Fast-moving consumer goods manufacturer Kenafric Group now targets the bigger East Africa market after it successfully acquired a manufacturer of school, office and general stationery.
The company said it wants to ride on the acquisition to take stationery products into Tanzania, Uganda, Burundi and the Democratic Republic of Congo.
“By integrating Economic Industries Limited’s expertise with our established manufacturing and distribution network, we are poised to expand our market, drive innovation, and deliver more value to consumers,” Mikul Shah, Kenafric Group Chief Executive Officer (CEO) said at an event to launch the merged business on Thursday.
“Economic Industries Ltd has been producing stationery for the local market, while Kenafric has been strong in exports. By combining forces, we can scale up operations, reduce production costs, and make high-quality stationery more affordable,” the CEO added.
The Competition Authority of Kenya (CAK) in December approved the acquisition of Economic Industries Limited by Kenafric.
The deal catapulted Kenafric to the second-largest manufacturer of stationary products in Kenya, overtaking Kartasi Industries which has been the second most dominant player in the market.
Besides stationery, Kenafric manufactures polyvinyl chloride used to make carpets and tents, ethylene-vinyl acetate, rubber footwear, soft drinks, confectionery, and culinary products.
Economic Industries Limited, known for the Economic and Falcon brands of exercise books, writing pads, counter books, colouring pencils, and other stationery, is primarily involved in the manufacturing and distribution of such products.
According to past data by CAK, Kenafric controlled a larger share of the stationery market in 2022, with 20.9 percent, while Kartasi controlled 9.7 percent, and Twiga – the market leader – had 38.8 percent.
Kartasi, however, grew its share to overtake Kenafric as the second top producer of stationery, while Kenafric’s share gradually slimmed as Twiga also widened its market control.
Following the merger, the former Managing Director of Kenafric Manufacturing Limited Bhavesh Shah, has been appointed the Managing Director of Kenafric Manufacturing Limited’s stationery division. He will be expected to drive the company’s East African expansion strategy.
Kenafric Group Chairman Bharat Shah said the company would step up innovation and market expansion.
“We are investing in smarter machinery, data-driven processes, and stronger distribution networks. Automation and real-time analytics will boost efficiency and give us a competitive edge,” he said.
Kenya’s stationery market is expected to grow, driven by the new education curriculum that demands more stationery for learners.
Kenafric has been riding on both organic and inorganic growth. In 2022, the manufacturer teamed up with an Indian food producer to buy out the distressed biscuit maker Britania at an estimated value of Sh1 billion.
