German Firm In Deal To Build Kenya Assembly Plant

A local company has partnered with a German heavy machinery maker in a Sh23 billion venture that will see the assembly of road construction and agricultural equipment done in the country.

A road grader. Bico and Liebherr are eyeing counties where demand for heavy machinery is high. PHOTO | FILE

A road grader. Bico and Liebherr are eyeing counties where demand for heavy machinery is high. PHOTO | FILE


Bico, which is registered in Kenya, has partnered with Liebherr to build an assembling plant in Nairobi starting end of the year.

Bico founder Andrew Malunga said the company has set a target to produce at least 30 units a month comprising of earth movers, water drilling machines and farm machinery such as tractors.

The investors have an eye on county governments as their main customers.

“As the counties grapple with the huge mandate of providing residents with good roads and agricultural machinery, there is the challenge of equipment and we expect that this venture will come in handy for the devolved units,” he said, adding that assembling the equipment locally will help reduce their prices.

“Marketing of the farm inputs locally will, for instance, save taxpayers from excessive taxation, and the spare parts for the machines will also be readily available,” he said.

Transform country

He added that they have acquired five acres of land in Nairobi where the assembly plant will be situated, while a showroom will be built in Malindi.

“The infrastructure developments that have been initiated by the government will transform this country and proper equipment for construction are required. We believe that we have come in at the right time to provide these equipment,” said Mr Malunga.

While a loader imported from Germany costs over Sh20 million, the ones that will be assembled in the country will cost about Sh13 million, said managing director Shadrack Mwangolo.

Mr Malunga said the company will set up stations in each county and employ machinery operators to enable the devolved units lease the equipment, creating at least 5,000 jobs across the country.

“Liebherr products have been proved to be reliable and durable and will serve as a key driver to development in the counties,” he said, adding that there were plans of establishing branches in other countries within the region.

– Business Daily

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