This archive report was first published on 29 October 2019.
Kenya's construction industry has experienced a significant boom in recent years, driven by mega projects such as the Standard Gauge Railway and housing initiatives. This growth has led to an increase in demand for construction equipment, attracting global manufacturers and dealers to the country.
According to data from the Kenya National Bureau of Statistics, new registration of wheeled tractors rose by 49.5% to 4,040 units last year. The demand for equipment is being driven by mega State infrastructure projects such as roads, rail lines, irrigation, mining, and ports, as well as housing.
Global leaders in construction equipment production, such as US-based Caterpillar, Japanese engineering firm Komatsu, and China's Sany, are now shifting their focus to the Kenyan and larger African market. Charles Field-Marsham, executive chairman of Pan Africa Equipment Group (PEG), said, 'We believe Kenya has the potential if managed correctly for significant infrastructure development.'
PEG recently opened a Sh500 million office in Nairobi, and their key competitors include Mantrac Kenya, which largely deals in the Caterpillar brand of construction equipment. Kenya last year imported Sh106 billion worth of machinery and equipment, spurred by the growing activities in construction, infrastructure, and mining.
Scott McCaw, PEG chief executive, said the firm sees opportunities in the extractive industries as well as continued development in the power and energy sectors. Sany is also expanding its presence in Kenya, having signed a deal with Rhombus Construction Company to distribute its products locally in a contract valued at around Sh5 billion.
Other global equipment firms, such as Terex of the United States, Sweden's Volvo, Hitachi of Japan, and Switzerland's Liebherr, are also keen on the African market.
