British FMCG company PZ Cussons announced SH30 million investment in Kenya, despite recent trading challenges. Among others, the investment will introduce new brands to the country.
PZ Cussons Kenya will see its operations boosted by a further Sh30 million investment, the personal care manufacturer announced. For the past months, trading conditions in Kenya have been challenging, beyond rising inflation and the ongoing political uncertainty, following the unresolved general elections. PZ Cussons says that severe droughts have also negatively impacted its operation in Kenya.
According to Managing Director Sekar Ramamoorthy, however, the Kenyan retail sector presents great potential. The announced investment seeks to meet this opportunity by, among others, introducing new PZ Cussons brands. Ramamoorthy believes “Shoppers continue to look for new experience and hence we need to be ahead of customers thinking in bringing innovative products.”
PZ Cussons predicts the retail environment in Kenya to improve with coming market innovations. The company expects online retail and convenience stores will boost the FMCG sector in Kenya and that’s where we should observe greater positioning of the brand’s products. Kenya is currently the largest grocery retail market in East Africa after Ethiopia. Kenya’s modern trade is well developed for the region, but its outstanding feature is the large number of domestic and regional supermarket players.
Between 2016 and 2021, the population of Kenya is set t o increase at a CAGR of 2.5%. Source: ” The Future of the Grocery Retail Market in Kenya to 2021″, Trendtype, September 2017
Ramamoorthy also mentioned the potential of the Kenyan demographic development. Trendtype expects to grow to 97.2 million people by 2050.
PZ Cussons brands in Kenya include, among others, Robb ointment, Imperial Leather, Joy, Venus or Ushindi. The company operates its East Africa business out of Kenya. Nairobi is in charge of the COMESA countries where it has established formal partnerships and distribution deals. Kenya serves business in Uganda, Tanzania, Malawi, Zambia, Zimbabwe, Rwanda, Mauritius, DRC. Besides Kenya, PZ Cussons also has African headquarters in Ghana and Nigeria.
