Henkel eyes growing revenue with regional expansion

Kenya: Consumer goods giant Henkel plans to grow its adhesive division in Eastern Africa. This is in a bid to grow revenues and cut a heavy reliance on the Kenyan market. The firm is angling to tap into the rising middle class and rapid urbanisation in the region that has led to real estate boom and rise in demand for furniture. This has in turn upped demand for adhesives used in constructing houses and making furniture.

The firm sells its range of adhesives across East Africa, but Kenya accounts for most of its revenue. The country accounts for more than 80 per cent of the revenue earned by its consumer adhesives division. Growing sales in the other East African markets is expected to cushion the Germany headquartered firm in instances of reduced consumer spending in one market as well as grow its bottom line.