Kenya Will Locally Produce Pepsi, 7UP, and Mirinda from 2027: Here’s the Blueprint

Kenya is set to host a major new soft drinks manufacturing facility after Varun Beverages, the world’s largest bottler of PepsiCo products outside the United States, confirmed plans to build a production plant that is expected to be operational by the end of 2027.

The company said construction of the factory will commence in the first quarter of 2026, with completion targeted for the fourth quarter of 2027.

Once operational, the plant is projected to have an annual production capacity of between 12 million and 15 million beverage cases, significantly boosting the local supply of world-famous soft drink brands like Pepsi, 7UP, Mirinda, and Mountain Dew.

The new facility will be developed under a wholly owned local subsidiary, VBL Industries (Kenya) Limited, which was incorporated late last year to oversee manufacturing, distribution and sales in the Kenyan market.

Part of Broader Internationalisation Strategy

Varun Beverages said the investment is part of its broader strategy to expand its footprint across Africa, where demand for branded beverages continues to rise alongside population growth, urbanisation and expanding retail networks.

The company already operates in several African markets, including Zimbabwe, Zambia, South Africa, Tanzania and Ghana.

Local production is expected to reduce Kenya’s reliance on imported beverages, lower logistics and freight costs, and improve product availability across the country.

Industry analysts say this could translate into more competitive pricing for consumers and faster delivery to retailers, particularly in upcountry markets where supply chains are often stretched.

Localisation Through Mergers and Acquisitions

Besides these global brands, Varun Beverages has been expanding its African operations through acquisitions and partnerships.

The company recently agreed to acquire South Africa-based Twizza, a leading local Soft Drink Manufacturer, further strengthening its production base in southern Africa.

It has also taken full ownership of beverage operations in Tanzania and Ghana, consolidating control over its regional supply chains.

Manufacturing of Beers as Well

In a further sign of diversification, Varun Beverages’ African subsidiaries have signed an exclusive distribution agreement with Carlsberg Breweries to test-market selected beer brands.

While the Kenya plant is expected to focus on non-alcoholic beverages, the move highlights the group’s longer-term ambition to broaden its product portfolio in emerging markets.

President Ruto’s Hand

The landmark investment follows high-level engagement between the Kenyan government and PepsiCo executives.

In 2023, President William Ruto met company officials in the United States as part of a broader push to attract foreign direct investment into manufacturing and value addition.

Food and beverage processing has been identified by the government as a priority sector for industrial growth due to its strong linkages with agriculture, logistics and retail.

Job Creation and Employment in Kenya

The establishment of the Kenyan factory is also expected to have a positive employment impact.

Jobs are likely to be created during the construction phase, followed by permanent positions in manufacturing, distribution, sales and logistics once operations begin.

Although the company has not disclosed employment figures, similar facilities in the region have generated thousands of direct and indirect jobs along the value chain.

The project aligns with Kenya’s industrialisation agenda, which seeks to attract multinational manufacturers, expand local production capacity and strengthen export potential within the East African region.

If completed on schedule, the Varun Beverages plant will mark one of the most significant new investments in Kenya’s beverage sector in recent years, reinforcing the country’s appeal to global manufacturers looking to tap into East Africa’s growing consumer market.

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