Rakesh Rao, Group CEO of Crown Paints Kenya PLC, the undisputed paint brand market leader in Kenya for the last 60 years, shares his assessment of the paint sector in East Africa.

"The paint sector is very competitive in East Africa, particularly in Kenya. When we started in 2005, there were only 10 paint companies. Now, there are 70 paint companies. Many paint companies are mushrooming now, particularly those with low end products. Everyone would like to follow us to the number one brand and everyone says that they make the same quality. We have huge challenges to meet our customers’ expectations, to be competitive, and be a brand leader in the market. We have been the undisputed market leader in Kenya for the last 60 years and we will continue to lead for the next 40 years to come. With the innovations we have, the competitive advantages we have, the people we have, and the brand respect Kenyans have for the Crown brand, no one can beat our brand equity. We also have a presence in East Africa in Uganda, Tanzania, Rwanda. There are a few challenges in those countries. We have been in Uganda for the last 10 years and in Tanzania for 4 to 5 years. We are starting from the bottom in those markets. Liter per person consumption in those countries is quite low. They have not matured in buying premium brand products because they cannot afford it, so they buy cheaper brands. 70 to 75% are local, cheaper, economy brands. When we sell economy brands, it is difficult to make money because the margins are very tight. We are working on 6 to 7% net margins. We have been trying to innovate, push our premium range, educate customers. Everyone respects our brand for quality and we are number one in Africa. It will take longer to educate people about the quality of our products. In the next two or three years, we will be able to have a very strong presence in the premium brands sector in Tanzania and Uganda. We have been doing fairly well in Rwanda. We have a quite strong presence in premium brands there. The Rwandan economy is a bit different, though. They love quality brands there. All the new developments, government initiatives, and infrastructures being developed there are using the quality brand. Wherever the quality is, that is where Crown Paints is and we will continue to lead. That is one of the key advantages we have as the Crown brand in East Africa", says Rakesh Rao.

ABOUT CROWN PAINTS: Established in 1958, Crown Paints (Kenya) PLC has grown to a company with an annual turnover of KSH. 9 billion in 2020, producing 3 million litres of paint per month and employing slightly less than 1,000 staff members. It is listed on the Nairobi Stock Exchange and has regional operations in Uganda, Tanzania and Rwanda. Crown Paints is the most innovative paint company in East Africa, providing tailor-made solutions to the construction and retail segments of the market, with innovative products, services and world-class after-sales support.

FAIR USE POLICY
This material (including media content) may not be published, broadcasted, rewritten, or redistributed. However, linking directly to the page (including the source, i.e. Marcopolis.net) is permitted and encouraged.