Kenya Attracts 15 International Firms Seeking to Set Up Manufacturing Plants
International construction firms are exploring local manufacturing plants in Kenya, drawn by a surging affordable housing market but cautioned by high energy costs and policy consistency.
The push is unfolding at the ninth edition of the Big Five Construct Kenya exhibition at the Sarit Centre in Nairobi. The three-day event has drawn more than 150 exhibitors from over 25 countries to showcase construction materials, equipment and technology.
The Kenya National Chamber of Commerce and Industry (KNCCI) is engaging these international firms to establish local production and distribution partnerships. KNCCI President Dr Erick Rutto said nearly 15 companies have expressed strong interest in setting up factories or distribution hubs in the country.
“We have had almost 15 companies that are very much interested in establishing their factories and companies here in Kenya, either for distribution or production,” Dr Rutto said.
He added that the chamber is conducting feasibility assessments to help investors evaluate raw material availability, electricity costs, factory locations and distribution networks.
The chamber plans to host business-to-business meetings to connect foreign investors with local enterprises. KNCCI aims to position Kenya as a manufacturing and distribution hub for East and Central Africa through these partnerships.
This industrial drive comes as Kenya faces an estimated housing deficit of two million units, with an annual requirement of 250,000 units. Some manufacturers at the exhibition reported that about 70 per cent of their current output serves the affordable housing segment.
Dr Rutto noted that local manufacturing could reduce reliance on imported finished building materials, create jobs and secure a steady supply for housing projects.
“If we are able to attract them and provide incentives for local production, we can move towards meeting our housing needs and make Kenya a hub for building and construction in Africa,” he said.
However, industry players warn that the success of these investments will depend heavily on local production costs, energy prices and predictable government policies. Josine Heijmans, senior vice-president at exhibition organiser DMG Events, said Kenya’s growing infrastructure needs are drawing regional expansion plans from global firms.
She noted that competitive local pricing and quality would allow manufacturers to use Kenya as a gateway to neighbouring markets.
Several international exhibitors are already testing the ground. Turkish firm General Makina manufactures stone-crushing equipment and concrete batching plants used in road, bridge and tunnel projects. The company, which already has equipment and technical support in Kenya, emphasized the importance of local access to technicians and engineers for machinery maintenance and repairs.
Royal Industries, based in Sharjah in the United Arab Emirates, is targeting the market with construction chemicals, sports flooring and prefabricated steel structures for warehouses and factories. Meanwhile, software provider RIB Software is looking to expand its presence by offering digital tools for contractors to manage procurement, project costs and timelines.
KNCCI Director Nancy Muthoni said that the chamber would leverage its business networks to facilitate partnerships between local companies and foreign investors.
