Toyota Kenya has acquired a 35 per cent stake in solar installation company Ofgen to deepen the automaker’s interest in the growing clean energy market.
The acquisition was approved by the Competition Authority of Kenya (CAK) on August 23
The deal will help the auto firm, now known as CFAO Kenya, to diversify its earnings further.
Ofgen has installed over 30 power plants for firms like Serena Hotels, Strathmore University and BAT in the companies’ efforts to cut reliance on electricity from Kenya Power.
“The Competition Authority of Kenya has approved the acquisition of a 35 percent equity stake in OFGEN Limited by CFAO Kenya Limited unconditionally, thereby enhancing investments in renewable energy in the country,” said CAK without providing the value of the deal.
Toyota Tsusho Group is increasingly investing in green energy, including solar power projects, to earn carbon credits. The Japanese multinational will use the credits to cut its carbon production from ventures like car manufacturing and boost the firm’s environment-friendly credentials.
Toyota Tsusho stepped up its diversification plan with the purchase of French distribution company CFAO in 2012, giving it access to businesses, ranging from retail to healthcare, across Africa.
CFAO’s automotive business, which includes distribution of Toyota and Mercedes Benz cars in Kenya, used to contribute more than half of revenue while healthcare, including pharmaceutical distribution, makes up a third.