Cleanzine: your weekly cleaning and hygiene industry newsletter 2nd May 2024 Issue no. 1112
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Karcher opens regional distribution centre at Tatu City, Kenya
Karcher has announced an approximate €3 million investment in the Kenyan market.
The move was made to develop the business into a full subsidiary, which includes a regional distribution centre at Freight Forwarders Solutions (FFS) in Tatu City, the 5,000-acre mixed-use Special Economic Zone (SEZ) on Nairobi's doorstep, positioning Kenya as a hub for East Africa.
"Our goal is to transform the cleaning landscape in Kenya by bringing advanced products and services to our customers," says Christian May, deputy chief executive officer and chief sales officer at Karcher. "By establishing Kenya as our regional hub, we are reducing lead times and enhancing responsiveness, ensuring prompt service and satisfaction for our clients."
Stephen Jennings, Founder & CEO of Rendeavour, the owner and developer of Tatu City, adds: "Karcher joins the ranks of many leading global brands at Tatu City SEZ. As Kenya's first mixed-used SEZ, Tatu City has already attracted USD 2.5 billion in investment from more than 78 businesses, from healthcare and food and beverage production to call centres, software engineering, and now cleaning solutions. These investments are creating many thousands of much-needed jobs for Kenyans."
The company that provides warehouse operations for Karcher in Kenya, FFS, has an international-standard logistics and distribution hub in Tatu Industrial Park. FFS provides inbound cargo, freight, and transport services across East and Central Africa. It has a 14,000sq.m warehouse complex, equivalent to the size of some of Nairobi's larger shopping malls, at Africa Logistics Properties in Tatu City.
FFS CEO Ben Clay says: "As we launch warehouse operations for Karcher in the Kenyan market, we are committed to empowering businesses with seamless logistics solutions, leveraging technology, and fostering excellence in service delivery and economic growth.
Sebastian Groth, Ambassador of the Republic of Germany to Kenya, says of the move: "Karcher's investment in Kenya highlights the strong economic ties between Germany and Kenya. As a global leader in cleaning technology, Karcher exemplifies German engineering excellence and innovation. We look forward to further collaboration and mutual growth between our two nations."
Karcher has established a presence in seven Carrefour outlets and partnered with various distributors to cater to different customer segments. Its flagship store, located in Upper Hill, Nairobi, serves as a brand store and service centre operated by Equipment and Logistics, which was recently presented with a 20-year partnership award.
Business benefits at Tatu City SEZ include VAT zero-rating, import and stamp duty exemptions and 10% corporate tax for the first 10 years and 15% for 10 years thereafter.
Tatu City is a 5,000-acre new city on Nairobi's doorstep with homes, schools, businesses, a shopping district, medical clinic, nature areas and recreation for more than 250,000 residents and tens of thousands of day visitors. Tatu City's schools educate thousands of students daily, a range of homes suits all incomes and more than 78 businesses thrive in the country's first operational Special Economic Zone. Located 30 minutes from Westlands, Tatu City represents a new way of living and thinking for all Kenyans in a live, work and play environment that is free from traffic congestion and long-distance commuting.
Image, from left: Axel Stolz, regional president, Africa & India, Karcher; Richard Mumo, managing director Kenya & general manager, East Africa, Karcher; Christian May, deputy chief executive officer & chief sales officer, Karcher; Sebastian Groth, Ambassador of the Federal Republic of Germany to Kenya; and Joseph Nguyo, Senior Deputy Secretary, State Department for Investment Promotion
11th April 2024