kenyan arm of the chain is also looking to set up stores outside Nairobi from the end of next year. According to Kuku Foods Kenya general manager Justin Melvin, KFC has set eyes on Nakuru, Kisumu and Eldoret, among other towns.

“(This) exhibits the increased appetite by our shareholders in investing in Nairobi and in the very near future the rest of the country,” said Mr Van Houten.

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Growth of the fast food franchises has been largely limited to Nairobi, with a few venturing out to other towns. Other franchise holders have attributed the centralised growth to the high rents charged outside the city.

“Many landlords ask for Nairobi-level rents, but our research shows that restaurant sales are typically much lower” said Liberty Holdings director CJ Bak, the local franchise holder for Subway, another US food chain with a presence in Nairobi.

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