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Tanzania’s Richest Launches $50M Soft Drink Plant to Take on Coca-Cola and Pepsi in Kenya

Mohammed Dewji is not making small moves. The Tanzanian billionaire, East Africa’s richest person with a net worth of $2.1 billion according to Forbes, is investing $50 million in a new soft drinks manufacturing plant in Mombasa through his conglomerate, MeTL Group.

The facility will produce Mo Cola, Mo Xtra, and Mo Malto, with one clear goal: challenge Coca-Cola and Pepsi’s dominance in Kenya’s beverage market.

Price as the Strategy

Dewji’s plan is simple. A 300ml bottle of Mo Cola will retail at Sh15 (about $0.12 or roughly ₦93), less than half the Sh40 industry average in Kenya (around $0.32 or ₦310). That price alone is the main tactic

It worked in Tanzania. MeTL’s low-cost beverages overtook Coca-Cola sales within a decade by making soft drinks accessible to consumers often ignored by multinationals.

The project is still at the planning stage. Dewji said, “We cannot afford to ignore Kenya because it is the largest economy in our region.” Construction could begin within a year, following discussions at the Africa Forward Summit in Nairobi.

A Tough Market

Kenya’s beverage sector is notoriously difficult for new entrants. Coca-Cola Beverages Africa controls about 93.9% of the carbonated drinks market, supported by decades of brand recognition, logistics, and a nationwide distribution network.

Past challengers have struggled. Softa Bottling Company, launched in the late 1990s by Kenyan businessman Peter Kuguru, came close with affordable alternatives but eventually failed due to distribution challenges and competition from global brands.

Currently, Coca-Cola’s closest competitor is Kevian Kenya, maker of Pick and Peel, with a 4.8% market share. Other smaller players include Excel Chemicals (2.3%), Highlands (1.6%), Del Monte (1.4%), and Suntory (0.48%).

Filling the Consumer Gap

Dewji is targeting an underserved market. Stephen Mutoro, secretary-general of the Consumers Federation of Kenya, notes that existing brands do not meet the needs of low-income consumers. Dewji’s pricing strategy is designed to fill that gap.

With a cost-of-living crisis affecting Kenyan consumers and taxation squeezing disposable incomes, the Sh15 price is well-timed both economically and politically.

Beyond Beverages

The Mombasa plant is just one part of Dewji’s strategy. He is also exploring investments in Kenya’s energy and hospitality sectors. This move reflects a growing trend of Tanzanian capital flowing into Kenya.

Global beverage companies are also expanding in Africa, with Coca-Cola pledging $1 billion in South Africa by 2030, highlighting the competitive opportunities in the region.

Expert View

Analysts identify three key factors for Mo Cola’s success:

Maintaining the Sh15 price (about $0.12 or roughly ₦93) without hurting margins.
Building a distribution network beyond major cities.
Sustaining brand investment long enough to shift consumer habits away from Coca-Cola.

Each factor alone is challenging. All three together have defeated previous challengers. Dewji has an advantage: he has achieved this once in Tanzania, giving him a proven operational model.

FAQs

Who is Mohammed Dewji?
He is CEO of MeTL Group, Tanzania’s largest indigenous conglomerate, and East Africa’s richest person in 2026 with a net worth of $2.1 billion. He is also a former Tanzanian parliament member.

What is Mo Cola?
Mo Cola is MeTL’s flagship soft drink, sold with Mo Xtra and Mo Malto, based on a low-cost, high-volume pricing model.

Why Mombasa?
Mombasa, Kenya’s second-largest city and main port, offers easy access to imported raw materials and a gateway for regional distribution.

Has anyone challenged Coca-Cola in Kenya successfully?
Softa Bottling Company came closest in the 1990s but eventually failed. Coca-Cola still holds roughly 94% of the market.

When will construction start?
The project is in planning, with construction expected within 12 months of the May 2026 announcement.