Africa’s richest man, Aliko Dangote, has deepened his investment footprint in Kenya with his private equity fund acquiring one of the country’s oldest tour operators for an estimated Sh4 billion ($31 million).
Alterra Capital, a private equity firm backed by Dangote and other wealthy investors, has fully acquired Pollman’s Tours and Safaris Limited, marking the fund’s second major investment in Kenya after its purchase of the Java House restaurant chain.
Industry insiders familiar with the transaction confirmed to our publication that the deal valued at approximately Sh4 billion signals Alterra’s strategic push into East Africa’s rapidly growing tourism sector.
Pollman’s Tours and Safaris has built a reputation over decades as one of Kenya’s most established tour operators, boasting a fleet of over 200 custom-designed vehicles specifically built to navigate the region’s diverse terrains.
The company specializes in guided safaris and sells travel packages to travel agents and tour operators globally.
The acquisition comes at a time when Kenya’s tourism sector is experiencing significant growth, with holiday-bound tourist arrivals exceeding the one-million mark for the first time in 2024 and earnings reaching Sh650 billion ($5 billion).
Founded in 2020 with a focus on investing in African businesses, Alterra Capital counts among its investors Dangote (worth $23.9 billion according to Forbes), co-founders of US private equity giant Carlyle Group David Rubenstein and Bill Conway, Norway’s state-owned Norfund AS, and the World Bank Group’s International Finance Corporation (IFC).
The Competition Authority of Kenya (CAK) has already approved the acquisition, noting that the transaction does not raise competition concerns as Alterra was not previously operating in the tour operator market.
According to the CAK, Kenya’s tour operator market remains highly competitive with 322 active players.
This investment represents a new approach for the Nigerian billionaire whose previous attempts to enter Kenya’s cement industry—his primary area of business—have been unsuccessful despite years of planning.
Dangote had since 2014 been linked with plans to build a cement plant in Kenya, which has repeatedly been postponed.
Dangote’s backing of Alterra Capital reflects a growing trend among Africa’s ultra-wealthy to invest through specialized funds that can identify and grow promising businesses across the continent.
This approach differs from the traditional practice where wealthy individuals directly hold stakes in various companies.
Industry observers note that Alterra’s model of providing both capital and strategic support to scalable businesses in sectors such as consumer goods, logistics, healthcare, tourism, and technology is filling a crucial gap in Africa’s investment landscape, especially as some Western private equity firms have retreated from the continent due to the mismatch between available deals and their preferred investment sizes.
With this latest acquisition, Dangote has significantly expanded his influence in Kenya’s economy through the private equity route, potentially setting the stage for further investments in East Africa’s largest economy.
The Pollman’s acquisition includes the company’s parent, ARP Africa, which also owns Ranger Safaris of Tanzania and the United Kingdom’s ARP Africa Travel, positioning Alterra to benefit from the broader East African tourism market.
