NAIROBI, Kenya, Dec 19 – The Competition Authority of Kenya (CAK) has granted unconditional approval for Kenafric Manufacturing Limited to acquire Economic Industries Limited (EIL).
The approval, based on an assessment of competition and public interest, revealed minimal risks to the stationery market while promising significant benefits for industry players.
“The acquisition is unlikely to negatively impact competition in the stationery market. Post-transaction, Kenafric’s market share will increase from 12.3% to 22.6%, positioning it as the second-largest player,” CAK noted, with Twiga Stationers retaining a 49.4 percent dominant share.
The deal follows EIL’s decision to exit the market, allowing Kenafric to expand its footprint in Kenya’s stationery sector.
It aligns with Kenafric’s strategy to diversify offerings in educational and commercial stationery while enhancing its competitiveness against established players like Twiga Stationers and Kartasi Industries.
Kenafric’s broader portfolio spans footwear, soft drinks, confectioneries, and culinary products. EIL, on the other hand, specializes in school and office stationery, with exercise books as its flagship product.
The CAK emphasized the public interest benefits, including employment retention, SME competitiveness, and sectoral resilience.
The transaction underscores Kenya’s economic goals and highlights the stationery market’s robust growth, with a 23.33 percent year-on-year increase in 2021.
