In a move that signals a direct challenge to the global beverage hegemony, Mohammed Dewji, the chairman of MeTL Group, is leveraging a $50 million investment to disrupt the East African soda market. By establishing a massive soft drinks manufacturing plant in Mombasa, East Africa’s richest man takes on Coca-Cola and Pepsi with $50 million soft drinks manufacturing plant in Kenya, betting that aggressive pricing and local production will win over the region’s price-sensitive consumers.
The planned facility will focus on producing the conglomerate’s flagship brands, including Mo Cola, Mo Xtra, and Mo Malto. The strategy is not merely about increasing volume, but about fundamentally altering the cost of entry for the average consumer. By manufacturing locally in Kenya’s coastal hub, Dewji aims to slash retail prices to a fraction of what global giants currently charge.
According to reports on the pricing strategy, MeTL intends to retail 300-millilitre bottles of Mo Cola for approximately 15 Kenyan shillings (roughly $0.12), a stark contrast to the 40 shillings typically charged for competing products. For a population grappling with inflation and rising living costs, a price cut of more than 60% is more than a discount—it is a market-shifting proposition.
The strategy of price disruption
For those of us who have tracked emerging markets, this is a classic “bottom of the pyramid” play. Dewji is not trying to out-market Coca-Cola on brand prestige; he is out-competing them on accessibility. By stripping away the overhead associated with international licensing and leaning into a lean, indigenous supply chain, MeTL is positioning itself as the “people’s choice” in the beverage aisle.
The choice of Mombasa as the site for the plant is strategic. The city’s deep-water port provides an essential gateway for raw materials and a streamlined launchpad for distribution into the Kenyan interior and beyond. This infrastructure allows MeTL to minimize logistics costs, which in turn supports the low retail price point.
| Beverage Brand | Estimated Retail Price (300ml) | Market Positioning |
|---|---|---|
| Mo Cola | ~15 KES ($0.12) | Mass-market affordability |
| Global Competitors | ~40 KES ($0.31) | Premium global branding |
The architect of MeTL Group
Mohammed Dewji, often referred to simply as “Mo,” has spent decades building one of Africa’s most diversified industrial empires. With a net worth estimated at approximately $2.1 billion by Forbes, Dewji has transitioned from a Tanzanian lawmaker and sports enthusiast—owning the Simba SC football club—into a titan of manufacturing.
MeTL Group has evolved into East Africa’s largest indigenous conglomerate, with a footprint that spans palm oil, rope, agriculture, and logistics. The beverage arm is the latest frontier in Dewji’s effort to replace imported consumer goods with locally produced alternatives. This philosophy of “industrialization from within” is the driving force behind the expansion into Kenya.
Speaking after the Africa Forward Summit in Nairobi, Dewji confirmed the project’s trajectory. “I’m setting up a plant in Uganda, and I now have land in Mombasa. I’m also looking into establishing a carbonated soft drinks plant,” Dewji said. He added that while the project is in the planning phase, there is a “strong possibility of starting construction within a year.”
A regional race for the youthful consumer
The Mombasa investment is part of a broader regional chessboard. MeTL is not just eyeing Kenya; the group is accelerating its footprint across East and Southern Africa, with distribution networks already active in Rwanda, Zambia, Malawi, Ethiopia, and the Democratic Republic of the Congo.
This regional push coincides with a surge of interest in Mombasa from other African billionaires. Nigerian industrialist Aliko Dangote has previously indicated interest in the city for a proposed East African oil refinery, citing the same logistics advantages that Dewji is now exploiting for the beverage industry. The trend underscores a shift toward intra-African investment and the creation of regional value chains.
However, the global giants are not standing still. The competition for Africa’s rapidly urbanizing, youthful population is intensifying. The Coca-Cola Company has pledged an investment of approximately $1 billion in South Africa by 2030, while Varun Beverages, a major Pepsi bottler, has recently expanded its operations into Zimbabwe and South Africa to shore up its market share.
What this means for the market
- Consumer Impact: Lower prices for carbonated drinks may increase consumption among lower-income households.
- Competitive Pressure: Global brands may be forced to introduce “fighter brands” or lower their price points to prevent market share erosion.
- Economic Development: The $50 million investment is expected to create local manufacturing jobs and stimulate the Mombasa industrial zone.
Note: This report discusses business investments and market competition; it does not constitute financial advice.
The next critical milestone for the project will be the transition from the planning stage to the breaking of ground in Mombasa, expected within the next 12 months. As the facility moves toward completion, the industry will be watching closely to see if the global giants respond with their own price corrections in the Kenyan market.
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