July 17, 2018 / 2:21 PM / a year ago

Kenya's EABL to start production at new $150 mln brewery

NAIROBI, July 17 (Reuters) - East African Breweries said on Tuesday its new 15 billion shilling ($149.25 million) brewery in western Kenya is ready to start production after a successful test run.

The brewer, which is controlled by Britain’s Diageo, will kick off activity at the site with a two-year production run of its Senator Keg beer, a low-priced lager made from locally grown sorghum.

It will then move on to mainstream brands like Tusker.

Senator Keg has been one of the fastest growing brands for EABL in recent years due to huge demand from price-sensitive consumers, some of whom are switching from illegal drinks into more formal ones.

EABL’s main plant is located in the capital Nairobi. It announced the investment in the new brewery in the western city of Kisumu last year, saying it wanted to meet growing demand in that region.

The company, which also operates in neighbouring Tanzania and Uganda, has also started to produce some spirits like Captain Morgan rum in Kenya in response to growing demand in that segment. ($1 = 100.5000 Kenyan shillings) (Reporting by Duncan Miriri; Editing by Jan Harvey)

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