Heavy machinery will be paramount for construction of county government bases. Mantrac has expanded its presence in Kenya to handle the growing clientele. Photo/FILE
Heavy equipment supplier Mantrac has expanded its operations in Kenya to tap into a construction boom triggered by the ongoing infrastructure and housing projects across the country.
The construction of county government offices and related infrastructure that is expected to start soon will further provide an expanded market for construction equipment vendors.
There is also ongoing shift to give more incentives to the residential housing sector in a market that is under-supplied with lobbying directed towards enabling construction of affordable middle income homes.
Kenya is also planning mega projects in wind power, with Lake Turkana Wind Power, expected to break ground in December this year in an area that will require roads and related infrastructure.
The construction of Lamu Port, which is also in the pipeline, will need heavy equipment as well.
Mantrac and Panafrican Equipment Kenya, both vendors of earth-movers including construction tractors and heavy-duty generators are the two main players in the Kenyan market.
Mantrac said it has spent Sh160 million to expand its warehouse and renovate its premises in the Industrial Area readying for a market battle in an economy that has lined mega projects on expansion of roads, port, waterworks and airports.
“Our sales in Kenya have been growing in the last five years despite the global meltdown and post-election violence and that is why we are investing to take care of the growing client list,” said Mantrac managing director Fred Aryeetey.
The company said it plans to invest a further Sh24.6 million this year to expand its Nairobi facility to handle more equipment, spares and improve customer service.
Robust infrastructure development has provided the biggest market for earth movers and heavy diesel generators.
Other key projects that will provide long term market for earth movers include the ongoing construction of Thika Road, construction of water dams across the country, the relocation of Wilson Airport to Ruai, the Konza ICT City and other projects related to Vision 2030.
Reforms in the construction sector like the proposed National Construction Authority Bill are expected to drive growth.
Local financing solutions like the Infrastructure bonds are expected to ease the risk of stalled projects that could slow down the equipment market.
Matrac is the sole distributor of Caterpillar brand in Kenya.
The government first issued infrastructure bond in February 2009 and subsequent three others that have collectively raised Sh86 billion.
In addition to market leaders Panafrican Equipment Kenya and Mantrac, there are small players, most who sell second hand earth movers while others are involved in leasing.
