Stihl Group, a German company that produces agricultural and construction equipment, has opened a new subsidiary in Nairobi, Kenya.
The subsidiary, named Stihl East Africa, is the first East African hub for the company and the second African hub after South Africa, where the company established a subsidiary in 1996.
Stihl East Africa will distribute the company’s products to other East African countries, such as Tanzania, Uganda, Burundi, Rwanda, South Sudan, Ethiopia, and Somalia. The company chose Kenya as its regional hub because of the following factors:
- The rapid infrastructure development in Kenya, especially in the transport sector, facilitates the movement of goods in and out of the country. Some of the recent projects that have improved the transport network include the Nairobi Expressway and the first berth of the LAPPSET Corridor. Some of the ongoing projects include the Metre Gauge Railway, the Western Bypass, and the Nadapal River Section A1 road project.
- The significant contribution of the agriculture and construction sectors to the Kenyan economy, which accounted for 23.3% and 7.3%, respectively, of Kenya’s GDP in Q1’2022. These sectors are expected to boost the demand for Stihl’s products, which include chainsaws, brush cutters, power tools, and gardening equipment.
- The continuous recognition of Nairobi as a regional hub attracts foreign investors and developers. Nairobi has been ranked as one of the most dynamic cities in Africa and the world by various reports and indices.
- The rapid urbanization and population growth rates in Kenya, are currently at 4.0% p.a and 2.2% p.a, respectively, compared to the global average of 1.8% p.a and 1.0% p.a, respectively, as at 2021. These rates create a high demand for goods and services in the country.
Stihl Group said that it was confident that its new subsidiary would enhance its presence and performance in East Africa, which is one of the fastest-growing regions in Africa and the world.
The company also said that it was committed to providing quality products and services to its customers and partners in the region.