How Kingsway Tyres Is Tackling Cheap Imports and Leading Kenya’s Tyre Recycling Revolution

You had a Commitment to maintain Leadership in Kingsway market. How has that Strategy Evolved over the past year?

Leadership has certainly been a challenge, and we have had to rethink what leadership looks like in a highly price-sensitive market. A significant factor is the influx of Chinese manufacturers who are dumping tyres into Kenya due to tariff restraints in the United States and globally. As a result, the product has become highly price-sensitive in terms of real value to the customer.

Our approach to leadership has shifted from being purely product-based to service-oriented thinking. We now focus on safety and security as key aspects of the product. This includes optimising our human resources through training and strengthening our selling strategy. That has essentially been the new direction of our strategy.

Have you engaged in any Lobbying efforts regarding Policy, particularly in relation to the dumping of Tyres in Kenya, as you mentioned? Or is that entirely beyond your control?

Unfortunately, it is an open market. Kenya is part of international trade agreements and adheres to the guidelines set by the International Chamber of Commerce in Paris. As a result, there is an open trade policy in place. Anyone who can invest and bring in a product is permitted to do so and sell within the marketplace, provided they have the required paperwork, licensing, and other formalities in place.

With Kingsway  Tyres, has there been a deliberate effort on your part as a company to go Greener, despite the Influx of other Tyres into the Country?

Two things have happened in Kenya. Firstly, the National Environment Management Authority—an arm of the government—is now taxing every product that enters the country for disposal purposes. As you know, tyres do not decompose on their own. They create massive dumps, which, when water collects in them, become breeding grounds for mosquitoes and cause other significant environmental issues. As a result, the government has imposed a tax on every tyre that enters the country, specifically for its eventual disposal.

We took leadership in tyre recycling about five years ago. We are now opening a second branch in a new city called Eldorado. The idea is to bring the facility closer to the tyre consumer, so that when dumping takes place, transport costs are not incurred, making the process more affordable. The tyres are decomposed into oil, which we then sell to larger industrial users with furnaces.

Would you say that you are still Maintaining Leadership by finding Innovative ways to stay relevant in the market?

We have lost leadership in terms of volume sales, primarily because we did not adapt quickly enough to the low-cost imports entering the country. We have always been known for selling branded products—ones that prioritise safety and appeal to brand-conscious consumers. These products ensure safety while driving at high speeds and on typical Kenyan road conditions.

Could you Delineate these Projects for us and give us an Idea of what you are Currently Working on?

The United Nations, which is located in the same neighbourhood as the Village Market, is expecting a significant influx of new personnel into the country. According to recent discussions in Washington, D.C., this number could be as high as 6,000. Unfortunately, we are behind schedule in the construction of our project, but we are confident that there will always be a demand for apartments and hotel rooms in this area. This is primarily due to our close proximity to nearly 60 diplomatic missions and embassies—including the UN, the American Embassy, Canadian Embassy, Australian Embassy, among many others.

Could you tell us more about What is New with the Project?

One of the sectors performing well in Kenya is tourism, and it remains a constant due to a remarkable event that occurs every year: the migration of the wildebeest. If you have not seen it, then you have not truly experienced wildlife. It is a profound connection to nature—an awe-inspiring spectacle that unfolds annually for about four months in the Masai Mara. Witnessing a million wildebeest around you is something that engulfs you. It is a phenomenon that has occurred for as long as I can remember—an eco food cycle that repeats each year.

We are currently working on projects in the Masai Mara, including the Superior Camp, and we have plans to establish additional camps within the reserve. We have taken a position to develop more accommodation options for tourists visiting Kenya.

Typically, tourists visit three primary regions: the Mount Kenya region, the Masai Mara, and the coast—which is incredibly beautiful and compares favourably with some of the best beaches in the world. We are focusing heavily on these areas.

In addition, we have assumed a leadership role in developing restaurant brands within Kenya. The rationale is simple—every hotel requires high-quality dining options. We have established specialised restaurants within each of our hotels—currently three in Nairobi, with one more under construction. The long-term plan is to expand these restaurant brands into other parts of the country where demand exists.

Tourism demands two essential elements for a successful hospitality brand: first, hotel rooms of global standard, with all the requisite safety features; and second, professionally operated restaurants offering exceptional cuisine. We are committed to delivering both.

 Could you speak to us about it—specifically, your Objectives regarding the Development? What are your Main Requirements for Developing that?

The Special Economic Zone is still very new to Kenya, and it will transform the way the economy operates, particularly in attracting foreign direct investment. The development must meet global standards—this is the most crucial factor for the success of any initiative within the zone. If it does not achieve global standards, the zone will ultimately fail.

We are currently constructing a logistics centre where international companies can store their goods. With the same investment, they can then distribute those goods across East and Central Africa. A major advantage is that these companies will not pay taxes until the goods are actually sold to buyers, who will then be responsible for the applicable taxes. This model provides a significant benefit.

