More than 15 foreign companies are considering setting up manufacturing and distribution operations in Kenya, as the country seeks to attract investment in building materials and position itself as a regional supply hub for East and Central Africa.
The potential investments come as demand for construction materials rises alongside government-backed affordable housing projects and infrastructure development, creating opportunities for manufacturers of ceramics, roofing materials, plumbing equipment and electrical fittings.
Kenya National Chamber of Commerce and Industry (KNCCI) president Dr Erick Rutto said the chamber was engaging foreign exhibitors to explore opportunities for establishing local production facilities and partnering with Kenyan businesses.
The chamber plans to conduct feasibility studies to help the companies assess the cost of production, availability of raw materials, electricity prices and suitable locations for setting up factories.
“We have had discussions with almost 15 companies, and they are very interested in establishing their factories and businesses here in Kenya, either for distribution or production,” Dr Rutto said.
The proposed investments could help expand Kenya’s manufacturing base, create employment and reduce dependence on imported finished building materials, while giving foreign firms access to a wider regional market.
However, the companies’ interest is still at an exploratory stage, with the value of the proposed investments, the number of factories likely to be established and implementation timelines yet to be disclosed.
Dr Rutto said the chamber was working to identify suitable local partners and distribution networks that would enable the firms to serve both Kenya and neighbouring markets.
“We have agreed with the exhibitors that we are going to do visibility studies for them, to see how they can make Kenya their hub,” he said.
The assessments will examine factors of production, raw materials, power costs and the most suitable locations for industrial operations, alongside potential partners for distributing products across East and Central Africa.
The initiative is intended to capitalise on Kenya’s domestic construction needs while positioning local factories to serve regional markets under the African Continental Free Trade Area (AfCFTA).
The country faces a housing deficit estimated at more than two million units, while the government’s affordable housing programme is creating demand for a range of construction products, from structural materials to household fittings.
Dr Rutto said foreign exhibitors had shown interest across several segments of the construction industry, particularly ceramics, plumbing and electrical and mechanical installations.
Attracting manufacturers could allow Kenya to capture more value from this demand by producing materials locally rather than relying heavily on imported finished products.
But turning the expressions of interest into operational factories will depend on the competitiveness of Kenya’s business environment, including energy costs, taxation, logistics and access to inputs.
Dr Rutto said consistency in government policy was an important consideration for investors making long-term commitments.
“The most important thing that the private sector looks at, both local and international, is policy. The policy must be a long-term policy, consistent and not changing every time,” he said.
For manufacturers, the prospect of sustained demand from housing and infrastructure projects could provide a basis for investment planning. However, they will also need confidence that local production can compete with imports on price, quality and reliability.
The investment drive comes as Kenya seeks to strengthen its role as a regional commercial centre, with foreign manufacturers looking beyond the domestic market to reach customers in neighbouring countries.
Eusine Heymans, senior vice-president at DMG Events, said the ninth edition of Big Five Construct Kenya had attracted more than 150 exhibitors from over 25 countries, including Italy, Turkey, China, Germany and Egypt.
The exhibition provides a platform for international suppliers to showcase products, engage local businesses and explore commercial partnerships in Kenya’s construction sector.
“We know there is strong investment in housing, transport and wider infrastructure projects in Kenya. The country is also the gateway to East Africa, bringing together stakeholders and creating opportunities that go beyond the local market,” Heymans said.
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