Java House, the well-known Kenyan coffee and casual dining chain, is entering a new phase as its current owner, Actis, sells the company to Africa-focused private equity firms Alterra Capital and Phatisa Group, marking its fourth ownership change in 12 years.
This reflects the ongoing investment interest in East Africa’s food and beverage sector.
A notice from the COMESA Competition Commission states that Mauritius-based Alterra Capital will hold a majority stake in the company, though the financial details of the deal remain confidential.
Java House’s story began in 1999 when American entrepreneurs Kevin Ashley and John Wagner launched the brand in Nairobi.
It has since grown to 73 stores across Kenya, Uganda, and Rwanda, expanding into a diversified food group managing brands such as Foodscape, a food manufacturing company; Kukito, a fast-casual chicken restaurant; Planetyogurt, a frozen yogurt chain; and 360 Degrees Artisan Pizza, a gourmet pizza brand.
In 2012, Emerging Capital Partners (ECP) acquired a 90% stake from the founders.
In 2018, the now-defunct Abraaj Group purchased Java House for over $100 million.
Actis took over Java House in 2019 after Abraaj’s liquidation.
Now, in 2024, Actis exits, selling to Alterra Capital and Phatisa Group.
Actis had been looking to exit Java House since September 2023, even considering an initial public offering (IPO) before finalizing the sale.
Alterra Capital and Phatisa Group bring an Africa-focused growth strategy to Java House, unlike previous owners.
Alterra Capital, founded in 2020, primarily invests in financial services and telecommunications but is now expanding into food and beverage, with Java House as its first coffee brand.
Phatisa Group has a strong presence in Africa’s food value chain, with investments in agribusiness and FMCG brands such as Goldenlay (Zambia), Lona Group (South Africa), and Continental Beverage Company.
The acquisition is expected to drive regional expansion, operational efficiency, and market penetration across East Africa and beyond.
Alterra and Phatisa have assured that the acquisition will not reduce competition, as their existing investments do not overlap with Java House’s operations.
With Kenya being a key coffee-producing country, the new owners could leverage local sourcing, digital transformation, and supply chain efficiencies to strengthen Java House’s market position.
While specific expansion plans are yet to be announced, the acquisition signals a new era for Java House, potentially evolving it from a regional success story to a global African brand.