NAIROBI, Kenya — The Competition Authority of Kenya has approved the acquisition of certain assets of Mastermind Tobacco (K) Limited by Signature Leaf Limited, marking a major development for one of the country’s once-prominent cigarette manufacturers.
Mastermind Tobacco is currently under administration following years of financial and regulatory challenges.
In a Kenya Gazette notice dated October 2, 2026, the Competition Authority said it had authorised the proposed transaction involving the two companies.
“The proposed acquisition of certain assets of Mastermind Tobacco (K) Limited (under administration) by Signature Leaf Limited: Authorization,” the notice stated.
The approval was granted under Section 46(6)(a)(ii) of the Competition Act, Cap. 504.
Gazette Notice No. 15916, dated August 21, 2026, and signed by Competition Authority Director-General David Kemei, said the regulator had exercised its powers under the Act to authorise the transaction.
The approval concerns certain assets of Mastermind Tobacco and does not, by itself, amount to the acquisition of the entire company.
Rise Of Mastermind Tobacco
Mastermind Tobacco was founded in 1987 by the late Kenyan industrialist and electrical engineer Wilfred M’iti Murungi after he left British American Tobacco Kenya.
The company began production in Nakuru before expanding its operations to Nairobi as the business grew.
Its cigarette brands included Supermatch, launched in 1989, and Rocket, introduced in 1991.
At its peak, Mastermind grew into Kenya’s second-largest cigarette manufacturer after British American Tobacco and employed about 1,000 workers.
The company was also reported to have contributed billions of shillings in taxes annually during its strongest years.
Murungi had previously worked as an engineer at Kenya Power and Lighting Company before joining BAT Kenya, where he rose to become technical director.
After leaving BAT in the mid-1980s, he initially ventured into cigarette distribution in what was then Zaire, now the Democratic Republic of Congo, before establishing Mastermind Tobacco.
His business interests later extended beyond tobacco through the Continental Group of Companies, with interests in distribution, marketing, communications, real estate and engineering.
He also served on the boards of several Kenyan companies and industry organisations.
Financial Troubles Deepened
Mastermind later encountered financial difficulties amid mounting debts and regulatory disputes.
The company was involved in a prolonged tax dispute with the Kenya Revenue Authority over reported tax arrears of about Sh2.9 billion.
Murungi died on June 6, 2019, in his early seventies.
Following his death, the company continued to face financial and regulatory challenges, eventually halting production in June 2023.
I&M Bank placed Mastermind Tobacco under administration in December 2023 as efforts to deal with its financial obligations intensified.
About 1,000 employees were subsequently dismissed, while some of the company’s assets were scheduled for auction.
The Competition Authority’s approval now paves the way for Signature Leaf to acquire the specified assets, potentially giving them a new operational chapter after Mastermind’s prolonged financial struggles.
