Local machinery firm moulds its mark in construction sector
Kafum Engineering Manager Wycliffe Otieno holds up a hollow brick made from a Hollow Brick Machine at the workshop located in Kariobangi South on September 29, 2022.
It’s no secret that technology is rapidly changing the landscape of the construction industries in Kenya.
This ranges from increasing the efficiency of day-to-day operations to building new and advanced high-tech building.
Typically, it’s the companies that have the ability to adapt and embrace technological change that ultimately survive the competitive business climate in the field of building and construction in Kenya.
About 12 years ago Kafum Engineering started supplying fence moulds parts in Nairobi. The business was prompted by an acute fence moulds shortage in the local market forcing constructors to incur hefty import costs.
Over the years, Kafum has established itself largely as a manufacturer of agri-machinery and construction machinery.
Technical know-how
“Back then, I was working for a certain company as a mechanic making the moulds. This is where I got the technical know-how for the business. Good customer service skills helped me understand market needs and preferences. One of my clients told me I should start my own business which gave me a boost, and resorted to opening the business,” said Wycliffe Otieno, the company manager.
The business has invested in the production of fairly priced construction machinery, equipment and mould.
Some of the things they manufacture include concrete mixers, crane machine, terrazzo machines, stabilised soil block machines, block press machine, stone cutting machine, vibration tables, pillar column moulds, culvert mould, louver blocks moulds, pigment pond edge moulds, post spacers, both manual cabro and automatic cabro and columns ventilation moulds--all in Kenya.
Some clay bricks made by an interlocking brick machine used in the construction of houses pictured at Kafum Engineering located in Kariobangi South on September 29, 2022.
The business also manufactures scorn & square slump test tool, concrete cable markers/ indicators water towers fabrication and scaffold.
Having invested heavily in a variety of machines, the business is able to manufacture orders within a day of a client placing the order; its production capacity has doubled over the past five years.
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In turn, this has seen the business continue to penetrate into a market largely dominated by imports. No doubt, the company is cutting a niche for itself in Kenya east and central Africa
“Because of the customer needs, we have been keen to offer different kinds of products, diversifying from construction to agri-business as we deliver in Kenya, East Africa and west Africa. Given the opportunity, say the government reduces imports, we can really do well as a sector.”
As the business marches into its clearly defined future of becoming the specialised manufacturing sector provider in the country, its MD says that the sector still has existing demand and space for many more SMEs providing similar services.
“What we do is all Kenyan. We buy materials locally from other traders and manufacture our products. Social media platforms help us connect with local businesses both to procure materials and to sell our products.”
According to Kenya association of Manufactures(KAM) 2017 report, the manufacturing sector in Kenya has faced significant challenges in the last 15 years.
Rise of fears
This has seen its contribution to GDP drop significantly giving rise to fears of a premature industrialisation phenomenon.
The structure of the manufacturing sector has seen little change over the years despite targeted policy interventions attempting to adjust this.
The manufacturing sector’s share of GDP has remained stagnant with only limited increases in the last three decades, contributing an average of 10 percent from 1964-73 and rising marginally to 13.6 percent from1990-2007 and averaging below 10 percent in recent years.
Production in the manufacturing sector is geared towards consumer goods.
Manufacturing is a key sector in Kenya's economic development, in both its contribution to national output and exports, and for job creation.
Key targets and specific goals have been set to steer industrial growth. These include the development of Special Economic Zones, industrial parks and clusters, and niche products and Kenya’s imports have expanded to stand at 40 per cent of GDP, compared to 15 per cent for exports.
In the last 10-year-plan, the government created model factories to impart manufacturing expertise to SMEs, as well as strengthen sub-contracting policies to improve links between big and small players.
The blueprint adds that an industrial development fund will respond to investment opportunities in priority areas and accelerate development of infrastructure for priority projects.
