Family Business Exit Strategies in Focus

2 October 2025

We recently hosted two successful breakfast events in Mombasa and Nairobi, bringing together local and international finance professionals to discuss exit strategies for family businesses. Led by Faizal Bhana, our Director for the Middle East, Africa and India, the events were co-hosted with the East Africa Venture Capital Association (EAVCA) and local partners Clyde & Co (Mombasa) and Dentons Hamilton Harrison & Mathews (Nairobi).

Here are some key takeaways from the discussions:

1. Multiple exit routes available

Family-owned enterprises in Kenya and East Africa have a range of exit options, including outright sales to strategic buyers, private equity deals, management buyouts, IPOs, intra-family succession and staged liquidity events, such as share buybacks. Each route involves trade-offs between liquidity, control, valuation and continuity. The choice depends on the family’s priorities as well as legal and tax framework in question, including capital gains tax, stamp duty, succession law and listing requirements.

2. Governance and operational readiness drive value

Buyers and investors place a premium on predictable management, audited accounts, clean land and title records and clear shareholder agreements. Independent governance overlays are often critical in building credibility and achieving stronger valuations. Operational and financial readiness, rather than the type of transaction alone, often determines whether an exit delivers maximum value.

3. Market dynamics shape outcomes

Sector cycles, market depth in Nairobi and the wider region, and the business’s overall scale play significant roles in determining whether an IPO is realistic or whether a private sale may deliver greater value. Families planning exits must assess the timing of sector opportunities and investor appetite carefully before choosing their path.

4. Jersey’s role in structuring exits

Jersey continues to play an important role as a structuring jurisdiction in family business exits. Vehicles such as limited partnerships, special purpose vehicles and private trust companies are familiar to institutional investors and support governance continuity, family succession planning and cross-border investment. However, Jersey structures must comply with global transparency rules, including economic substance, beneficial ownership disclosure and robust KYC/AML obligations. They are designed to add credibility and efficiency.

5. Onshore and offshore balance is crucial

East African tax and legal obligations remain central to any exit strategy. International structures can support investment and family governance but they do not remove exposures to capital gains tax, stamp duty or succession rules. The most effective strategies blend strong onshore preparation with well-designed Jersey structures, ensuring compliance while building investor confidence and preserving long-term family wealth.

6. Preparation is a long-term process

Exits should be viewed as the culmination of a family business lifecycle, not a single event. Successful strategies involve years of preparation: clarifying objectives (liquidity versus control versus legacy), strengthening governance and reporting, resolving legal and title issues, running realistic valuations and modelling tax and cashflow implications. Engaging East African and Jersey advisers early, conducting vendor due diligence and preparing communication strategies for employees, regulators and family members all increase the likelihood of a smooth and value-maximising exit.

To sum up, the discussions at both the Mombasa and Nairobi events highlighted the importance of structured planning, governance and international collaboration in helping family enterprises navigate complex exit processes. Jersey’s role as a well-regulated international finance centre was a key theme, offering families proven structures to attract investment, manage succession and preserve value across generations while remaining compliant with Kenyan legal and tax requirements.

For more information, please contact Faizal Bhana, Director – Middle East, Africa and India, Jersey Finance.