French energy firm Schneider Electric Kenya will offload its manufacturing operations in the country, signalling difficulties in local value-addition.
In a statement, Schneider Electric Kenya said it had agreed to transfer its business of manufacturing switchboards to ACTOM Kenya Ltd, another manufacturer.
Schneider, which entered the country in 2015, will continue to run its sales, marketing, projects, services, and logistics operations from Kenya, serving the East African market.
This comes two years after Schneider established an assembly line in Nairobi for the manufacture of industrial switchboards to be sold in the region. The deal will see ACTOM, a manufacturer of electro-mechanical equipment in Africa, take over the production of Schneider Electric’s BlokSeT-type tested switchboards.
“Our agreement with ACTOM undoubtedly strengthens our strategic ambition to prioritise our digital offerings, software, and services to in turn enhance our service offering to our loyal customers,” says Carol Koech, country president for East Africa at Schneider Electric.
In 2018, three years after entering Kenya by acquiring Power Technics Limited, Schneider announced a decision to retrench some 50 employees in what it has attributed to a tough business environment.
Source : BusinessDaily