Kegna Beverages S.C. officially launched its flagship product, Kegna Premium Lager Beer, during a major event in Addis Ababa, Food Business MEA reported. The new lager, brewed with local barley and featuring 5% ABV, is available in 33cl and 50cl bottles and 30-liter kegs, with national distribution beginning mid-June. The launch marks a USD 250 million investment into Ethiopia’s beer sector and the opening of a 3 million hectoliter brewery in Ginchi, about 80 km west of the capital.
The brand name “Kegna,” meaning “ours” in Afaan Oromo, underscores its grassroots character and reflects a unique ownership model: over 5,000 Ethiopian shareholders, including farmers, individuals, cooperatives, and institutions, hold stakes in the company. Control of the enterprise lies with the Oromia regional government, and financial backing came from the Development Bank of Ethiopia, which reportedly invested USD 100 million to secure technology from German supplier Krones.
Positioned on a 110-hectare site, half of which is dedicated to the brewery, the facility blends state-of-the-art brewing machinery with local engineering. Afework Legesse, Chief Operations Officer, emphasized efficiency, noting that one modern unit can replace five conventional machines. Abiyu Abera, Commercial Manager, described the product as “made of Ethiopia” and a “shared legacy.” The company currently employs over 250 workers, with plans to expand to 1,000 jobs. When fully operational, the plant is expected to employ 450 people from surrounding communities.
Production capacity is set at 3 million hectoliters, with plans to double output to 6 million within four years. The strategy includes sourcing raw materials from regional barley farmers, supporting local agriculture while reducing dependency on imported inputs.
However, the company faces challenges, particularly Ethiopia’s increasing beer taxation. As of March 2025, excise tax on malt beer stands at 40% or ETB 28 (USD 0.20) per liter, whichever is higher, while beer brewed solely from domestic barley is taxed at 35% or ETB 23 (USD 0.17) per liter. This poses a profitability hurdle in a market where beer typically retails for under USD 1 per bottle.
Despite these challenges, Kegna Beverages aims to claim a major share of Ethiopia’s competitive beer market, currently served by six brewers operating 14 plants with a total installed capacity of 18 million hectoliters. Rivals include Heineken, BGI (Castel), and others. The market has already seen one major exit: in 2022, Diageo sold its Meta Abo Brewery to BGI after failing to meet its business objectives (inside.beer, 25.1.2022)
While some industry forecasts expected domestic beer production to reach 25 million hectoliters by 2023, actual output is estimated to be only 11 million hectoliters this year, up slightly from 10 million in 2024. Nonetheless, Ethiopia’s demographics remain promising. With a population of 135 million and about one million people entering drinking age annually, Kegna Beverages sees strong growth potential in the long term. Beyond beer, the company also plans to diversify into soft drinks, juices, and bottled water.
