Simbisa Pays $664,000 for Full Control of Kenya Delivery Arm Kutuma

Simbisa Brands paid $663,882 (KES 85.8 million) for the 25% of Kutuma Kenya it did not already own, taking full control of the delivery company behind its Kenyan fast-food operations.

The Zimbabwean group, which owns Pizza Inn, Chicken Inn, Galito's, Creamy Inn and Bakers' Inn, disclosed the deal in its annual accounts for the year to June. Its stake in Kutuma rose from 75% to 100% by the end of June. The buyout matters because delivery now carries real weight in the group's Kenyan business: home delivery accounted for more than a quarter of turnover in the country.

Why did Simbisa buy the last quarter?

Full ownership gives Simbisa a free hand with a business that already works for outsiders. Kutuma operates Dial a Delivery, which handles orders for Simbisa's own chains. It also runs Yum, a platform listing restaurants and grocery stores in Nairobi, and Swyft, a delivery service for businesses. Kutuma wants to build a marketplace around those three operations.

That ambition puts a fast-food operator in direct competition with Glovo, Uber Eats and Bolt Food in Kenya. But Simbisa's restaurants hand Kutuma something most rivals had to buy their way into: a guaranteed base of orders. If Kutuma picks up more work from nearby restaurants and shops, it can keep riders busier and spread delivery costs across a larger order pool.

How big is delivery for Simbisa in Kenya?

The numbers explain the purchase. Simbisa completed 3.23 million deliveries in Kenya in the year to June, up from 2.03 million the year before. The net value of goods sold through delivery rose to 27.4% of Kenyan turnover, from 21.7%. In Zimbabwe, where the group runs 352 outlets against Kenya's 257, the equivalent share was just 5.1%. Kenya is Simbisa's delivery market.

"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.

Delivery orders grew more than four times as fast as overall customer volumes in Kenya. The gap tells the story of where the group's growth is coming from.

Can Kutuma take share from Glovo and Bolt?

Kutuma could offer independent restaurants and grocers another route to customers in a market that lost Jumia Food in December 2023. A 2024 Competition Authority of Kenya study found that about 85% of retailers surveyed had no exclusive agreement with delivery platforms. Most merchants remain free to list on several apps at once, which lowers the barrier for a new entrant with an existing rider network.

The wider Kenyan backdrop was tougher. Simbisa said it leaned on pricing and promotions as competition intensified and household budgets came under pressure. Average spending fell 3% in dollar terms. Even so, rising customer volumes lifted Kenyan revenue by 11%, and operating profit rose 16%.

Simbisa said it will keep investing in delivery and digital ordering where it expects sufficient returns. The group's own delivery volumes prove its restaurants can generate demand. The next test for Kutuma is whether orders from other merchants add enough business to make the bigger marketplace pay.