Arabfields, Mira Sabah, Special Economic Correspondent, Nairobi, Kenya — Tanzanian businessman Mohammed Dewji is preparing a major expansion into Kenya’s beverage sector with a planned $50 million investment aimed at challenging the long-standing dominance of The Coca-Cola Company in East Africa’s largest economy.

The project, expected to be developed in the coastal city of Mombasa, will include a large soft drinks manufacturing facility operated by MeTL Group, one of East Africa’s biggest industrial conglomerates. Construction is expected to begin within the next year as the company seeks to expand beyond its strong base in Tanzania.

The new plant will produce popular MeTL beverage brands such as Mo Cola, Mo Xtra and Mo Malto, products that have already gained significant market share in Tanzania thanks to their lower retail prices. According to industry estimates released in 2026, MeTL intends to position some of its drinks at less than half the average price of competing international brands sold in Kenya.

For consumers in low and middle-income neighborhoods, the pricing strategy could become a major advantage at a time when inflation continues to affect household spending across East Africa. Beverage retailers in Nairobi say customers are increasingly shifting toward cheaper alternatives as living costs remain elevated.

“People still want soft drinks, especially during weekends and family events, but many are now looking for affordable options,” said Peter Mwangi, a small shop owner in eastern Nairobi. “If these new brands arrive at lower prices, many customers will try them.”

Kenya’s soft drinks industry generated an estimated $1.4 billion in sales during 2025, with carbonated beverages accounting for the largest share of the market. Analysts expect overall sector revenues to rise by nearly 6 percent in 2026 as urbanization, population growth and rising retail expansion continue to support demand.

Despite that growth, the market remains heavily concentrated around multinational players led by Coca-Cola and Pepsi. Dewji’s entry is therefore being viewed as one of the most serious regional challenges the global beverage giants have faced in Kenya in recent years.

Industry observers believe MeTL could gain traction quickly because of its established logistics network across East Africa and its experience in producing low-cost consumer goods. The company already operates in sectors ranging from agriculture to textiles and edible oils, employing tens of thousands of workers across the region.

At the same time, Coca-Cola is continuing to strengthen its African operations through major investments and restructuring plans. Recent industry data show the company and its bottling partners are increasing spending on manufacturing capacity and energy efficiency projects across several African markets.

Economic analysts say competition in Kenya’s beverage market is likely to intensify further over the next three years. Forecasts for 2027 suggest that regional beverage producers could collectively capture up to 20 percent of Kenya’s carbonated drinks segment if current pricing trends continue and consumer purchasing power remains under pressure.

The investment is also expected to create hundreds of direct and indirect jobs in manufacturing, transport and retail distribution around Mombasa and other urban centers. Kenyan trade experts believe the project could encourage additional cross-border industrial investments between Kenya and Tanzania, whose economic ties have strengthened steadily since 2024.

“This is more than a beverage factory,” said an economist based in Nairobi. “It reflects the emergence of regional African companies capable of competing with multinational brands on their own territory.”

If the project moves forward on schedule, production could begin before the end of 2027, opening a new chapter in East Africa’s fast-growing consumer goods industry.