Power tools manufacturer STIHL East Africa has announced to invest Sh100 million in local accessories manufacturing every year as it seeks to localise its product development in the region.
The firm has partnered with local firms that include Proteq Automation Ltd and Tippers and Trailer Limited who have been tasked to make accessories for all STIHL East Africa products in the region.
STIHL East Africa MD Francois Marais says the move will see the firm reduce accessory costs, increase employment and boost the local economy by injecting Sh100 million every year.
“STIHL continually demonstrates its world-leading competence with innovations designed to improve functionality, ease of product use, environmental protection, and health and safety at work,'' Maraias said.
The move comes as the firm recently launched new products in the market designed to enable smallholder farmers to adopt mechanization in their farms in a bid to increase their productivity and income.
The range of products available in the East African market includes tillers, water pumps, brush cutters, tea pruners, earth augers, concrete cutters, high-pressure cleaners, and vacuum cleaners, chainsaws, among others.
“Buying decisions for machines are no longer taken merely based on design and engineering criteria, but rather on the question, ‘how will you as a manufacturer support my business, ensuring performance, efficiency and productivity of my machine? he said.
The firm's product development officer Daniel Mandellah says some of the accessories to be made locally include agricultural machinery attachments and spares, dealer's shop systems, bolts, and nuts for various machines.
“Customers today are looking for lifetime support and services – and when it comes to the latter, accessories supply plays a crucial role. With local supply, we will never have to worry about spare parts,” he said.
Kenya’s manufacturing industry’s contribution to the Gross Domestic Product (GDP) has been declining, from 9.3 per cent in 2016 to 7.2 percent in 2021 according to data from the Kenya National Bureau of Statistics (KNBS, 2022), despite its potential to transform the economy.
Early last year, KMA unveiled a roadmap to increase the sector’s contribution to the GDP to 20 per cents by 2030.
The initiative, Kenya Manufacturing 20by30, seeks to maximize opportunities available to spur local industry growth.