State seeks space at new business park

By Fredrick Obura

The Government plans to lease the newly constructed multi-billion Sameer Industrial Park along Mombasa Road for the growth of ICT.

It is expected that Business Processing and Outsourcing companies will also seek to be housed in the same facility.

Speaking during the firm’s 41st annual general meeting on Friday Naushad Merali, the Sameer Africa chairman said the company would consider the Government’s offer first against other bidders.

He said the management’s decision was informed by the role the BPO sector would play in boosting Kenya’s economy.

"We are discussing modalities with the Government and once the facility is complete mid this year, they will be able to use the park for ICT businesses," Mr Merali said.

"The BPO sector is an area the Government has earmarked in its Vision 2030 blueprint as a potential area in job creation, we will give discount to them where possible," he said.

The business park along Mombasa Road in Nairobi is a 400,000 square feet office and showroom space connected with fibre optic cable. It will compliment Sameer’s tyre business

Last year, the tyre firm recorded improved earnings by posting turnover of Sh3.2 billion representing eight per cent growth in earnings. The corresponding profit before tax was Sh221 million marking a 33 per cent increase over the previous year.

The firm’s Managing Director Michael Karanja said the firm’s performance was impressive despite the challenging economic realities.

"We have been under pressure due to the rising cost of doing business in the country, last year for instance was characterized by a slow economic growth, high fuel, utility costs and runaway material prices critical for tyre manufacture," Karanja said.

He said the firm’s strategies since 2008 are working and will continue deepening them.

Sameer Africa is eyeing the region’s full integration. It hopes it will offer growth opportunities for its products.