Toyota Tsusho’s healthcare division has completed its acquisition of Goodlife Pharmacy, seizing full control of East Africa’s biggest drugstore chain as the Japanese trading house accelerates its expansion into consumer-facing businesses across the continent.
CFAO Healthcare bought the remaining 69.9% stake from private equity firm LeapFrog Investments, three years after initially acquiring a minority position. The transaction received regulatory approval from the COMESA Competition Commission and marks the largest private equity-led retail pharmacy exit in Sub-Saharan Africa excluding South Africa.
Goodlife operates nearly 150 branches across Kenya and Uganda, serving over 2 million customers annually through retail services, diagnostics and home delivery. LeapFrog originally acquired the chain for Sh2.2 billion ($16.3 million) in 2016 and expanded its footprint from 19 stores to 145 by last year.
The deal positions Toyota Tsusho to capture growth in Kenya’s pharmaceutical market, which is projected to generate approximately Sh156.2 billion ($1.15 billion) in revenue by 2025. However, the company faces intensifying competition from established players including Haltons Pharmacy and digital newcomers like MyDawa in a fragmented market where regulatory challenges and supply chain disruptions remain persistent headwinds.
CFAO plans to expand into Tanzania and parts of Southern Africa, though achieving profitability across diverse regulatory environments may prove challenging for the automotive-focused conglomerate.
