KENYA – Printcare PLC, a leading printing and packaging company has revealed plans to set up a fully-fledged packaging company in Kenya.
Printcare Plc and its subsidiaries will hold a 68.7 percent stake in the Kenya unit, as stated in a stock exchange filing by the company.
Further information will be provided on the finalization of the current negotiations in progress with the connected parties, the statement said.
The group has diversified considerably, and its current customer portfolio includes firms in almost all categories of industry, including beverages, pharmaceuticals, apparel, FMCG (Fast-Moving Consumer Goods), publishing, telecom, financial services, tobacco, and lotteries.
The decision to set up a company in Kenya comes at a time when the packaging industry in the country is projected to grow at a compound annual growth rate (CAGR) of approximately 4.8% from 2021 to 2026.
The growth is attributed to the changing market dynamics. While the availability of national statistics remains a challenge, there is ample information available on key aspects of Kenya’s packaging market, including industry trends, emerging opportunities, and strategies for success.
According to Packaging World, the manufacturing sector in the country ranks second and contributes approximately 11% to the Gross Domestic Product (GDP), with packaging representing an estimated 2% of the GDP.
With a steady growth in demand and market, the packaging industry in the country has attracted interest from other multinational companies.
In December of last year, Nexgen, a US-based packaging provider, announced plans to construct a US$2 million plant in Nairobi.
The factory, which will be located within the Export Processing Zone at Athi River, promises to create at least 50 direct jobs for locals. Additionally, it will attract indirect investments to the region.
In addition, the investment will strengthen the company’s operations in Ethiopia, Egypt, and West Africa. The facility will also expand Nexgen’s product offerings into the African market, focusing on sustainable solutions.
Meanwhile, in August 2022, Sidel opened a new office in Nairobi expanding its presence in East Africa.
The move increases Sidel’s support for its customers in East Africa, which is a key market for the company and one of the fastest-growing regions on the continent.
According to Sidel, the establishment of a new East Africa office will allow the company to promote development in the region by collaborating more closely with customers. This will involve providing dedicated engineering expertise and on-the-ground customer service.
