Kenya leaves Nigeria in the dust with $5.83bn private equity deals

…becomes Africa’s top private equity destination in 2025 on big-ticket deals

Kenya emerged as the clear favourite among equity investors last year, attracting the most private equity capital by value, leaving its biggest rival, Nigeria, in the dust, a new report by DealMakers Africa shows.

The South Africa-based firm, which tracks mergers and acquisitions (M&A) and corporate finance activity across the continent excluding South Africa, said the East African nation attracted $5.83 billion compared with Nigeria which had $2.39 billion.

However, Africa’s most populous nation retained its position as the continent’s most active market by volume, with 60 deals compared with Kenya’s 58.

Kenya’s strong showing was underpinned by a handful of large-ticket transactions, including the year’s biggest deal — Diageo’s disposal of its stake in East African Breweries Limited (EABL) to Japan’s Asahi Group.

The transaction, which took place in December, included Diageo’s 65 percent stake in EABL and a 53.68 percent holding in UDV Kenya, valued at approximately $2.35 billion and $646 million, respectively. It marks one of the largest investments by a Japanese brewing group in Africa’s alcohol sector.

Read also: Liquidity surge drives OMO comeback despite foreign investor retreat

A second major deal saw Vodacom acquire an additional 20 percent stake in Safaricom for $2.4 billion, further boosting Kenya’s aggregate deal value.

Fewer deals, bigger tickets across Africa

Despite the country’s dominance in value terms, broader activity across Africa slowed. Total deal volume fell by 11 percent to 424 transactions in 2025, while deals excluding South Africa dropped 17 percent year-on-year to 356.

Yet, total deal value in the continent rose 18 percent to $17.3 billion, driven by a concentration of large transactions, even as overall activity hit its lowest level in three years.

Private equity remained a central force, accounting for roughly half of total deal flow.

“Private equity is no longer viewed as an unconventional source of funding,” said Marylou Greig, editor at DealMakers Africa. “It is increasingly seen as a reliable engine for scale, consolidation and long-term value creation across the continent.”

Outlook steady despite global risks

Looking ahead, the outlook for African dealmaking remains cautiously optimistic despite mounting global uncertainty.

Geopolitical tensions — particularly involving the United States and Iran — alongside shifting trade policies continue to weigh on investor sentiment. Rising inflation, partly driven by fuel price increases, could push interest rates higher and raise financing costs, while persistent currency volatility in key African markets may complicate deal structuring and valuations.

Read also: Nigeria, EU advance €700m security cooperation, deepen strategic ties

Still, Africa’s strategic importance is growing. The continent is increasingly viewed as a neutral and critical supplier of minerals and energy resources essential to global supply chains, positioning it as an attractive destination for long-term capital.

For investors, the outlook presents a dual narrative: heightened risks in manufacturing and export sectors amid evolving trade dynamics, but renewed opportunities in minerals, energy and infrastructure.

Market sentiment suggests 2026 could remain a resilient year for African private equity and M&A activity, supported by structural reforms in major economies such as Nigeria and South Africa, as well as the gradual implementation of the African Continental Free Trade Area.