Kim-Fay East Africa relocates, to build Sh2.5b plant and head office at Tatu City

Consumer products manufacturer Kim-Fay East Africa has broken ground for the development of a Sh2.5 billion plant and corporate headquarters in Tatu City, as it relocates its operations from Nairobi's Industrial Area.

The firm that makes Huggies baby diapers and Cosy toilet rolls, has said the move has been occasioned by a need to expand production capacity to meet growing demand.

The deal announced yesterday will provide a major boost to Tatu City, which has already attracted several large firms including Dormans Coffee and Coopers.

"Kim-Fay's move to Tatu Industrial Park is a sign of our confidence in and commitment to the Kenyan and East African markets, and it perfectly positions Kim-Fay for further growth and expansion," said the company's Sales & Marketing Director Hartaj Bains.

The firm said it had acquired 10 acres in the planned private municipality where it hopes to move its manufacturing, distribution and warehousing facilities in two years. Kim-Fay manufactures and distributes products for a UK firm Kimberly-Clark, apart from its own brands.

Growing incomes have led to a spike in the demand for personal hygiene products in Kenya, and has seen an influx of international firms.

Peter Kuguru, known for Softa range of soft drinks, announced last month that he was establishing a Sh2 billion plant to manufacture diapers and sanitary towels in Nairobi, two years after French beauty products giant L'Oréal Group acquired Interconsumer Products in a multi-billion shilling deal.

Tatu City's Chief Operations Officer Chris Barron said the entry by Kim-Fay was a significant endorsement. Executives at Tatu City have had to expand the area allocated for the Industrial Park from the initial plans to accommodate the demand.

Heavy traffic

That could be a pointer to the need for manufacturing space, amid shortage in the designated industrial regions of the city. Heavy traffic has also pushed manufacturers to look outside Industrial Area. Early this tear Dormans Coffee Group announced acquisition of 10 acres of land at Tatu City for construction of its global headquarters.

The firm plans to spend Sh650 million to move its coffee roasting factory and head office to the new headquarters as it follows other companies seeking to move to less congested neighbourhoods.

"The challenges of working in central Nairobi have become greater over time as it has become crowded. Out here we will avoid that," Dormans Coffee Chairman Jeremy Block said.