Kenafric eyes East Africa expansion with acquisition of stationery manufacturer

Consumer goods manufacturer Kenafric has expanded its footprint in East Africa with the acquisition of stationery manufacturer Economic Industries, with the deal officially taking effect on Tuesday following approval from the Competition Authority of Kenya (CAK).

The deal will allow Kenafric to expand access to quality stationery across East Africa by using its distribution network to introduce products in Tanzania, Uganda, Burundi, and the Democratic Republic of Congo.

Before the deal, Kenafric held a 12.3% share of the local stationery market, making it the third-largest in Kenya after Twiga Stationers and Printers (49.4%) and Kartasi Industries (18.2%), according to CAK data.

Economic Industries Limited was ranked fourth with a 10.3% share, meaning Kenafric's market share will increase to 22.6% post-merger, making it the second-largest player in Kenya.

“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 Mikul Shah, Kenafric Group CEO, at an event to launch the merger.

“Economic Industries Ltd has been producing stationery for the local market, while Kenafric has been strong in exports. By combining forces, we can scale up operations, reduce production costs, and make high-quality stationery more affordable.”

Following the merger, Bhavesh Shah, the former Managing Director of Economic Industries, was appointed Managing Director, Stationery Division, Kenafric. He will be expected to steer the company’s expansion into East Africa.

According to Kenafric Chairman Bharat Shah, the company plans to introduce new product categories, including eco-friendly packaging and advanced school and office solutions, to meet evolving consumer needs while maintaining high-quality standards,

 “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 said.