•According to credit analyst Fitch Solutions, Kenya is the top destination for agritech investments in Africa.
•The firm is targeting the booming agriculture and construction sectors in the region.
German outdoor power tools manufacturer, Stihl Group, is set to establish first base in East Africa, with Kenya as its choice.
The subsidiary, Stihl East Africa, will be its Eastern Africa hub servicing Uganda, Tanzania, DRC, Rwanda, and Burundi among others.
The company is manufactures equipment for forestry, agriculture, landscaping, construction and cleaning. These include cut-off machines, brushcutters, hedge trimmers, grass trimmers and earth augers among others.
According to the firm's CEO Francois Marais, Kenya's infrastructure remains the selling point for foreign markets.
"We are also looking at the new partner state in EAC the DRC and we will have representatives on the ground in all these countries ultimately looking after our customers via the dealership model,” Marais said adding that their offices will be launched later this month.
Stihl started in 1926 in Germany founded by Andrea Stihl, the inventor of the first chainsaw.
“Kenya is a stable and vibrant economy with a lot of growth potential, furthermore the local talent in Kenya has really allowed us to expand our business through their expertise and local insight,” Marais added.
The firm is targeting the booming agriculture and construction sectors in the region, as governments continue to increase investments in these areas.
Agriculture is key to Kenya's economy, contributing 33 per cent of the Gross Domestic Product (GDP) and another 27 per cent of GDP indirectly through linkages with other sectors.
The sector employs more than 40 per cent of the total population and more than 70 per cent of people leaving in rural Kenya.
According to credit analyst Fitch Solutions, Kenya is the top destination for agritech investments in Africa.
Between 2019 and the first quarter of 2022, two of Kenya’s leading agritech startups —Twiga Foods and Apollo Agriculture — have raised $80 million (Sh9.5 billion) and $40 million (Sh4.8 billion), respectively.
This has laced Kenya on the list of emerged Africa’s hot spot for agritech investments.