Table of Contents
Key Points
- Kenya’s Kenafric Industries acquires Economic Industries Ltd., boosting its stationery market share to 22.6%, becoming the second-largest player in Kenya.
- CEO Mikul Shah plans to scale operations, introduce innovative products, and leverage automation and data-driven production for efficiency.
- Amethis and Metier Private Equity may sell Kenafric stakes worth over $100 million, highlighting strong confidence in its future growth.
Kenafric Industries Ltd., East Africa’s largest confectionery maker controlled by Kenya’s billionaire Shah family, has expanded its footprint with the acquisition of Economic Industries Ltd., a leading stationery manufacturer. This strengthens Kenafric’s presence in the fast-moving consumer goods sector.
The acquisition, which took effect Tuesday after approval from the Competition Authority of Kenya (CAK), allows Kenafric to tap into the stationery market while leveraging its vast distribution network. With established operations in Kenya, Uganda, Tanzania, Burundi, and the Democratic Republic of Congo, the company aims to introduce stationery products across these key East African markets.
Before the merger, Kenafric controlled 12.3 percent of Kenya’s stationery market, trailing industry leader Twiga Stationers and Printers (49.4 percent) and Kartasi Industries (18.2 percent). Economic Industries, ranked fourth with a 10.3 percent market share, boosts Kenafric’s stake to 22.6 percent, making it the country’s second-largest stationery player.
Growth strategy and leadership changes
Kenafric CEO Mikul Shah said the merger combines Economic Industries’ expertise with Kenafric’s manufacturing and distribution strengths, setting the stage for expansion and innovation.
“With this acquisition, we are in a stronger position to scale operations, introduce innovative products, and deliver more value to our customers,” Shah said at the merger’s launch event.
Bhavesh Shah, former Managing Director of Economic Industries, will lead Kenafric’s new Stationery Division and oversee regional growth. The company also plans to roll out eco-friendly packaging and advanced school and office solutions, aligning with sustainability trends in the consumer goods sector.
“We are investing in automation, data-driven production processes, and a stronger distribution network to sharpen our competitive edge,” said Kenafric Chairman Bharat Shah.
Market leadership
Founded in 1987 by the Shah family, Kenafric has grown from a small footwear maker into a major player in East Africa’s confectionery, beverage, biscuit, and culinary markets.
Under the leadership of Chairman Bharat Shah and Managing Director Kirtan Shah, the company has expanded its reach across Kenya, Uganda, Tanzania, Rwanda, Burundi, the DRC, and Malawi. It directly employs over 1,500 people and supports more than 7,500 indirectly.
Kenafric’s distribution network is a key driver of its success, with 200 motorbikes serving more than 40,000 retail outlets, covering both formal and informal trade channels. The company’s confectionery division remains a market leader, producing over 40 million pieces of gum every month.
Looking ahead
Kenafric’s growth strategy took a significant step forward in 2022 when it partnered with India’s Britannia Industries, enabling Britannia’s entry into Kenya as a launchpad for broader African expansion. Now, Kenafric is eyeing Zambia as its next major market.
The company is also attracting investor interest. Reports suggest that Amethis and South Africa’s Metier Private Equity Ltd. are looking to sell stakes in Kenafric worth over $100 million, signaling strong confidence in its future prospects.
By adding stationery to its product portfolio, Kenafric is reinforcing its position as a regional consumer goods powerhouse, further strengthening its influence across East Africa’s manufacturing and FMCG sectors.
