KENYA – Skanem Africa, a leading label manufacturer, has relocated its operations to Limuru in a strategic move to optimize production capabilities and expand its market reach in Kenya and the greater East African region.
This relocation is part of Skanem’s broader strategy to streamline operations, improve efficiency, and better serve its diverse clientele across sectors such as food, personal care, home care, and automotive industries.
The company proudly announced on LinkedIn, “All our machinery has been successfully moved to our brand-new, cutting-edge factory in Tilisi, Limuru. This move was accomplished in just one month.”
Skanem’s decision to relocate is a significant step toward reinforcing its presence in the East African market. Having operated in Kenya for several years, the company intends to leverage this new base to meet the growing demand for high-quality labeling solutions in the region.
This move comes at a time when Kenya’s label manufacturing industry is evolving, driven by regional growth and rising consumer demand.
Despite recent stagnation, the expansion of manufacturing units and the need for diverse labeling applications across various sectors present promising market potential.
While the labeling industry in Kenya has not yet reached its full potential, changing demographics and increasing consumer demand for finished products support its development.
Additionally, trends in sustainability and technological investments position the industry for future growth.
Domestic manufacturing vs. imports
Estimates indicate that about 90-95% of labeling needs are met locally, reducing the reliance on imported finished labels in East African markets.
Several label manufacturing units have been established in the region, including Skanem Africa’s newest facilities in Uganda and Tanzania.
As the economy develops, further investment in label manufacturing is anticipated, especially as more finished products reach consumers.
However, one of the industry’s biggest challenges is the growth of flexible packaging, which allows much of the information typically found on labels to be printed directly onto the packaging itself.
This trend could reduce the demand for traditional labels, impacting label production.
Recently, Skanem Africa inaugurated a new labeling factory in Dar es Salaam, Tanzania. This smaller facility, compared to Skanem’s operations in Kenya, is primarily designed to boost production volume, capacity, and lead times.
The company aims to establish a local manufacturing presence to better serve its existing customers and attract new clients across the region.
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