New Nairobi facility targets Africa’s reliance on imported bank cards, SIMs

East Africa’s digital and financial infrastructure could shift with the commissioning of the SecureID Kenya Card Production Facility.

The new plant is aimed at localising the production of payment cards, SIM cards and digital identity solutions.

The facility, launched in Nairobi, comes as the region continues to rely heavily on imported smart cards and identity systems, often produced in Europe or Asia.

Industry estimates indicate that African countries spend hundreds of millions of dollars annually outsourcing card manufacturing and personalisation, contributing to delays, higher costs and exposure to supply chain disruptions.

Speaking at the launch, SecureID Founder and Executive Vice Chairman Kofo Akinkugbe said the plant is designed to serve as a regional hub for EMV-compliant banking cards, telecom SIMs and government-backed identity credentials.

She noted that localising production could reduce turnaround times for banks and telecom operators, while strengthening supply chain security.

According to the World Bank, over 1.1 billion people in Sub-Saharan Africa still lack formal identification, limiting access to financial services and public programmes.

At the same time, data from Global System for Mobile Communications Association (GSMA) shows mobile penetration in the region has surpassed 45 per cent, driving demand for SIM cards and digital identity-linked services.

Kenya, in particular, has one of the most advanced digital payment ecosystems on the continent, anchored by platforms such as M-Pesa.

The country processes billions of shillings in mobile transactions daily, increasing the need for secure, locally managed financial infrastructure.

Analysts say domestic card production could support banks as they expand services, especially as interoperability and cross-border payments grow within the East African Community.

Akinkugbe stated that Africa remains underrepresented in the global card manufacturing value chain, noting the continent accounts for nearly 18 per cent of the world’s population but less than 5 per cent of global card personalisation capacity.

“That gap presents both a vulnerability and an opportunity,” she said.

“If successful, the Nairobi facility could reduce reliance on imports while building technical expertise in secure manufacturing, an area that has traditionally required specialised skills and strict compliance standards.”

However, analysts caution that the long-term impact will depend on uptake by banks, telecom firms and governments, as well as policy support, and that local production must also remain cost-competitive with established global suppliers to gain traction.

The plant is part of a phased investment estimated at approximately Sh2.7 billion ($20 million), positioning Kenya to play a larger role in the global smart card supply chain.