American investment firm Restance Inc is set to sink Sh450 million to establish a condom-making plant in Kenya.
The firm will invest through East African Development Partners LLC, which it acquired 100 per cent in exchange for five million shares of Restance Inc. The shares were on Friday trading at Sh9 on the OTCMKTS, an over-the-counter exchange.
An investors’ brief on its website indicates Restance has already acquired assets and business operations that include manufacturing equipment for the condom production facility.
It also announced retention of East African Development Partners LLC top official Randell Torno as the new chief executive for its Kenyan unit.
Restance, which has vast interests in the real-estate sector, technology and systems integration as well as health products, said it was in talks with a major global condom brand for production and distribution of condoms across Africa.
“For the upcoming buy-one-give-one #DoItForAfrica campaign, we anticipate to generate Sh2 billion in annual sales and contribute to the United Nations goal of eliminating the spread of Aids in Africa,” it said.
Top officials held a meeting with Kenya’s envoy to the US, former Finance minister Njeru Githae, to plan an investment tour of Nairobi.
“Restance is pursuing several business lines in the growing economies of East Africa. The company is developing opportunities in the region including initiatives in technology and systems integration services, utility support services, affordable housing and health products manufacturing,” it said.
The investment in condom manufacturing is the firm’s first step in pursuit of several business lines in East Africa, it said.
According to a recent study on Kenyan men’s condom use, demand stands at 360 million against a supply of 190 million, which are all imports.