Kenya: German manufacturer Stihl Group chooses Kenya as East African hub
Nairobi – The German manufacturer of outdoor power tools The Stihl Group is set to establish its East Africa center in Kenya.
The subsidiary dubbed Stihl East Africa will serve customers in Kenya, Uganda, Tanzania, DRC, Rwanda and Burundi, among others. The offices will be inaugurated later this month.
Stihl East Africa Managing Director Francois Marais said Kenya is a gateway to East and Central Africa and its infrastructure provides access to these markets.
“Our plan is to distribute our products from Kenya to the traditional East African market which includes Tanzania, Uganda, Burundi, Rwanda, South Sudan, Ethiopia and the countries of the Horn of Africa We are also considering the new partner state in the East African Community (EAC), the Democratic Republic of Congo (DRC) We will have representatives on the ground in all these countries who will ultimately deal with our customers through the concession model,” said Marais.
The Kenyan hub will be the second in Africa, Stihl established its first African sales subsidiary in 1996 in South Africa.
“Kenya is a stable and dynamic economy with great potential for growth, local talent in Kenya has really enabled us to grow our business with their expertise and local knowledge,” said Marais.
The STIHL Group develops, manufactures and distributes outdoor power equipment for forestry, agriculture, landscaping, construction and cleaning customized for professionals and discerning consumers.
The company is targeting the booming agriculture and construction sectors in the region as governments continue to increase investment in these areas.
Agriculture is a sector that is at the heart of the EAC economy, contributing between 24-44% of GDP in the partner states, while also representing the livelihoods of around 80% of the region’s population. .
The combined EAC has 300 million inhabitants after the entry of the DRC which has more than 90 million inhabitants. The bloc also has a combined gross domestic product (GDP) of $250 billion.