Consumer goods manufacturer Kenafric has broadened its presence in East Africa by acquiring stationery producer Economic Industries. This acquisition officially commenced on Tuesday after receiving the green light from the Competition Authority of Kenya (CAK).
With this move, Kenafric aims to enhance the availability of quality stationery throughout East Africa, leveraging its distribution network to launch products in Tanzania, Uganda, Burundi, and the Democratic Republic of Congo.
Prior to the acquisition, Kenafric held a 12.3% share of the local stationery market, ranking as the third-largest in Kenya, following Twiga Stationers and Printers (49.4%) and Kartasi Industries (18.2%), as per CAK statistics.
Economic Industries Limited was positioned fourth with a 10.3% market share, which means Kenafric’s share will rise to 22.6% after the merger, elevating it to the second-largest player in Kenya.
“By merging Economic Industries Ltd’s expertise with our robust manufacturing and distribution capabilities, we are set to broaden our market reach, foster innovation, and provide greater value to consumers,” stated Mikul Shah, CEO of Kenafric Group, during the merger launch event.
“While Economic Industries Ltd has focused on local stationery production, Kenafric has excelled in exports. By joining forces, we can enhance our operations, lower production costs, and offer high-quality stationery at more accessible prices.”
In the wake of the merger, Bhavesh Shah, the former Managing Director of Economic Industries, has been appointed as the Managing Director of Kenafric’s Stationery Division, tasked with leading the company’s expansion into East Africa.
Kenafric Chairman Bharat Shah indicated that the company intends to roll out new product lines, including eco-friendly packaging and innovative school and office solutions, to cater to changing consumer demands while upholding high-quality standards.
