Kenyan consumer goods manufacturer Kenafric has taken a significant step in expanding its footprint in East Africa by acquiring Economic Industries, a well-established stationery manufacturer. The acquisition, which took effect on Tuesday following approval from the Competition Authority of Kenya (CAK), positions Kenafric as the second-largest stationery supplier in the country.
Before the merger, Kenafric held a 12.3% share of the local stationery market, ranking third after Twiga Stationers and Printers (49.4%) and Kartasi Industries (18.2%). Economic Industries, ranked fourth with a 10.3% market share, brings Kenafric’s combined stake to 22.6%, solidifying its new position as a key player in the industry.
Kenafric plans to leverage its extensive distribution network to introduce Economic Industries’ stationery products in Tanzania, Uganda, Burundi, and the Democratic Republic of Congo. This strategic move is expected to enhance access to quality stationery products across the region and drive growth through economies of scale.
“By integrating Economic Industries Ltd’s expertise with our established manufacturing and distribution network, we are poised to expand our market, drive innovation, and deliver more value to consumers,” said Kenafric Group CEO Mikul Shah during the official launch of the merger.
Kenafric has historically been strong in exports, while Economic Industries has focused on local production. By combining their strengths, the company aims to scale up operations, reduce production costs, and offer high-quality stationery at more competitive prices. The merger also aligns with Kenafric’s broader vision of investing in advanced manufacturing technologies and data-driven processes to enhance efficiency and competitiveness.
Following the acquisition, Bhavesh Shah, the former Managing Director of Economic Industries, has been appointed Managing Director of Kenafric’s Stationery Division. His role will be pivotal in steering the company’s expansion into East Africa and overseeing new product development.
Kenafric Chairman Bharat Shah emphasized the company’s commitment to innovation, announcing plans to introduce new product categories, including eco-friendly packaging and advanced school and office solutions. “We are investing in smarter machinery, data-driven processes, and stronger distribution networks. Automation and real-time analytics will boost efficiency and give us a competitive edge,” he stated.
With this strategic acquisition, Kenafric is set to reshape the stationery market in East Africa, ensuring greater accessibility and affordability for consumers while maintaining high-quality standards.