It also presents a better opportunity for selling to small and medium-sized enterprises (SMEs), which are critical to the economic development of Africa and the creation of new jobs.

The role of SMEs—is it to Operate around this Ecosystem?

Exactly. The goods can be distributed to SMEs who may not have the capacity to purchase in full container loads—they can instead buy in smaller quantities.

In addition, manufacturing can take place within the Special Economic Zone. The goods produced there can be distributed throughout East and Central Africa, and even globally. Kenya has trade treaties in place with the European Union and the United States, allowing for tax-exempt access to those markets—not just for goods produced in the zones, but also for those manufactured locally elsewhere in Kenya. This is a major incentive for expanding product markets from Kenya.

There are many other zones across Africa also competing for attention. Would you say the EU and US treaties are your primary advantage or they are others?

I believe there is an additional advantage. The Special Economic Zones are designed primarily to create new markets across East and Central Africa. The goal is to generate competitive advantages for local and regional manufacturing—rather than relying on imports from overseas.

The challenge is that, without economies of scale, we will never be able to compete with international manufacturers. Now, however, we have access to a vast market—500 million people in East Africa, and up to 800 million when Central Africa is included. That represents a significant portion of the African market, which we are well positioned to serve.

What would you say is the unique value proposition of this Special Economic Zone? What types of International Companies are you aiming to attract?

One of the key developments in Kenya is the emergence of call centres for ICT-related jobs. As a primarily English-speaking country, we have a strong advantage in this space. One American company has already established operations with 70,000 seats in one of the zones. There is another group currently setting up a call centre that is expected to generate approximately 5,000 new jobs.

So, call centres and ICT job creation are going to be major focus areas within the zone.

In addition, a specialised university is being established within the zone. It will not offer undergraduate degrees but will focus solely on postgraduate education—particularly PhDs in computing. With this influx of advanced talent, Africa is poised to transform the software landscape, developing more locally driven applications and solutions to meet regional needs.

Another important trend is the export of ICT professionals. Kenya is one of the leading exporters of tech talent to neighbouring African countries and the Middle East. This movement of human capital reinforces Kenya’s growing role in the regional and global digital economy.

How are you Personally Involved in this Project, and which areas are you Contributing to?

We are responsible for developing the infrastructure necessary for foreign direct investment to flow in. This infrastructure will provide international companies with a ready and functional base to establish their operations. So essentially, we are building the physical foundation for the project.

Given your extensive experience in the Hotel and Restaurant industry, clarity what you mean by “infrastructure “?

We are constructing the buildings within the zone, specifically for logistics and manufacturing purposes.

And in this case, is your Client the zone itself, or are you working directly with International Companies?

We are working directly with international companies. Some are coming in from Poland, others from Thailand to assemble agricultural equipment. There are also companies setting up operations for fertiliser production and packaging within the zone. So, there is a wide range of sectors represented, and they all aim to distribute their products regionally.

 What kind of Track Record do you bring in terms of Infrastructure Development?

The reason we are involved in infrastructure development is because we have over 40 years of experience in various types of projects. We have developed industrial buildings, shopping malls, hotels, and commercial properties. Our team has the expertise and capacity in-house to execute these developments effectively.

And the company overseeing all of this—is it the Kingsway Group?

Yes, it is the overall Kingsway Group of companies.

What message would you like to give to International Investors—those considering Africa, evaluating Kenya, but perhaps concerned about Political Activity or Street Demonstrations?

My message is that Kenya is the strategic centre of Africa for product redistribution. I encourage companies to come and manufacture within our Special Economic Zones. These zones are regulated independently of direct government interference—similar to how zones operate globally—to enable skills transfer and local job creation in Kenya, while also benefiting from the expertise international firms bring.

Investments made in the zones are fully protected. You can trade in your preferred currency—usually US dollars—without being exposed to currency risk, as trading is not tied to the Central Bank of Kenya. In terms of taxation, there is only a 10% direct tax, and it applies only after you have recouped your full investment. I do not know of any other market globally that allows you to trade at only 10% tax for the next ten years while exporting to a rapidly growing market.

When you said, “Create your Currency,” what did you mean?

What I meant is that you will be able to trade in your own currency—typically dollars. You can sell in dollars and import in dollars. The key point is that you will not face currency risk, and that is a major benefit of operating within a Special Economic Zone—beyond the tax advantages.

How safe is Kenya for doing Business, considering the recent Demonstrations and Public Movements?

There is no physical threat within the main cities. What we are seeing are political disagreements that can become a bit disorderly at times. However, Kenya’s economic policy continues to strengthen. It is currently the only country in Africa where the value of the local currency against international currencies has remained stable over the past year. By contrast, countries like South Africa, Nigeria, and Egypt—despite being large economies—have seen significant currency depreciation. This stability reflects sound fiscal policy from the central government.