German firm Karcher opens new $3 million distribution center in Kenya

• Early last year, another German shoe line announced an investment of $2.66 million to expand its presence in Kenya by 2025.
• The distribution centre is at the Freight Forwarders Solutions warehouse in Tatu City.
• In recent years, German firms have shown increasing interest and investment in East Africa.

German-based cleaning equipment manufacturer Karcher has announced an approximate $3.25 million investment in the Kenyan market. The firm is setting up a regional distribution centre in Nairobi as a business expansion strategy to evade the toughening global import supply chain due to high logistics costs resulting from pirate attacks in the Red Sea corridor.

The distribution centre is at the Freight Forwarders Solutions warehouse at Tatu City. The brand has established a presence in seven Carrefour outlets and partnered with various distributors to cater to customer segments.

It has a flagship store in Upper Hill and serves as a brand store and service centre operated by Equipment and Logistics Limited. It was recently presented with a twenty-year partnership award. Christian May, deputy CEO and chief sales officer at Karcher, says the goal is to transform Kenya’s cleaning landscape by bringing advanced products and services to our customers.

“By establishing Kenya as our regional hub, we are reducing lead times and enhancing responsiveness, ensuring prompt service and satisfaction for our clients,” said May.

Karcher is a B2B and B2C global brand known for its high-pressure cleaners, floor care equipment, parts cleaning systems, wash water treatment, military decontamination equipment, and window vacuum cleaners.

Karcher Logistics Partner, Freight Forwarders Solutions CEO Ben Clay said his company is committed to empowering businesses with seamless logistics solutions, leveraging technology, and fostering excellence in service delivery and economic growth.

“As a global leader in cleaning technology, Karcher exemplifies German engineering excellence and innovation. We look forward to further collaboration and mutual growth between our two nations,” said Sebastian Groth, Ambassador of the Republic of Germany to Kenya.

The Planned Karcher Distribution Center

Karcher Kenya MD Richard Mumo added that the distribution centre holds high-value stock levels to service customers conveniently.

“This investment ensures that our partners no longer have to wait for the 90- day lead time from Germany to Kenya. Additionally, we bear the costs of shipment, freight, duties and taxes,” he said.

He added that they had observed the effects of external factors like the Red Sea crisis. He explained that through their regional distribution centre, they could mitigate the impact of these external shocks on their partners and customers.

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The strategic initiative had notably reduced lead times, showcasing a steadfast dedication to customer-centricity and responsiveness. Regarding the brand’s approach to innovation, he emphasized that they were clear about innovating, showing the courage to explore new avenues and the conviction to approach tasks differently.

He highlighted that this philosophy resulted in solutions with outstanding performance, quality, and handling ahead of the market. He emphasized that for them, cleanliness presented the most significant challenge in the world, and that was their daily focus and goal.

On his part, Joseph Nguyo, senior deputy secretary of the State Department for Investment Promotion, congratulated the Karcher team for the big move, saying that the firm has tapped into Kenya’s special economic zones, one of the key investment areas that the government is focusing on.

“The government recognises this move as an investment on value chains, employment created and we are committed to making the economic environment good for you and other investors,” Nguyo said.