Regional paint maker Crown Paints Kenya Ltd has shelved plans to expand to more countries in the region as its existing subsidiaries are yet to take off due to market challenges.
Crown’s operations in Kenya, Uganda, Tanzania and Rwanda are facing a cash crunch with the firm’s CEO Rakesh Rao saying it is “tough to do business in the region.”
“Things are hard across Uganda, Tanzania and Rwanda,” he said.
“The major problem we have is a cash crunch; demand has slowed down and money is not coming in.”
Two years ago, the firm embarked on an aggressive regional expansion plan to Rwanda and Tanzania to reduce its reliance on Kenya and benefit from potential growth opportunities in the new markets.
In 2014 the company announced plans to set up factories in Ethiopia and South Sudan, but has now put them on hold, saying it will only distribute to these markets from Kampala or Nairobi.
The paint manufacturer has plans to set up factories in Ethiopia and South Sudan on hold. Photo www.mamboads.com