Kenya is seeking to turn its housing deficit and growing infrastructure needs into an industrial opportunity by attracting foreign manufacturers of construction materials to establish local factories and use the country as a gateway to regional markets.
The Kenya National Chamber of Commerce and Industry (KNCCI) says about 15 foreign companies have expressed interest in setting up manufacturing or distribution operations in the country.
The firms are targeting demand for products ranging from ceramics and roofing materials to plumbing equipment and electrical fittings.
KNCCI president Erick Rutto said the chamber plans to conduct feasibility studies to help the firms assess the cost of production, availability of raw materials, power costs and suitable locations for establishing businesses in Kenya.
The initiative is aimed at converting interest generated by the Big Five Construct Kenya exhibition into investment partnerships, local manufacturing and export opportunities across East and Central Africa.
“We have talked to the exhibitors who are here today, and they are very much interested to do business-to-business matchmaking, to be able to get Kenyan companies,” said Rutto.
The chamber, which has more than 60,000 members, is seeking to link the foreign companies with local businesses that can provide distribution networks, partnerships and access to the domestic market.
The move comes as Kenya grapples with a housing shortage estimated at more than two million units, creating potential demand for building materials and construction equipment as the government pushes its affordable housing programme.
Rutto said the exhibitors were interested in several segments of the construction industry, including roofing, walling, flooring, electrical and mechanical installations, ceramics and plumbing equipment.
Some of the foreign manufacturers, he said, already serve the affordable housing segment, presenting an opportunity to supply materials for Kenya's housing programme while building production capacity for regional markets.
“If we are able to attract them and provide incentives for local production, definitely, we are going to achieve the target of covering the over two million houses that we need, and also we are going to make Kenya a hub for Africa, especially under the African Continental Free Trade Area,” he said.
Rutto said the chamber would assess these factors as part of its efforts to position Kenya as a manufacturing base for construction materials serving the wider region.
“The most important thing that the private sector looks at, both local and international, is policy. The policy must be long-term, consistent and not changing every time,” he said.
He attributed the growing interest in Kenya partly to the government's affordable housing programme, arguing that a sustained pipeline of construction projects could give manufacturers greater certainty when planning long-term investments.
Senior vice-president at DMG Events Josine Heijmans, said the ninth edition of Big Five Construct Kenya had attracted more than 150 exhibitors from over 25 countries, including companies from Italy, Turkey, China, Germany and Egypt.
“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.
“The exhibition provides a platform for suppliers to showcase products, compare market opportunities and engage potential customers and business partners.
