INVESTMENT

Screwcap firm injects Sh570M, to set up base in Kenya

In Summary

•The firm is targeting manufacturers of alcohol brands in Kenya and the wider East African market with anti-counterfeiting closures incorporating the latest technology

Guala Closures East Africa has invested Sh570 million to establish a screw caps factory in Nairobi.

The firm is targeting manufacturers of alcohol brands in Kenya and the wider East African market with anti-counterfeiting closures incorporating the latest technology.

This will help reduce the country’s growing number of counterfeits in the market where the Anti-Counterfeit Authority in Kenya estimates that about 1 in 5 products sold in major towns in Kenya are counterfeit.

“GCEA closures will help fight counterfeit products in African alcohol markets which are posing a severe threat to public health, security, and the economy of the country,” Guala Closures East Africa managing director Sadanand Hanagodimath said during the launch ceremony.

Data by the Kenya Association of Manufacturers shows the state loses close to Sh200 billion annually due to the penetration of counterfeit products in the market.

GCEA supplies leading spirits organizations in Kenya, including, among others, East African Breweries Limited (EABL), Kenya Wine Agencies Limited (KWAL) and Patiala Distillers.

Hanagodimath said the launch and continued capital investment, there would be significant employment creation which is a boost to the economy.