Pepsi ramps up Kenyan expansion drive with partnership

Diana Nyambura General Manager Skyward and John Otieno General Manager PEPSI exchange document after signing a partnership to enhance travel experience for passengers across Kenya. [Wilbrforce Okwiri,Standard]

Global beverage Pepsi has set its sights on expanding its market share in Kenya, signalling growing competition in a sector long dominated by Coca-Cola.

Speaking on Friday in Nairobi during the announcement of a partnership with local carrier Skyward Express, John Otieno, country general manager for SBC Kenya, the PepsiCo franchise bottler, said the deal reflects Pepsi's ambition to strengthen its presence in Kenya and across Africa.

"Pepsi globally is focused on winning in Africa, and East Africa is at the heart of that plan. Uganda is already a Pepsi stronghold, and Tanzania has positioned us among the top players. It is only natural that Kenya becomes our next big growth market," Otieno said.

The Kenyan soft drinks market has traditionally been dominated by Coca-Cola, which enjoys near-total control of distribution networks and customer loyalty across much of the country. However, Pepsi has been steadily increasing its footprint through aggressive pricing, product diversification, and partnerships with local businesses.

Analysts say the competition is slowly reshaping consumer preferences, especially among younger demographics who are more open to alternatives. Under the Skyward deal, Pepsi beverages will now be served free of charge on all the airline's flights across 11 destinations in Kenya.

Diana Nyambura, general manager Skyward, said the collaboration is intended to elevate passenger experience while also aligning with a fast-growing brand.

"We are one of the few airlines in Kenya that offer complimentary beverages. Partnering with Pepsi allows us to enhance our passengers' choices and also tap into a brand that is resonating with the Kenyan market," Nyambura said during the launch.

Industry observers note that Pepsi's strategy in Kenya is shifting from being just a competitor to Coca-Cola, to embedding itself in consumers' daily routines from households and offices to airlines, eateries, and retail spaces.

"We want Kenyans to find Pepsi wherever they are whether it's with a meal at home, during a mid-morning break at the office, or while traveling. Our goal is to be present at every point of refreshment," Otieno explained.

While Pepsi still faces an uphill task against competitors entrenched distribution and brand loyalty, moves like the Skyward partnership highlight a more aggressive push for market share in a fast-growing and increasingly competitive beverages sector.