German-based cleaning equipment manufacturer Karcher has announced an approximate €3 million (Sh428 million) investment in the Kenyan market.
The firm is setting up a regional distribution center in Nairobi both as a business expansion strategy and a way of evading the toughening global import supply chain in the wake of high logistics costs resulting from pirates attacks in the Red Sea corridor.
The distribution center is at the Freight Forwarders Solutions warehouse at Tatu City.
The brand has already established a presence in seven Carrefour outlets and has partnered with various distributors to cater to different customer segments.
It has a flagship store located in Upper Hill that serves as a brand store and service center operated by Equipment and Logistics Limited who was recently presented with a twenty-year partnership award.
Christian May, deputy CEO and chief sales officer at Karcher says the goal is to transform the cleaning landscape in Kenya by bringing advanced products and services to our customers.
"By establishing Kenya as our regional hub, we are reducing lead times and enhancing responsiveness, ensuring prompt service and satisfaction for our clients."
Karcher, is a B2B and B2C global brand known for its high-pressure cleaners, floor care equipment, parts cleaning systems, wash water treatment, military decontamination equipment and window vacuum cleaners, among others.
Karcher Logistics Partner, Freight Forwarders Solutions CEO, Ben Clay said his company is committed to empowering businesses with seamless logistics solutions, leveraging technology, and fostering excellence in service delivery and economic growth.
"As a global leader in cleaning technology, Karcher exemplifies German engineering excellence and innovation. We look forward to further collaboration and mutual growth between our two nations," said Sebastian Groth, Ambassador of the Republic of Germany to Kenya.
Karcher Kenya MD Richard Mumo added that the distribution center holds high-value levels of stock to service customers conveniently.
"This investment ensures that our partners no longer have to wait for the 90- day lead time from Germany to Kenya. Additionally, we bear the costs of shipment, freight, duties and taxes,” he said.
“We have seen the impact of external factors such as the Red Sea crisis and through our regional distribution center we can brace the impact of these external shocks for our partners and customers.
He added that this strategic initiative has significantly reduced lead times, demonstrating unwavering commitment to customer-centricity and responsiveness.
"The Brand is clear on innovation with the courage to break new ground and the conviction to do things differently"
“This philosophy results in solutions with convincing performance, quality and handling that are one step ahead of the market. Because for us cleanliness is the best challenge in the world. This is what we work towards. Every day."
On his part, Joseph Nguyo, denior deputy secretary, State Department for Investment Promotion, congratulated the Karcher team for the big move saying that the firm has tapped into Kenya’s special economic zones, one of the key investment areas that the government is focusing on.
"The government recognises this move as an investment on value chains, employment created and we are committed to making the economic environment good for you and other investors,"Nguyo said.