NAIROBI, Kenya- Kenafric Manufacturing Limited is making waves in Kenya’s stationery market after receiving unconditional approval from the Competition Authority of Kenya (CAK) to acquire Economic Industries Limited (EIL).
This strategic move is set to reshape the competitive landscape, promising benefits for industry players while posing minimal risks to market balance.
Kenafric’s acquisition of EIL comes at a pivotal time, aligning with its plans to strengthen its presence in the educational and commercial stationery market.
Before the deal, Kenafric held a modest 12.3pc market share. Post-acquisition, its share jumps to 22.6pc, positioning it as the second-largest player in the sector, trailing Twiga Stationers, which dominates with 49.4pc.
Known for products spanning footwear, soft drinks, confectionery, and culinary items, the acquisition marks its ambitious push into stationery, where established players like Twiga Stationers and Kartasi Industries have long held sway.
The deal follows EIL’s exit from the market, offering Kenafric a chance to fill the gap and bring fresh competitiveness to the sector.
The CAK’s assessment of the acquisition revealed significant public interest benefits. Key among these is employment retention, ensuring that jobs tied to EIL’s operations remain intact.
Additionally, the deal supports SMEs and reinforces the resilience of Kenya’s stationery sector.
“The acquisition is unlikely to negatively impact competition in the stationery market,” CAK stated in its findings. The move is seen as a step toward stabilizing the industry while maintaining fair competition among key players.
Kenya’s stationery market has been experiencing robust growth, recording a 23.33pc year-on-year increase in 2021, underscoring the sector’s vitality and its alignment with the country’s broader economic goals.
Kenafric’s acquisition of EIL not only reshapes the stationery landscape but also highlights the sector’s potential for growth and innovation.
